Archive · 20 May 2025
Honda Scales Back EV Plans, Prioritizes Hybrid Production
Honda is changing its plans for electric cars.
They are now focusing more on hybrid cars because not as many people want electric cars as they thought.
Honda is also reducing the amount of money it will spend on electric vehicles.
They are also adapting plants to make hybrid vehicles.
This change is partly because of shifts in the market and a change in government regulations.
Honda is reducing investment in electric vehicle (EV) development.
The company is shifting focus to hybrid vehicle production due to slowing EV demand.
Honda's global EV sales target of 30% by 2030 is scrapped.
Honda plans to launch 13 next-generation hybrid models globally from 2027.
The automaker is aiming to sell 2.2 to 2.3 million hybrid vehicles by 2030.
- Who
- Honda Motor Co.
- What
- Honda is reducing EV investment and shifting toward hybrid production.
- When
- May 20, 2025
- Where
- Globally, with a focus on the U.S. and Canada.
- Why
- Due to slowing EV demand and changing market conditions.
- Investment Reduction
- Reduced EV Investment by 30% (to $48.4 Billion)
- Original EV Target
- 30% of Global Sales (Previous EV Target)
- Strategic Change
- Shift toward Hybrid Production
- Hybrid Sales Target
- 2.2-2.3 Million Hybrid Vehicles by 2030
- Future Goal
- All new car sales to be battery-powered or fuel-cell by 2040
Sources
Honda realigns global strategy: Plans 13 new hybrids by 2030, slows EV expansion
Honda aims to take number 1 spot in global electric motorcycle market
Honda to celebrate 50 million global sales milestone with new two-wheeler reveal
Honda pulls back on EV strategy for now, will push hybrid sales
