Abishek D Praphullalumar
Honda is recalibrating its electric future, cutting its planned EV and software investment by 30%, from €62 billion to €43.62 billion by 2030. The company now expects EVs to make up just 20% of sales by then down from an earlier 30% target. Despite scaling back, Honda maintains its 2040 goal of an all-battery and fuel-cell lineup.
To fill the gap, Honda will fast-track hybrid vehicles, aiming to launch 13 new models globally by 2031. The focus will be on integrating hybrid powertrains into larger vehicles later in the decade, with a target of selling 2.2 to 2.3 million hybrids annually by 2030. Honda sees hybrids as a practical bridge for consumers hesitant about full EVs.
The pivot follows Honda’s pause on its €9.64 billion EV factory upgrade in Ontario, delaying several battery plants by two years. However, U.S. plans remain intact, with Ohio set to produce next-gen EVs like the 0 Saloon and 0 SUV from 2026.
