Honda Ramps Up $65 Billion Investment, Aiming for Seven New EV Models

May 17, 2024 04:40 AM EDT

WHITE CAR PARKING ON THE ROAD AT DAYTIME — (Photo : PEXELS/Albert Nunez)

During the recent strategy announcement, CEO Toshihiro Mibe reaffirmed Honda's unwavering stance on EVs being the optimal solution. Honda is optimistic about its ability to compete in the small electric vehicle and motorcycle market segments and anticipates sustained growth in EV adoption. The company is gearing up to leverage the upcoming "period of EV popularization" expected in the latter half of the 2020s.

$65 Billion Investment, Seven New EV Models Soon

Honda Motor in Japan has committed to doubling its investment in electrification and software to approximately $65 billion over the next decade, spanning until the 2030 business year, as disclosed on Thursday. As per a Reuters report, Honda's CEO Toshihiro Mibe shared during a press conference that the company intends to invest a sum of 10 trillion yen ($64.88 billion) in electrification and software, doubling the previous commitment made in April 2022.

The company, entering the electric vehicle scene later, prioritized securing battery supply, cost efficiencies, and performance enhancements before delving into software-defined vehicles, as highlighted by Mibe.

Furthermore, CEO Mibe announced that starting in 2026, Honda's upcoming models within the electric vehicle lineup will boast a range exceeding 300 miles (482 km). He committed to integrating these vehicles with an ultra-slim battery pack and a newly engineered compact e-axle for enhanced performance.

Electrek shared that as part of its fresh approach, Honda targets a 5% profit margin on sales in 2030 for its electric vehicle division, with the goal of achieving self-sufficiency. The introduction of Honda's latest 0 series is anticipated to be instrumental in this endeavor, with the unveiling of two innovative concepts, the Saloon and Space-Hub, taking place at CES in January.

Saloon and Space Hub

Electrek further shared that the Saloon is positioned to emerge as Honda's upcoming premier electric vehicle, with a production model closely resembling the concept slated for release in 2026. Initially, it will debut in North America before reaching a wider international audience.

Subsequent to the Saloon, Honda has outlined plans to introduce seven electric vehicle models worldwide, spanning various sizes. In China, Honda aims to launch ten new EVs by 2027, ultimately constituting 100% of automotive sales in the region by 2035. Additionally, Honda revealed its latest "Ye Series" EVs designed to compete with Chinese automakers such as BYD.

Honda is set to introduce a range of compact electric vehicles, commencing with the N-Van e, a commercial mini electric vehicle. Following its release in Japan later this year, Honda plans to roll out a selection of small-sized EVs tailored to specific regions. This lineup will encompass individual mini-EV models scheduled for launch in 2025.

According to a report by Investopedia, in March, Honda and local competitor Nissan expressed interest in collaborating on electric vehicles. Honda reiterated on Thursday its strong conviction that EVs represent the optimal solution for small mobility products like motorcycles and cars, stating its confidence in the ongoing and steady progression of the EV transition.

The Japanese car manufacturer announced its aim for electric vehicles, encompassing hydrogen-powered fuel-cell electric vehicles (FCEVs), to represent 40% of its worldwide automotive sales by 2030. Additionally, the company intends to ramp up its EV production to 2 million units by that time.