Honda cuts back EV plans
Honda says it will pour more money into developing hybrid models and is reducing its planned investment in making EVs by 30 per cent after slowing demand.
Japan’s second-biggest carmaker has also lowered its target for EV sales from 30 per cent to about 20 per cent of sales by the 2030 financial year.
The company’s planned investment in electrification and software by that date has been cut to ¥7 trillion (NZ$81.8 billion), reports Reuters.
It is one of a number of brands, including Nissan and Jaguar Land Rover, reducing EV investment because of global demand favouring hybrids and as governments worldwide ease deadlines to meet emissions rules and EV sales targets.
Honda says it plans to launch 13 next-generation hybrid models globally in four years from 2027 and will also develop a hybrid system for large-sized models.
It hopes to sell 2.2 million to 2.3 million hybrid vehicles by 2030, up from 868,000 units last year.
Despite the change of approach, Honda says it still plans to have battery-powered and fuel-cell vehicles accounting for all of its new car sales by 2040.
