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Hindustan Times
21-05-2025
- Automotive
- Hindustan Times
Honda scales back EV goals, shifts focus to hybrids amid global EV slowdown
Originally aiming for EVs to comprise 30 per cent of its global vehicle sales by 2030, Honda has now abandoned that target Check Offers Japanese carmaker Honda is making a sweeping change to its global strategy for electric vehicles (EVs), claiming a decline in EV market demand in the U.S., and rising market uncertainties. The company will then cut back on investments in electrification and put its focus on hybrid vehicles in the immediate future followed by a desire to go electric long-term. EV targets pulled back as market cools Originally aiming for EVs to comprise 30 per cent of its global vehicle sales by 2030, Honda has now abandoned that target. The company also trimmed its planned investment in electrification from 10 trillion yen (USD 69 billion) to 7 trillion yen (USD 48 billion) by the fiscal year ending 2031. Also Read : Honda banks on India to power its global electric two wheeler market leadership bid CEO Toshihiro Mibe described the move as a "course correction" rather than a change in long-term vision. He emphasized that Honda is still committed to electrification but will delay the transition in response to current challenges. 'The environment surrounding the automobile industry is changing day by day," Honda noted in an official statement. 'There is increasing uncertainty, especially due to a slowdown in the EV market and evolving environmental regulations." Focus shifts to hybrids and flexible production Under the new strategy, Honda will become more aggressive in the hybrid segment, especially in regions where EV sales are slower to take off. The Marysville Ohio plant and other such facilities will be modified to make both EVs and hybrids to enable the company to be more flexible in production according to how the consumer base shifts. Honda's hybrid pivot also arrives during political headwinds in the U.S., such as potential tariff shifts and diminished policy favor for EVs. Though Mibe did not specifically name former U.S. President Donald Trump, the automaker's realignment seems partly driven by this shifting regulatory environment. Motorcycles, digital safety, and industry collaborations While EVs are experiencing headwinds, Honda is meanwhile experiencing solid momentum in its motorcycle business—most notably, in India, where increasing demand and market share are solidifying its standing worldwide. Also Read : Made-in-India Honda Elevate secures 5 stars in Japan NCAP On the technology side, Honda is spending on sophisticated driver-assist systems and digital safety technologies with the ultimate aim of reaching a zero-traffic-fatality target. Meanwhile, Honda assured that negotiations on a merger with Nissan and Mitsubishi have broken down, although discussions on technology cooperation continue. No timeline has been provided for potential joint initiatives. Despite a 24.5 per cent drop in annual profits, largely due to tariffs and declining sales in China, Honda remains optimistic about its diversified global approach and the flexibility of its revised strategy. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 21 May 2025, 08:50 AM IST
The Sun
21-05-2025
- Automotive
- The Sun
Honda reshapes electrification strategy amidst market shifts
HONDA MOTOR CO., LTD. has unveiled a recalibrated approach to its electrification efforts, responding to the rapidly evolving global automotive landscape. Toshihiro Mibe, the company's Global Chief Executive Officer, addressed the media today, offering insights into Honda's revised direction, driven by a dynamic market environment and the growing importance of intelligent mobility technologies. Despite external challenges, Honda remains committed to its long-term vision of carbon neutrality and zero traffic fatalities by 2050. The Japanese automaker continues to view electric vehicles (EVs) as the most viable pathway to decarbonising mobility. However, in light of regulatory changes and uncertain global trade conditions, Honda is adapting its strategy to ensure sustained competitiveness and broader accessibility to its mobility innovations. Reassessing Priorities in a Shifting Market Mibe confirmed that Honda would intensify its efforts in two key areas: the advancement of intelligent technologies across its EV and hybrid electric vehicle (HEV) lineups, and a comprehensive review of its powertrain portfolio. This dual focus aims to strengthen the brand's foundations while maintaining its innovation momentum. Although Honda previously set a target for EVs to comprise 30% of global vehicle sales by 2030, this projection has now been revised downward due to a softening in