Honda Change Direction, Press EV Ambition To Encourage Hybrid Sales

JAKARTA - Honda is taking a major step towards the electrification market by announcing a reduction in its investment in electric vehicles and focusing on hybrid lines globally.

This decision must be taken by the manufacturer considering the demand for electric vehicles around the world which is taking place slowly.

Reporting from Reuters, Wednesday, May 21, the manufacturer with the 'H' logo upright lowered its target of selling electric vehicles to reach 30 percent of its sales by 2030.

"It's very difficult to read the market, but right now we see EVs will take control of about a fifth of the market," said Honda CEO Toshihiro Mibe.

The manufacturer has also cut its investment plans in electrification and software that year by 30 percent to 7 trillion yen (Rp795.9 trillion).

In addition, the decision must be taken after governments in various countries relax emission regulations and sales of electric vehicles.

For example, US President Donald Trump has revoked the Biden administration's executive order to ensure all new vehicles sold in the country by 2030 are electric vehicles.

Due to the reduced target of electric vehicles, Honda has shifted its focus to the hybrid by planning to launch 13 new-generation hybrid cars around the world within four years starting in 2027.

Currently, the company has sold more than a dozen hybrid models worldwide, although only three in the US such as Civic, Accord, and CR-V.

This well-known auto brand has a hybrid vehicle sales target of 2.2 million units to 2.3 million units by 2030 or a major surge from 868,000 sold last year.

Despite the relaxed target, Honda still has plans for future Battery Electric Vehicle (BEV) by selling BEV and fuel cells (FCEV) entirely by 2040.