Honda Reduces EV Investment Due to Slower Adoption
(MENAFN) Honda Motor Co. revealed on Tuesday that it will reduce its electric vehicle (EV) investment for the period leading up to 2030 by 30%, trimming it from 10 trillion yen (approximately 69.3 billion USD) to 7 trillion yen (48.5 billion USD). This adjustment follows slower-than-anticipated EV adoption and rising uncertainties around U.S. EV subsidies.
Honda President Toshihiro Mibe announced that the company now expects EVs to represent about 20% of its total vehicle sales by 2030, a significant decrease from the earlier goal of 30%.
Plans to build an EV and battery factory in Canada, which was originally set to open in 2028, will be delayed by two years. Honda will revisit the project's timeline in two years based on evolving market conditions.
Despite this reduction, Honda remains committed to its long-term vision of shifting all new vehicle sales globally to electric and fuel cell vehicles by 2040. The company also aims to increase hybrid vehicle sales to 2.2 million units by 2030 and will roll out 13 new hybrid models over the next four years.
Additionally, Honda intends to focus on its profitable motorcycle division, with plans to boost its global market share from 40% to more than 50%.
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