EV demand. Simultaneously, HEVs continue to gain popularity, prompting Honda to place greater emphasis on this transitional technology. The company intends to elevate HEVs, particularly next-generation models arriving from 2027 onward, as pivotal products during the shift to full electrification. By 2030, Honda is targeting sales of 2.2 million HEVs as part of a broader effort to surpass its current annual global vehicle sales figure of 3.6 million units. Intelligent Driving Through Next-Generation ADAS At the heart of Honda's strategy is the development of a proprietary next-generation advanced driver-assistance system (ADAS), designed to offer seamless driver support across varied road environments. The system will guide vehicles from origin to destination, covering both highways and urban settings, based on the driver's navigation inputs. Urban deployment presents significant technical challenges, but Honda is leveraging insights from its autonomous driving research to develop robust solutions. This advanced ADAS will begin appearing in EV and HEV models launched in Japan and North America around 2027. While such technologies have been largely reserved for high-end EVs and plug-in hybrids due to energy and cooling demands, Honda's refined full-hybrid systems overcome these limitations through precise energy management and compact component design. These efficiencies also enable the integration of ADAS into smaller vehicles without sacrificing cabin space, an achievement guided by Honda's longstanding 'man-maximum, machine-minimum' philosophy. In China, where both electrification and automation are advancing rapidly, Honda is collaborating with local firm Momenta Global Limited to tailor its next-generation ADAS to regional road conditions. The technology will be standard on all future Honda models in the Chinese market. Bolstering Hybrid Leadership with e:HEV Advancements Honda is also doubling down on the evolution of its e:HEV hybrid systems, striving to make them the most efficient in the world. Enhancements will include broader operating ranges for internal combustion engines, improved hybrid unit performance, and the introduction of a new electric all-wheel-drive (AWD) system offering greater responsiveness and control. The company anticipates a more than 10% improvement in fuel efficiency for upcoming e:HEV models, while also delivering a uniquely engaging and refined driving experience. To further lower costs, Honda is working closely with suppliers to cut the price of its next-generation hybrid systems by over 50% compared to those launched in 2018, and by 30% relative to current 2023 systems. Particular attention is being paid to North America, where demand remains strong for spacious, large-format vehicles. Honda is developing a robust hybrid powertrain for this segment, promising strong performance, high towing capacity, and strong environmental credentials. This system is expected to debut in the latter half of the decade. To capitalise on rising HEV demand, Honda will introduce 13 new hybrid models globally between 2027 and 2031, expanding its portfolio to meet market needs. Preparing for the EV Era with the Honda 0 Series While short-term projections for EV adoption have been tempered, Honda continues to prepare for a fully electric future. Central to this effort is the Honda 0 Series, which will debut its first-generation models in 2026. These smart digital vehicles (SDVs) will offer customisable user experiences powered by Honda's proprietary ASIMO OS and advanced driver-assist systems showcased at CES 2025. These EVs will incorporate a new centralised electronic and electrical (E&E) architecture and utilise a high-performance system-on-chip (SoC) developed in collaboration with Renesas Electronics. The chip will deliver industry-leading artificial intelligence capabilities of 2,000 TOPS (Tera Operations Per Second), promising greater levels of vehicle intelligence and performance. Despite delays in certain investment timelines, such as the development of an EV value chain in Canada, Honda affirmed its unwavering belief in EVs as the cornerstone of future mobility. The company aims to build a strong and resilient EV brand while remaining flexible with its rollout strategy to match market conditions. A New Era of Honda Mobility Honda's realigned strategy reflects a broader commitment to innovation, adaptability, and sustainable growth. The company envisions a future where drivers can choose between dynamic, hands-on driving and relaxed, autonomous commuting, all within the same vehicle. To symbolise this transformation, Honda will debut a redesigned 'H' badge across both EV and key HEV models, marking a bold new chapter for the brand as it evolves toward a smarter, cleaner, and more connected future.
