Honda is going easy on its electric vehicle (EV) plans, and perhaps Honda is ready to say goodbye to EVs for good. However, the brand is pursuing the idea of doubling its hybrid technology by producing engines powered specifically by a certain type of fuel. Honda has realized the need to tread carefully while in the running for the EV race; however, the Japanese automaker is proving that it can shift its focus and gears towards a newer production strategy. Soon, Honda will produce a hybrid engine powered 100% by a specific fuel.
Why were EV plans slashed completely?
It was merely a few years back that Honda announced its agenda of investing ¥10 trillion ($69 billion) in EV and software development whilst anticipating 30% of its global sales to come from its EV market by 2030. By 2025, those plans will have been scrapped completely. According to Toshihiro Mibe, the company’s CEO, it seems like the EV market will probably only make up 20% of Honda’s global sales by that time, and thus the company’s EV investment is being slashed by 30% to ¥7 trillion ($48,4 billion).
Perhaps the decision has come about due to the considerable cooling off in terms of the EV market demand, particularly in North America. Honda has thus pushed back the project by two years and put a halt to a $10,7 billion transformation of its Canadian plant into an EV production hub.
The focus has now shifted to a collaboration with General Motors that resulted in impressive models such as the Honda Prologue and Acura ZDX. The company is putting more effort into getting more traction for the Honda Prologue and Acura ZDX. As ambitious as it was for its futuristic 0 Series EVs, including the 0 Saloon and 0 SUV, Honda is no longer going full force into its EV platforms. Although EVs were expected to be produced in Ohio first, any follow-up rollouts of such models remain an uncertainty.
Pushing forward the hybrid agenda
While moving away from the EV agenda, Honda is believed to be going full swing into its hybrid initiatives. While the Nissen and Honda merger made waves earlier this year, Honda is going to make even bigger waves with its plans. The automaker will be launching 13 all-new hybrid models globally by 2031, as well as some large-sized vehicles equipped with next-generation hybrid systems. The shift in strategy, although drastic, shows that Honda can work up a new agenda when and if the need arises.
Honda is planning to sell approximately 2,2 to 2,3 million hybrid vehicles by 2030, which is a much more impressive feat in comparison to the 868,000 units sold in 2024. Approximately half of Honda’s global vehicle sales could be made up of all the hybrids sold.
Honda is still counting on gasoline despite working on cleaner solutions
Honda is not the only automaker diverting its focus away from the EV market since consumers are still rather anxious about EV pricing. Even Elon Musk put a halt to EV production with the focus on testing a fuel he initially called stupid.
Honda, as per their hybrid agenda, is not choosing to abandon the pathway to zero emissions but has chosen an alternate path for now. Honda’s hybrids will still rely on gasoline as the primary source of fuel; however, the focus will fall on improving fuel efficiency and reducing emissions moving slightly away from traditional internal combustion engines.
Honda is of the opinion that consumers would prefer gradual transitions over radical changes. The hybrids will eliminate all concerns about charging access and battery degradation that tend to be commonly associated with EVs. Honda is choosing a more practical route this time round.
According to Honda’s CEO, the long-term plan would be to shift directions entirely to battery-electric and fuel cell vehicles in 2040. Yet for now, gasoline-electric hybrids will be at the forefront of this automaker’s portfolio. So, while Honda is saying goodbye to EVs for now, the automaker is moving towards a more pragmatic direction this time around.
