Honda plans to launch 13 next-generation hybrid models globally in the four years from 2027. It now sells more than a dozen hybrid models worldwide, though just three in the US — the Civic, which comes in hatchback and sedan versions, the Accord and the CR-V.
It will also develop a hybrid system for large-size models it plans to launch in the second half of the decade.
The carmaker is aiming to sell 2.2-million to 2.3-million hybrid vehicles by 2030, a huge jump from 868,000 sold last year. That also compares with a total of 3.8-million vehicles sold overall last year.
Earlier this month, Honda announced it had put on hold for about two years a C$15bn (R193.32bn) plan to build an EV production base in Ontario, Canada, due to slowing demand.
Honda said, however, it still plans to have battery-powered and fuel-cell vehicles make up all its new car sales by 2040.
Other carmakers that have scaled back EV investment include struggling rival Nissan, which this month abandoned a plan to build a $1.1bn (R19.85bn) battery factory on Japan's southwestern island of Kyushu just months after it had announced the project.
Jaguar Land Rover has shelved plans to build EVs at parent company Tata Motor's upcoming $1bn (R18.04bn) factory in southern India, sources have said.
Honda to scale back spending on EVs, software and concentrate on hybrids
Image: Tomohiro Ohsumi/Getty Images
Honda is scaling back its investment in electric vehicles (EVs) given slowing demand and will focus on hybrids, now far more in favour, with a slew of revamped models.
Japan's second biggest carmaker after Toyota also dropped a target for EV sales to account for 30% of its sales by the 2030 financial year.
“It's hard to read the market, but we see EVs accounting for about a fifth by then,” CEO Toshihiro Mibe told a press conference on Tuesday.
Honda has slashed its planned investment in electrification and software by that year by 30% to ¥7-trillion (R875.69bn).
It's one of a number of global car brands dialling back EV investment due to the shift in demand in favour of hybrids and as governments around the world ease timelines to meet emission rules and EV sales targets.
US President Donald Trump has, for example, revoked a Biden administration executive order that sought to ensure all new vehicles sold in the US by 2030 were electric.
Nissan is rolling out big cuts but turning around sales will prove harder
Honda plans to launch 13 next-generation hybrid models globally in the four years from 2027. It now sells more than a dozen hybrid models worldwide, though just three in the US — the Civic, which comes in hatchback and sedan versions, the Accord and the CR-V.
It will also develop a hybrid system for large-size models it plans to launch in the second half of the decade.
The carmaker is aiming to sell 2.2-million to 2.3-million hybrid vehicles by 2030, a huge jump from 868,000 sold last year. That also compares with a total of 3.8-million vehicles sold overall last year.
Earlier this month, Honda announced it had put on hold for about two years a C$15bn (R193.32bn) plan to build an EV production base in Ontario, Canada, due to slowing demand.
Honda said, however, it still plans to have battery-powered and fuel-cell vehicles make up all its new car sales by 2040.
Other carmakers that have scaled back EV investment include struggling rival Nissan, which this month abandoned a plan to build a $1.1bn (R19.85bn) battery factory on Japan's southwestern island of Kyushu just months after it had announced the project.
Jaguar Land Rover has shelved plans to build EVs at parent company Tata Motor's upcoming $1bn (R18.04bn) factory in southern India, sources have said.
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