Yahoo
21-05-2025
- Automotive
- Yahoo
Honda reducing EV investments by $21B, shifting focus to hybrids, ADAS tech
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Honda Motor Co. is reducing its investments in electric vehicles through 2030 by 3 trillion yen ($20.7 billion) to focus more on launching new hybrid models, Global CEO Toshihiro Mibe announced in a press briefing Tuesday. The announcement comes after the automaker this month postponed its planned $11 billion investment to build EVs in Canada. Honda cited a market slowdown and changes in environmental regulations, which were a main driver of EV sales, as well as trade policies of various countries, including the U.S. and Europe, for its decision to focus more on hybrids. To support the plans, Honda aims to develop new hybrid powertrain technology and advanced driver assist systems and other intelligent technologies for the new vehicles it plans to launch from 2027 onwards. The company views hybrid models as crucial while the auto industry continues its transition to more widespread EV adoption over the long-term. Dive Insight: Honda originally planned for EVs and fuel cell vehicles to account for 100% of its sales by 2040, but reevaluated its projections based on current market conditions. The automaker now forecasts that its global EV sales mix will fall below its previous target of 30% by 2030. However, the company says that market demand for hybrid vehicles will remain high and its next-generation hybrid models launching from 2027 will be integral for the long-term transition to EVs, which the automaker plans to reassess in 2030. 'In light of the current situation, where the automobile environment is changing significantly, we have reevaluated the future direction of our automobile business,' Mibe said in a media briefing. In the interim, Honda plans to introduce three new hybrid powertrains by 2027 for small, mid-size and full-size vehicles that offer a 10% improvement in fuel economy. Mibe said in the briefing that the North America market is the 'main battleground for its HEV models' and there continues to be a 'solid demand for large-size vehicles with spacious interiors and high cargo capacity.' From 2027, Honda plans to launch 13 new models globally equipped with its next-generation hybrid system. Honda is targeting global sales of over 3.6 million vehicles by 2030, 2.2 million of which are expected to be hybrid models. In February, the automaker announced plans to produce a mix of ICE, hybrid and fully electric models on the same production lines in Ohio, allowing for enough flexibility to adapt to any changes in market demand in North America. Honda also aims to improve competitiveness and is working to reduce the cost of its next-generation hybrid systems by more than 50% compared to 2018 models and over 30% compared to its current hybrid offerings. The company aims to achieve this reduction through collaboration with suppliers, production efficiency improvements and the sharing core components across platforms. In addition to building more advanced hybrid vehicles, Honda plans to offer its next-generation ADAS with a high level of autonomous driving capabilities in new EV and HEV models launching in North America and Japan around 2027. The automakers say that ADAS systems in development today are being adopted for high-end EV and plug-in hybrid models due to technical challenges such as power supply constraints and the need for enhanced cooling requirements. But hybrid models have technological advantages for overcoming these challenges, according to Honda, therefore it can introduce these new ADAS features across more hybrid models. Despite a renewed focus on hybrids, Honda still believes that EVs are the optimal solution for achieving carbon neutrality and the company will continue to prepare for more widespread adoption of battery-powered models in the future. 'There is no change in our view that EVs are the optimal solution to achieving carbon neutrality of passenger vehicles, said Mibe. 'Therefore we will steadily carry out what we have done so fast to prepare for the future EV shift.' The first-generation Honda 0 Series will remain a main pillar of the automaker's future EV business, according to the release. The first 0 Series models are still slated to launch next year as planned. Recommended Reading Honda postpones $11B EV production investment in Canada Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
21-05-2025
- Automotive
- Miami Herald
Honda CEO shares a bold take on the future of electric vehicles
For the past 20 years, those who use cars for transportation have begun to consider another option for their everyday lives: the electric vehicle. Switching from a traditional vehicle to an EV could solve quite a slate of problems. The biggest is that driving gas-powered cars hurts the environment, a problem climate-change experts have said contributes to global warming and could make Earth much less habitable in the future. Don't miss the move: Subscribe to TheStreet's free daily newsletter Combine this concern with many big vehicle companies making a push towards EVs in the last decade. Elon Musk's Tesla may have had the biggest impact when it released its model S in 2012, along with the announcement of its Supercharger network, making EV adoption a reality for millions of interested drivers. Over 6.7 million U.S. residents have purchased an EV since 2010, according to the Center for Sustainable Energy. And while Tesla's highly-publicized fall in popularity may make consumers think EVs are a passing trend, data continues to show that consumers interest is still there. There were nearly 12.5 million EVs and hybrids on the road as of 2024, and that number has doubled since the start of 2020, according to S&P