Honda To Focus On Hybrids, Scale Back On EVs

Honda To Launch 13 Hybrids By 2027, Scale Back On EVs Due To Trump Administration’s Executive Order Changes

Honda announced that it would scale back on EVs and increase its focus on its hybrid models. The brand suggests EVs will account for 20% of the sales as opposed to the anticipated figure of 30%. This resulted in a massive budget cut for electrification.

Honda joins several brands in reducing expenditure on electrification and software by 30% to USD 48.4 billion. This happened after the Trump administration revoked an executive order, which ensured all vehicles had to be EVs by 2030. In addition to it, the brand also announced that all next-generation HEVs will carry a new ‘H’ mark.

The Japanese brand plans to launch 13 next-generation hybrid models, designed for the global market, by 2027. This will be higher compared to the current hybrid model portfolio. The development of a hybrid system for large-sized models is also underway and is expected to launch in the second half of the decade.

Outlook

Honda is aiming to sell 2.2 million to 2.3 million hybrid vehicles by 2030. This is a bold prediction, considering they sold 886,000 hybrid vehicles last year. The projected figure is also closer to the 3.8 million total vehicles sold last year. The automaker has also halted the plan to build an EV production base in Ontario, Canada, worth USD 15 billion.

Honda plans to have BEVs and fuel cell-powered vehicles account for all of its new car sales by 2040. It is important to note that automakers like Nissan have also taken similar measures, considering the nature of the EV segment.