Honda is changing its strategy due to the fact that demand for electric vehicles has not reached expected levels. The company announced that it will reduce its investments planned for fully electric vehicles by a full 30 percent.
Honda will reduce its investments in electric vehicles
Honda CEO Toshihiro Mibe said in a press release that it is becoming difficult to predict the future of the electric vehicle market. Mibe said that under current conditions, only one-fifth of sales are expected to consist of electric vehicles by 2030.
Thus, Honda has also stepped back from its previously announced 2030 targets. In line with this decision, the company has cut its electrification and software development investments by 30 percent, bringing its total investment budget down to approximately $48.4 billion.
realme C71 has appeared on Geekbench with the model number RMX5303. So what exactly will the smartphone offer? Here are the details!
Honda’s new plan includes giving more weight to hybrid vehicles. It is aimed to offer a total of 13 new-generation hybrid models for sale globally in four years from 2027. The company currently has more than a dozen hybrid models worldwide.
Honda plans to sell a total of 2.2 to 2.3 million hybrid vehicles by 2030 in line with its new strategy. Considering that only 868 thousand of the 3.8 million total sales in 2024 were hybrid models, we can say that this target indicates a significant increase.
Despite this decrease in electric vehicle investments, Honda also announced that it has not given up on its long-term sustainability vision. The company plans to make all new vehicle sales battery electric vehicles and hydrogen fuel cell models by 2040.
