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[Alpha Biz= Paul Lee] Japanese automaker Honda has announced a major revision of its electric vehicle (EV) strategy, citing weaker-than-expected demand in key markets.



According to Nikkei and other foreign media reports on May 20, Honda CEO Toshihiro Mibe said the company would reduce its planned EV investment from 10 trillion yen (approx. $96.4 billion) to 7 trillion yen, a 30% cut, by 2030.



The company also slashed its 2030 annual EV sales target from over 2 million units to 700,000–750,000 units, which would account for about 20% of its projected global sales of 3.6 million vehicles that year.



As a result, the construction of a planned EV and battery plant in Canada will be delayed by two years. The $15 billion CAD facility was originally scheduled to begin operations in 2028, but Honda will reassess the situation in two years before moving forward.



However, Honda is sticking to its long-term goal of phasing out gasoline-powered vehicles by 2040, shifting entirely to EVs and fuel cell vehicles (FCVs). CEO Mibe emphasized, “We are not abandoning EV investment; we are postponing it.”



In the meantime, Honda plans to boost profitability by focusing on its strong-performing hybrid and two-wheeler segments. Between 2027 and 2030, it will launch 13 new hybrid models, aiming to more than double hybrid sales to 2.2 million units annually. It also seeks to expand its global two-wheeler market share from 40% to over 50%.

 

 

 

 

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