By Ayomide Otitoju
Honda Motor Co. has announced a significant reduction in its planned investment for electric vehicle (EV) production, citing sluggish global demand, and will instead ramp up its focus on hybrid vehicles.
CEO Toshihiro Mibe confirmed on Monday that the automaker has revised its electrification and software investment target down to 7 trillion yen by 2030, a steep cut from the previously projected 10 trillion yen.
“Based on the current market slowdown, we expect EV sales in 2030 to fall below the 30% that we previously targeted,” Mibe stated. He added that EVs may only account for around 20% of Honda’s global vehicle sales by the end of the decade.
Honda now aims to sell between 2.2 million and 2.3 million hybrid vehicles by 2030 as part of its revised strategy.
Earlier this month, Honda announced a two-year delay in its C$15 billion ($10.7 billion) EV production project in Ontario, Canada, citing a deceleration in EV market growth.
Despite the shift, Honda reiterated its long-term goal of achieving 100% zero-emission new vehicle sales—including battery-electric and fuel-cell models—by 2040. The company plans to launch 13 new hybrid models globally between 2027 and 2031, including a new hybrid system tailored for larger vehicles.
The move marks a strategic pivot as global automakers reassess their electrification timelines in response to evolving market dynamics and consumer preferences.
