Honda’s Commitment to Electric Vehicles and the Future of Mobility
Honda, the renowned Japanese automaker, is reinforcing its commitment to electric vehicles (EVs) by announcing a staggering investment of 10 trillion yen ($65 billion) through fiscal 2031. This investment will enable Honda to deliver EV models worldwide, including key markets like the United States and China.
In a statement, Honda emphasized its unwavering belief that EVs are the most effective solution for small mobility products, such as motorcycles and automobiles. By 2030, Honda aims to have battery EVs and fuel cell EVs constitute 40% of its global auto sales. Additionally, the company plans to establish global production capacity for over 2 million EVs.
As part of its EV strategy, Honda unveiled its ambitious “0 Series.” This series, comprising entirely new EV models created from scratch, will be introduced in North America in 2026 and then globally. By 2030, Honda aims to launch seven models under the 0 Series. In China, Honda is even more committed, planning to introduce 10 EV models by 2027 and ensuring that 100% of its auto sales in China are EVs by 2035.
Toshihiro Mibe, Honda’s Chief Executive, expressed the company’s determination to lead the charge in achieving sustainability goals and transforming lifestyles. He stated, “We will become a frontrunner in changing lifestyles to attain sustainability goals, not wait for someone else to tackle them.”
Despite some concerns about a potential slowdown in the EV market, Honda remains confident that the transition towards EVs will continue to gain momentum in the long run. The company predicts that EVs will dominate the automotive industry in the latter half of the 2020s. This optimistic outlook reflects Honda’s commitment to staying at the forefront of innovation.
While Honda’s approach focuses on battery and fuel-cell EVs, it stands in contrast to its domestic competitor, Toyota Motor Corp. Toyota has diversified its powertrain strategy, placing a significant emphasis on hybrids and other models still equipped with engines. Honda, on the other hand, intends to maintain hybrids in its lineup while simultaneously ramping up EV production and improving battery technology to ensure accident-free driving.
To support these ambitious plans, Honda will allocate a substantial portion of the $65 billion investment. Approximately 2 trillion yen ($13 billion) will be devoted to research and development in software, while another 2 trillion yen ($13 billion) will enable the establishment of comprehensive EV value chains in key markets like the U.S., Canada, and Japan. The remaining 6 trillion yen ($39 billion) will be invested in various aspects of “monozukuri,” or “the art of making things,” including building next-generation EV production plants, electrifying motorcycles, and developing EV models.
Honda’s commitment to partnerships is another crucial aspect of its EV strategy. The company has already announced collaborations with Japanese rival Nissan Motor Co. for developing EVs and intelligent driving technology. Additionally, Honda recently entered into a partnership with IBM to work together on computer chips and software for future vehicles. These alliances highlight Honda’s dedication to staying ahead of the technological curve and meeting the evolving demands of the industry.
In conclusion, Honda’s unwavering commitment to electric vehicles exemplifies its vision for the future of mobility. By investing a substantial amount in research, development, and production, Honda aims to be at the forefront of the transition towards EVs. Moreover, the company’s focus on partnerships and innovative collaborations demonstrates its dedication to delivering cutting-edge technology to consumers worldwide. As Honda progresses steadily towards electrification, it looks set to shape the future of the automotive industry and contribute to a more sustainable world.