Japanese legacy automaker Honda announced Thursday its plans to boost electric vehicle-related investments by twofold to $65 billion by 2030. The decision is crucial for the company’s strategy to go all-in in electrification.
Honda commits to an all-electric future
According to the press release, Honda still believes that electric vehicles, such as motorcycles and automobiles, are the “most effective solution” for small mobility.
That said, Honda remains committed to having battery-electric vehicles (BEVs) and fuel-cell electric vehicles (FCEVs) account for 100% of its global sales by 2040.
In order to achieve this 2040 target, Honda aims to launch seven Honda 0 Series flagship models by the end of the decade.
Honda pledged to increase its current electric vehicle investments to approximately 10 trillion yen (about $65 billion) within 10 years through 2030.
“Honda is planning to invest approximately 10 trillion yen in resources… through 2030, when the period of full-fledged popularization of EVs is expected to start.”
Honda
In hindsight, Honda had previously announced a five trillion yen investment to fund its electric vehicle tech development in the medium term.
Cost reduction targets
The Japanese legacy automaker also aims to build a “competitive business structure” that will reduce overall production costs by about 35%.
By 2030, Honda plans to reduce battery procurement costs in North America by over 20% compared to today.
It also seeks to obtain sufficient battery supplies for the planned annual production of about 2 million electric vehicles.
“Honda will reduce the cost of the battery to be procured in North America by more than 20% compared to the cost of current batteries.
Honda will establish a competitive business structure with an aim to reduce overall production cost by approximately 35%.”
Honda
Market slowdown
Industry analysts suggest that Honda’s intensified EV push primarily aims to catch up with Chinese rivals speeding ahead of global rivals.
Global automakers increasingly focus on electric and hybrid vehicles to help combat climate change.
However, various factors slow the electric vehicle market down, according to INQUIRER.NET. Some of these factors include customer concern over high prices, driving range, tech reliability, and lack of charging infrastructures.
With all that said, it would be interesting to see how Honda can catch up in the electric vehicle market amid the slowdown in the market and the surge of cheap Chinese EVs globally. Honda remains one of the best engineering-focused automakers, potentially aiding its efforts to attract more customers toward its EV products in the future.
