Betting big on hybrids, Honda reduces EV investment and recalibrates its map to 2030. The move adapts to shifting global demand and regulatory landscapes, says CEO.
Honda Motor Co. will scale back its investment in electric vehicles (EVs) by ¥3 trillion (£15.7 billion) through 2030, redirecting its efforts towards expanding its hybrid vehicle line-up, the company’s global CEO Toshihiro Mibe announced on Tuesday.
The shift follows a pause in Honda’s previously announced $11 billion Canadian EV project.
According to a report by Automotive Dive, slowing global demand for electric cars, evolving environmental regulations, and protectionist trade policies in key markets such as the US and Europe prompted this.
Honda now plans to accelerate the development of hybrid powertrains and intelligent technologies, including advanced driver-assist systems. These updates will underpin a new generation of hybrid models from 2027. The automaker believes hybrids will serve as a crucial bridge as the industry gradually transitions to full electrification.
The firm’s earlier goal—100% EV and fuel cell vehicle sales by 2040—remains, but short-term projections have been adjusted. EVs are now expected to account for less than 30% of Honda’s global sales by 2030.
Despite scaling back EV investment, Honda will not abandon its electrification roadmap. The upcoming Honda 0 Series EV models will still launch as scheduled in 2026. However, hybrid vehicles will take centre stage in the interim, especially in North America, where demand for large, spacious models remains strong.
By 2027, Honda will release 13 new hybrid vehicles globally, featuring three next-generation hybrid systems for small, medium, and large cars. These will offer at least a 10% improvement in fuel efficiency. The company targets over 3.6 million global vehicle sales by 2030, with hybrids comprising 2.2 million.
Production will be streamlined by building ICE, hybrid, and electric models on the same lines in Ohio. Honda also plans to cut the cost of its hybrid systems by over 50% compared to 2018 levels. Mibe reaffirmed that Honda sees EVs as essential to achieving carbon neutrality but stressed adapting to market realities.