Global Mobility. Related: Auto industry starting to see first cracks from tariffs However, one major automaker that has seemingly been all about embracing EV technology just backpedaled - and its CEO had some notable things to say about the popular automotive movement that may make you rethink buying an EV (or keeping the one you have). Image source: Ota/Bloomberg via Getty Images On Tuesday May 20, Honda (HMC) CEO Toshihiro Mibe announced that the automotive company has decided to lower its planned investment in EVs and related software from 10 trillion yen to 7 trillion from now through 2030. "It's really hard to read the market, but at the moment we see EVs accounting for about a fifth by then," Mibe said. While it's easy to read this pivot as Honda indicating it does not believe in EVs, that's not quite the case. It does, however, signal that the Japanese car company believes adoption rates may be much slower than it originally planned. "EV investment hasn't been abandoned, just pushed back," Mibe also told reporters during an annual business update. Related: Tesla rival has a disappointing message for EV fans Mibe also said that Honda foresees hybrids making up 2.2 million of 3.6 million global sales by 2030. The company had previously forecasted this number at 2 million. Currently Honda also has other issues to address. Earlier in the month, the company said it's expecting a 450 billion yen hit ($3 billion U.S.) to its 2025 profit as a result of President Donald Trump's auto tariffs. While 60% of Honda's production happens in the U.S., the other 40% is adding up to be very expensive. When Tesla CEO Elon Musk was on top of the world a few years back, promising that his cars would soon drive themselves and that owners could even make money from the feature, consumers had a more positive overall sentiment about EVs. However, many have lost faith in Musk after his U.S. government involvement with the Department of Government Efficiency (DOGE). Musk also recently said he would step away from his work with DOGE and recommit to Tesla after the EV company reported a dramatic drop in net income, 71 percent lower than it was a year prior in the same quarter. By mid-March, reports had begun to surface that Tesla owners were selling off their cars at a record level, per car shopping site Edmunds. Slowing EV demand isn't just about Tesla, though. Honda is also not the only automotive brand dialing back its initial EV investment. GM has also slowed on its original promise that it would go all-EV by 2035, with GM CEO Mary Barra now saying customer demand will dictate its future plans. Related: Leaked Tesla policy should infuriate Tesla loyalists The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Calgary Herald
20-05-2025
- Automotive
- Calgary Herald
Honda reveals delay of $15-billion Canada investment part of shift in EV strategy
Article content Honda Motor Co., Ltd on Tuesday released new details explaining why it is delaying its planned $15 billion investment in a battery and electric vehicle complex in Ontario by around two years. Article content Article content In its 2025 Business Briefing, an annual report outlining its strategy, chief executive Toshihiro Mibe said that Honda was reducing its planned global investment in EVs by 30 per cent — to $67.5 billion (7 trillion yen) from $96.4 billion (10 trillion yen) — over the next roughly half-decade because EV adoption has fallen behind the company's initial projections. Article content Article content As a corollary shift in strategy, the company plans to instead increase its production of hybrid-electric vehicles, a technology that allows consumers the comforts of both internal combustion engines and battery-electric vehicles. Article content Article content 'We are reassessing our EV strategy and road map, including the plans for the product lineup and the timing of relevant investments, including the one to build a comprehensive EV value chain in Canada,' Mibe said according to a transcript of his speech accompanying the Business Briefing. Article content The company said last week that the two-year delay to its planned EV project in Canada is not a prelude to a cancellation. Article content The project was announced in April 2024 with an original timeline to begin production by 2028, and included an EV assembly plant, as well as battery-cell manufacturing and active cathode material plants. A battery recycling operation was also a possibility. Article content Article content The overall project was expected to have eventual production capacity of 240,000 EVs per year, and had attracted federal and provincial government support, such as tax credits, that were expected to defray $5 billion of direct and indirect costs. Article content Mibe said Tuesday that the project in Alliston, Ont. — where Honda has produced vehicles since 1986 — is still key to Honda's electrification plans. Article content Article content 'One of our goals with this project is to take batteries in-house, as the core of electrification technology,' he said. Article content But Mibe added that electrification cannot be Honda's responsibility alone, and must be done in collaboration with other companies and governments of various countries. Article content He added that 'environmental regulations, which had been the premise of widespread adoption of EVs' are being relaxed in both the U.S. and Europe. Article content In the U.S., long the export destination for the majority of Honda vehicles produced in Canada, President Donald Trump has said he wants to roll back the electric vehicle transition by cancelling legislation that provided incentives for companies to build EV supply chains in that country, as well as consumer incentives that offset the cost of purchasing EVs.
