Honda scales back its EV plans, to focus on hybrids

HONDA MOTOR COMPANY has significantly trimmed its electric vehicle (EV) investment plans, shifting focus towards hybrid models amid a global slowdown in EV demand.

- NITIN KUMAR

HONDA MOTOR COMPANY has significantly trimmed its electric vehicle (EV) investment plans, shifting focus towards hybrid models amid a global slowdown in EV demand. The company now expects EVs to account for less than 30% of its total sales by 2030, lower than its earlier target.

Announcing the same at its 2025 Business Briefing, Honda said it would now invest ¥7 trillion ($48.3 billion) in electrification through the fiscal year ending March 2031, down from the previously committed ¥10 trillion ($69 billion). President and CEO Toshihiro Mibe acknowledged the shift in strategy, emphasizing a more flexible approach to electrification.