Honda Motor Co plans to spend ¥5-trillion ( roughly R582,174,000) on its push into electric vehicles over the next decade as the Japanese automaker with the most aggressive EV ambitions moves to back its bold advance into next-generation cars with concrete plans.
Around 30 EV models will be launched by 2030 with a production volume of more than 2-million vehicles a year, Japan’s second-biggest automaker said on Tuesday. EVs will make up around 40% of the company’s fleet by the end of the decade, Honda said.
In June last year Honda declared it would completely phase out sales of petrol-powered cars by 2040, becoming Japan’s first automaker to publicly say so. In the months since, new CEO Toshihiro Mibe has pushed to hasten the Tokyo-based company’s drive into the increasingly competitive electric segment.
Today Honda has “clear plans in place” with regard to electrification and making its EV business profitable, Mibe said on Tuesday.
“We are moving steadily forward in line with those plans.”
Last month Honda issued $2.75bn of green bonds it intends to use to fund development and production of EVs and fuel-cell cars. Honda said on Tuesday it will consider issuing more securities to fund its electrification spending, though it will have to look further into specifics around budget and timing.
Part of Honda’s electrification offensive has involved doubling down on the world’s biggest EV market, China. In October, Honda announced plans to launch 10 EVs under its “e:N Series” within five years in the nation. Honda also pledged t all models it introduces in China after 2030 will be electric and announced plans for several dedicated EV production plants in the country.
Another of Mibe’s pushes has been around changing Honda’s long-standing go-it-alone strategy when it comes to developing and selling EVs. Mibe hinted at as much in his first briefing after being promoted to the top role in February last year, saying as Honda pivots toward EVs, “time is of the essence and I would opt to use alliances and external insight to accelerate our shift”.
Last month Honda announced it is joining forces with tech giant Sony Group Corp to develop EVs slated to go on sale for 2025. Earlier this month, Honda and General Motors Co expanded their existing tie-up with plans to jointly develop affordable EVs in major global markets. The duo plan to introduce their first model, with a starting price below $30,000 (roughly R436,947), in North America in 2027.
At Tuesday’s briefing, Honda, which sources Ultium batteries from GM, said it is exploring the possibility of creating a joint venture with another company for battery production. Honda also said it plans to start demonstration production of solid-state batteries in early 2024.
A major reason for pursuing such partnerships is cost savings. Along with GM, Honda is seeking to bring down EV costs to the extent they reach price parity with petrol-powered cars.
“Once we’ve achieved large volumes of millions of EVs, we’ll be able to drastically reduce costs,” Mibe said.
More stories like this are available on bloomberg.com
Honda to spend $40bn on EV push, plans 30 new models
Image: Bloomberg
Honda Motor Co plans to spend ¥5-trillion ( roughly R582,174,000) on its push into electric vehicles over the next decade as the Japanese automaker with the most aggressive EV ambitions moves to back its bold advance into next-generation cars with concrete plans.
Around 30 EV models will be launched by 2030 with a production volume of more than 2-million vehicles a year, Japan’s second-biggest automaker said on Tuesday. EVs will make up around 40% of the company’s fleet by the end of the decade, Honda said.
In June last year Honda declared it would completely phase out sales of petrol-powered cars by 2040, becoming Japan’s first automaker to publicly say so. In the months since, new CEO Toshihiro Mibe has pushed to hasten the Tokyo-based company’s drive into the increasingly competitive electric segment.
Today Honda has “clear plans in place” with regard to electrification and making its EV business profitable, Mibe said on Tuesday.
“We are moving steadily forward in line with those plans.”
Last month Honda issued $2.75bn of green bonds it intends to use to fund development and production of EVs and fuel-cell cars. Honda said on Tuesday it will consider issuing more securities to fund its electrification spending, though it will have to look further into specifics around budget and timing.
Part of Honda’s electrification offensive has involved doubling down on the world’s biggest EV market, China. In October, Honda announced plans to launch 10 EVs under its “e:N Series” within five years in the nation. Honda also pledged t all models it introduces in China after 2030 will be electric and announced plans for several dedicated EV production plants in the country.
Another of Mibe’s pushes has been around changing Honda’s long-standing go-it-alone strategy when it comes to developing and selling EVs. Mibe hinted at as much in his first briefing after being promoted to the top role in February last year, saying as Honda pivots toward EVs, “time is of the essence and I would opt to use alliances and external insight to accelerate our shift”.
Last month Honda announced it is joining forces with tech giant Sony Group Corp to develop EVs slated to go on sale for 2025. Earlier this month, Honda and General Motors Co expanded their existing tie-up with plans to jointly develop affordable EVs in major global markets. The duo plan to introduce their first model, with a starting price below $30,000 (roughly R436,947), in North America in 2027.
At Tuesday’s briefing, Honda, which sources Ultium batteries from GM, said it is exploring the possibility of creating a joint venture with another company for battery production. Honda also said it plans to start demonstration production of solid-state batteries in early 2024.
A major reason for pursuing such partnerships is cost savings. Along with GM, Honda is seeking to bring down EV costs to the extent they reach price parity with petrol-powered cars.
“Once we’ve achieved large volumes of millions of EVs, we’ll be able to drastically reduce costs,” Mibe said.
More stories like this are available on bloomberg.com
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