EVWire brief: Honda announced it will scale down its investment in next-generation of EVs and software by 30% โconsidering the recent market slowdownโ and expects the EV share of all sales in 2030 to fall below the 30% previously targeted, making up ~20% instead. The new focus is hybrids.
Context: just last week, we reported on Honda pausing its $11B investment into EV and battery production in Canada for about two years. Now, we see it was a part of a larger shift in focu:
Previously, Honda said it would invest $69 billion (10 trillion yen) by 2030 towards its EV and software development. Now, that figure has been reduced to $48.4 billion (7 trillion yen).
Under the new plan, Honda wants to launch 13 all-new hybrid models globally by 2031, saying โmostly next-generation HEV models to be introduced to market in 2027 onward, as the powertrain that will play a key role during the transition period toward the popularization of EVs and further enhance its HEV lineup.โ Honda expects to sell between 2.2 to 2.3 million hybrids by 2030.
Honda says its 2040 target for fully battery electric (and fuel-cell) vehicle sales will hold, but then again itโs conveniently in the future anyway.
Another segment Honda plans to double down on is motorcycles โ Honda motorcycle unit sales reached 20.57 million units, which account for approximately 40% of the global motorcycle market, โsetting an all-time record for fiscal year sales in 37 countries and territories.โ
Source: Honda press release
Opinion:
We (well, me) at EVwire believe Honda has missed our memo: EVs are here to stay, and the ones suffering โslowing demandโ are the ones with no competitive EVs out on the market. You can see how markets accelerate towards an EV future in our 2024 global EV sales tracker, or the full report.
Looking at Hondaโs EV lineup there is definitely work to do, which now seems to be scaled down instead.
On the software side, we kind of saw some of this coming. Let us present you official slides, by Honda, from their โHonda 0 Tech meetingโ that took place in late 1999 2024
See what I mean?
At EVwire, we are rooting for EVs. If this means we seem overly harsh on any automaker about not delivering towards the inevitable EV mission, on purpose, we just call it out. Apologies. We just wish youโd do better.
We will remember this (EVwire is wired like a brain), but we are equally ready to celebrate if you decide to double down on the EV mission again.
