Japanese Automaker Honda Revs Up On EVs, Aiming For Lucrative US, China Markets

TOKYO — Honda reaffirmed its commitment to electric vehicles on Thursday, stating that it will invest 10 trillion yen ($65 billion) through fiscal 2031 to provide EV models globally, including the United States and China.

“Honda has not changed its belief that electric vehicles (EVs) are the most effective solution in the area of small mobility products such as motorcycles and automobiles,” the Tokyo-based business stated.

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Japanese Automaker Honda Revs Up On EVs, Aiming For Lucrative US, China Markets

By 2030, Honda Motor Co. expects battery EVs and fuel cell EVs to account for 40% of worldwide auto sales, with a global production capacity of more than 2 million EVs.

The so-called “0 Series,” a crucial component of Honda’s EV strategy, will be a completely new EV series constructed from “zero,” Chief Executive Toshihiro Mibe told reporters in an online presentation.

The 0 Series will be released in North America in 2026 and then pushed out globally, with seven versions available by 2030. Honda plans to introduce ten EV models in China by 2027, with EVs accounting for 100% of total vehicle sales by 2035.

“We will become a frontrunner in changing lifestyles to attain sustainability goals, not wait for someone else to tackle them,” Mibe told the press.

Despite some rumors of a slowdown in electric vehicle sales in some regions, Honda, which manufactures Acura and Civic cars as well as Gold Wing Tour motorcycles, believes that the trend toward EVs will continue in the long term, becoming dominant in the latter part of the 2020s.

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Japanese Automaker Honda Revs Up On EVs, Aiming For Lucrative US, China Markets

Honda’s desire to pursue battery and fuel-cell EVs looks to contrast with domestic rival Toyota Motor Corp.’s more diverse or “multiple” powertrain strategy, which focuses on hybrids and other models with engines.

Honda is maintaining hybrids in its portfolio as it increases EV output by increasing battery manufacture and making them thinner, with the goal of achieving zero accidents, according to Mibe.

Of the 10 trillion yen ($65 billion) investment in the works, around 2 trillion yen ($13 billion) will go toward software research and development, with another 2 trillion yen ($13 billion) going toward the establishment of full EV value chains in major markets like as the United States, Canada, and Japan.

According to the corporation, around 6 trillion yen ($39 billion) would be allocated to “monozukuri,” or “the art of making things” in Japanese, which includes the construction of next-generation EV production lines, motorcycle electrification, and EV model development.

Mibe emphasized Honda’s multiple agreements, including the one announced earlier this year with Japanese rival Nissan Motor Co. to develop EVs and intelligent driving technology.

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Japanese Automaker Honda Revs Up On EVs, Aiming For Lucrative US, China Markets

Honda stated Wednesday that it has formed an agreement with IBM to collaborate on computer chips and software for future vehicles, satisfying the growing demand for better processing and lower power usage.

“We are steadily and surely moving ahead to be prepared for electrification,” Mibe stated.

SOURCE – (AP)