Honda’s electrification plan involved a goal of having EVs account for 30 percent of car sales by 2030, but the automaker recently changed its mind. It now plans to draw down EV investments by 30 percent and will instead focus on expediting new hybrid vehicles.
Honda CEO Toshihiro Mibe said, “Based on the current market slowdown, we expect EV sales in 2030 to fall below the 30 percent that we previously targeted.” His revised expectations place electric vehicles at around the 20 percent mark by the start of the next decade.
Earlier this month, Honda paused an almost $11 billion investment in its Ontario, Canada factory, which was planned to retool for EV production. The automaker said the pause would last for up to two years. That said, Honda still plans to start production of its 0 Saloon and 0 SUV, seen at this year’s CES in Las Vegas, next year in Ohio.
Honda’s new roadmap involves launching 13 new hybrids by 2031, and the automaker said it would expand the hybrid’s availability to larger models, like the Pilot and Passport. Hybrids are significantly less expensive than an equivalent EV and they don’t require charging, making them a more affordable way to save fuel costs without the hassles that come with range anxiety.
[Images: Honda]
Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.
