Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Honda to Invest $65 Bln in EV Support

Thu 16 May 2024 | 02:00 PM
Israa Farhan

Honda Motor Co. has announced a significant investment plan to bolster its electric vehicle (EV) lineup.

The Japanese automaker will invest 10 trillion yen ($64.8 billion) by 2030, according to CEO Toshihiro Mibe, who shared the company's ambitious strategy on Thursday.

Honda aims to slash the manufacturing costs of electric vehicles by more than 30%, while reducing battery procurement costs in North America by 20%.

These efforts are part of Honda’s comprehensive plan to modernize its operations and enhance its EV offerings.

In his announcement, Mibe detailed Honda's goal to introduce seven new electric vehicle models globally by 2030.

Additionally, the company plans to increase the production of hybrid vehicles, which combine battery power and traditional fuel, to constitute 40% of its global sales by the same year.

“We aim to build electric vehicles with better software than those currently on the market,” Mibe stated.

This highlights Honda's commitment to advancing EV technology and improving user experience.

Honda and its peers are striving to reclaim market share in China, where domestic EV manufacturers have gained favor among local consumers.

The preference for homegrown brands has put pressure on Japanese automakers, prompting Honda to consider reducing its full-time workforce in China amid declining sales.

As part of its recovery strategy, Honda plans to introduce two new electric vehicle models under the recently announced "Ye" series in China later this year. The company also targets having 100% of its models be hybrid by 2040.

In parallel, Honda is exploring the potential of hydrogen-powered vehicles, planning to launch a new hydrogen model in North America and Japan. This diversification reflects Honda’s adaptive strategy to meet varying market demands and technological trends.

Honda and other automakers with hybrid portfolios are benefiting from the global slowdown in demand for fully electric vehicles.

This trend is largely due to rising interest rates and decreasing subsidies, which have made EVs less attractive to some consumers.

Despite these challenges, Honda aims to sell one million hybrid units this year and is gearing up to double its production capacity to two million units annually.