June 19, 2024
Electric & Hybrid Cars

Honda makes steady progress towards EVs with major investment announcement

TOKYO — Japanese automaker Honda reiterated its dedication to electric vehicles on Thursday, announcing a substantial investment of 10 trillion yen ($65 billion) by fiscal 2031 to introduce EV models worldwide, including the U.S. and China.

According to a statement released by the Tokyo-based company, “Honda remains steadfast in its belief that EVs are the most efficient solution for small mobility products like motorcycles and cars.”

By 2030, Honda Motor Co. aims to have battery EVs and fuel cell EVs account for 40% of its global auto sales, with a projected global production capacity exceeding 2 million EVs.

Chief Executive Toshihiro Mibe unveiled the “0 Series,” a crucial component of Honda’s EV strategy, which will be a brand-new EV series developed from scratch. The 0 Series is set to debut in North America in 2026, followed by a global rollout of seven models by 2030. In China, Honda plans to launch 10 EV models by 2027, with 100% of its auto sales in the region being EVs by 2035.

“We are committed to leading the way in transforming lifestyles to achieve sustainability goals, rather than waiting for others to address them,” Mibe stated during the presentation.

Despite some speculation about a slowdown in the EV market in certain regions, Honda is confident in the long-term viability of EVs, predicting their dominance in the latter half of the 2020s. The company, known for producing Acura and Civic sedans as well as Gold Wing Tour motorcycles, is set on pursuing battery and fuel-cell EVs.

Contrary to domestic competitor Toyota Motor Corp., which favors a more diverse powertrain approach including hybrids and traditional engine models, Honda is dedicated to enhancing its EV offerings while still keeping hybrids in its lineup.

As part of the massive 10 trillion yen ($65 billion) investment plan, approximately 2 trillion yen ($13 billion) will be allocated to software research and development, with another 2 trillion yen ($13 billion) designated for establishing comprehensive EV value chains in key markets such as the U.S., Canada, and Japan.

The remaining 6 trillion yen ($39 billion) will be invested in various manufacturing initiatives, including building next-generation EV production facilities, electrifying motorcycles, and developing new EV models.

Mibe emphasized Honda’s strategic partnerships, citing the collaboration with Japanese automaker Nissan Motor Co. on EV and intelligent driving technology, as well as the recent agreement with IBM to cooperate on computer chips and software for future vehicles.

“We are making steady progress to prepare for the electrification era,” Mibe assured.

FAQ

1. What is Honda’s investment plan for EVs?

Honda plans to invest 10 trillion yen ($65 billion) by fiscal 2031 to introduce EV models globally.

2. When will Honda’s “0 Series” be launched?

The 0 Series will be introduced in North America in 2026, with a global rollout of seven models by 2030.

3. What percentage of Honda’s global auto sales is projected to be EVs by 2030?

By 2030, 40% of Honda Motor Co.’s global auto sales are expected to be comprised of battery EVs and fuel cell EVs.

Conclusion

Honda’s commitment to electric vehicles is evident through its ambitious investment plans and strategic partnerships. By prioritizing EV development and production, Honda aims to lead the way in sustainable mobility solutions for the future.

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