Japanese automaker Honda reaffirmed its commitment to electric vehicles, saying it will invest 10 trillion yen ($65 billion) through fiscal 2031 to deliver EV models around the world
Japanese auto manufacturing giant Honda confirmed its commitment to electric vehicles on Thursday, announcing an investment of more than 10 trillion yen ($65billion) over the next decade to deliver EV models globally, targeting the US and China among others.
“Honda has not changed its belief that EVs are the most effective solution in the area of small mobility products such as motorcycles and automobiles,” said the Tokyo-based firm in an official release. By the end of this decade, battery EVs and fuel cell EVs will represent 40% of Honda Motor Co. ‘s worldwide auto sales, and it will hold the global production capabilities to make more than 2 million EVs, it promised.
Dubbed the “0 Series,” this component of Honda’s EV strategy will be a revolutionary new EV series moulded from “zero,” explained Chief Executive Toshihiro Mibe during a virtual presentation. The 0 Series will debut in North America in the year 2026, prior to its global launch, with seven models ushered onto the market by 2030.
In China, Honda plans to roll out 10 EV models by the year 2027, ensuring all auto sales in the region are purely electric by 2035. “We will become a frontrunner in changing lifestyles to attain sustainability goals, not wait for someone else to tackle them,” Mibe said.
Despite talk of a slowdown in EVs some markets, Honda firmly believes that the transition towards EVs is unwavering in the long term, potentially becoming dominant within the second half of this decade, according to Honda, the manufacturer behind Acura and Civic sedans and Gold Wing Tour motorcycles.
Honda’s commitment to battery and fuel-cell EVs seems to be at odds with the more diverse strategy of its domestic competitor, Toyota Motor Corp. , which is focusing on hybrids and other models that still utilise engines. As Honda increases its production of EVs, it will continue to offer hybrid models in its range, enhancing battery production and making them thinner, with a goal of zero accidents, according to Mibe.
The company has plans for a 10 trillion yen ($65billion) investment, with approximately 2 trillion yen ($13billion) allocated for research and development into software and another 2 trillion yen ($13billion) for establishing comprehensive EV value chains in key markets such as the US Canada and Japan.
Around 6 trillion yen ($39billion) will be invested in “monozukuri,” or “the art of making things” in Japanese, including the construction of next-generation EV production plants, the electrification of motorcycles and the development of EV models, the company revealed. Mibe highlighted Honda’s various partnerships, like the one announced earlier this year with Nissan Motor Co. for the development of EVs and intelligent driving technology.
On Wednesday, Honda announced a partnership with IBM to collaborate on computer chips and software for future vehicles, addressing the upcoming demand for improved processing and reduced power consumption. “We are steadily and surely moving ahead to be prepared for electrification,” stated Mibe.
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