Honda Hits The Brakes On EV Push: Here’s What’s Behind The Shift

Motor is scaling back its electric vehicle (EV) strategy in response to declining global demand, reducing its EV sales target from 30% to 20% by 2030. Instead, the company is shifting its focus towards hybrid vehicles, planning to launch 13 new Hybrid (HEVs) over four years starting in 2027, aiming for a sales split of 61% HEVs and 39% EVs by 2030. Honda is also developing three hybrid systems and working on cost reductions for key components. The all-electric Honda 0 Series models are still on track for a 2026 debut, featuring advanced technology such as Level 3 ADAS.

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Focus on Hybrid Electric Vehicles

As part of its revised strategy, Honda plans to concentrate more on Hybrid Electric Vehicles (HEVs). The company aims to introduce 13 new HEV models over a four-year period starting in 2027. By 2030, Honda is targeting a sales distribution of 61 per cent HEVs and 39 per cent EVs. This strategic pivot aligns with the growing consumer preference for hybrids, which combine the benefits of traditional combustion engines with electric power.

New Hybrid Systems and Cost Reductions

Honda is developing three distinct hybrid systems, with two focused on fuel efficiency and one designed for enhanced performance. The upcoming HEV models will incorporate small and midsize e:HEV hybrid systems, aimed at improving fuel efficiency by over 10 per cent. Additionally, Honda is collaborating with suppliers to reduce the costs of essential components such as batteries and motors, with expectations of price reductions exceeding 50 per cent compared to earlier e:HEV systems.

All-Electric 0 Series Launch on Track

Despite the shift in focus, Honda remains committed to its all-electric future. The company confirmed that the Honda 0 Series, which includes both sedan and SUV models, is on track for a 2026 debut. These vehicles will feature advanced technologies, including a Level 3 Advanced Driver Assistance System (ADAS), allowing drivers to take their hands off the steering wheel under certain conditions. The 0 Series models will be equipped with a battery pack of up to 90kWh, providing an estimated range of over 482 kilometres.

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A Balanced Approach to Future Mobility

Honda’s revised EV strategy underscores the company’s commitment to achieving carbon neutrality by 2050 while adapting to changing market dynamics. The introduction of new HEV models and the ongoing development of all-electric vehicles reflect Honda’s dual focus on sustainability and consumer preferences. As the automotive landscape evolves, Honda is positioning itself to remain competitive in both the hybrid and electric vehicle markets, particularly in regions like India, where hybrid offerings are gaining traction.