Honda Accelerates EV Strategy, Investing US$65 Billion to Capture US and China Markets
Honda reaffirms commitment to EVs, investing $65 billion by fiscal 2031. Battery and fuel cell EVs to account for 40% of Honda's global auto sales by 2030. Introduction of the "0 Series" EVs in North America in 2026, expanding globally with seven models by 2030.
Japanese automaker Honda has reaffirmed its commitment to electric vehicles (EVs), announcing plans to invest 10 trillion yen (US$65 billion) by fiscal 2031 to deliver EV models worldwide, with a particular focus on the lucrative US and China markets. The company believes that EVs are the most effective solution for small mobility products like motorcycles and automobiles.
By 2030, Honda aims to have battery EVs and fuel cell EVs account for 40% of its global auto sales, with a production capacity of over 2 million EVs. As part of its EV strategy, Honda will introduce the "0 Series," a completely new EV series, starting in North America in 2026 and expanding globally with seven models by 2030. In China, Honda plans to launch 10 EV models by 2027, with the goal of making 100% of its auto sales in the country EVs by 2035.
Honda's CEO, Toshihiro Mibe, emphasised the company's commitment to sustainability goals and its determination to become a frontrunner in changing lifestyles. Despite some concerns about a slowdown in the EV market, Honda believes that the shift towards EVs will continue to gain momentum, becoming dominant in the latter half of the 2020s.
In contrast to its domestic rival Toyota, which focuses on a variety of powertrains including hybrids, Honda is fully committed to battery and fuel-cell EVs. While ramping up EV production, Honda will continue to offer hybrid models and invest in battery production to ensure thinner and safer batteries, aiming for zero accidents.
Out of the $65 billion investment, approximately $26 billion will be allocated to research and development on software, while another $26 billion will be used to establish comprehensive EV value chains in key markets such as the US, Canada, and Japan. The remaining $13 billion will be dedicated to the construction of next-generation EV production plants, electrification of motorcycles, and EV model development.
Honda also highlighted its partnerships, including the collaboration with Japanese rival Nissan on EVs and intelligent driving technology. Additionally, Honda recently signed a deal with IBM to jointly develop computer chips and software for future vehicles, meeting the growing demand for enhanced processing power and energy efficiency.
"We are steadily and surely moving ahead to be prepared for electrification," stated Mibe, underscoring Honda's commitment to embracing the EV revolution.
Honda reaffirms commitment to EVs, investing $65 billion by fiscal 2031.
Battery and fuel cell EVs to account for 40% of Honda's global auto sales by 2030.
Introduction of the "0 Series" EVs in North America in 2026, expanding globally with seven models by 2030.
Source: AP NEWS