From DCB editorialPresent May 21, 2025
Honda Motor has announced an important strategic postponement that invests its electric vehicles (EV) and redirects its focus on hybrid models in response to global EV demand. The car manufacturer has reduced its planned investment in electrification and software by 30%and now budgeted 7 trillion yen (48.4 billion US dollars) by the 2030 fiscal year.
As part of this pivot, Honda has given up his earlier goal of having EVS Make up 30% of total sales by 2030 and now predict more modest 20%. This step follows a broader industry trend, since the car manufacturers react to the changing consumer preferences and governments around the world.
Honda plans to launch 13 new hybrid models worldwide between 2027 and 2030 and to sell between 2.2 and 2.3 million hybrid vehicles annually by the end of the decade – UP of 868,000 in 2023. The company also develops a new hybrid system for large vehicles that are expected in the second half of the decade.
The shift has already had planned projects, including the shift of $ 15 billion ($ 10.7 billion US dollars) EV production system in Ontario, Canada. Despite the short-term focus on hybrids, Honda confirmed his long-term commitment to electrification and claimed his goal that all new car sales are battery or fuel cell vehicles by 2040.
Other car manufacturers, including Nissan, have also withdrawn from EV investments. Nissan recently scrapped plans for a battery plant of 1.1 billion US dollars in Kyushu, Japan, and underlines growing refurbishment of a growing industry under the developing market dynamics.
