Honda scales back EV goals, shifts focus to hybrids amid global EV slowdown
Japanese carmaker Honda is making a sweeping change to its global strategy for electric vehicles (EVs), claiming a decline in EV market demand in the U.S., and rising market uncertainties. The company will then cut back on investments in electrification and put its focus on hybrid vehicles in the immediate future followed by a desire to go electric long-term.
EV targets pulled back as market cools
Originally aiming for EVs to comprise 30 per cent of its global vehicle sales by 2030, Honda has now abandoned that target. The company also trimmed its planned investment in electrification from 10 trillion yen (USD 69 billion) to 7 trillion yen (USD 48 billion) by the fiscal year ending 2031.
Also Read : Honda banks on India to power its global electric two wheeler market leadership bid
CEO Toshihiro Mibe described the move as a "course correction" rather than a change in long-term vision. He emphasized that Honda is still committed to electrification but will delay the transition in response to current challenges.
'The environment surrounding the automobile industry is changing day by day," Honda noted in an official statement. 'There is increasing uncertainty, especially due to a slowdown in the EV market and evolving environmental regulations." Focus shifts to hybrids and flexible production
Under the new strategy, Honda will become more aggressive in the hybrid segment, especially in regions where EV sales are slower to take off. The Marysville Ohio plant and other such facilities will be modified to make both EVs and hybrids to enable the company to be more flexible in production according to how the consumer base shifts.
Honda's hybrid pivot also arrives during political headwinds in the U.S., such as potential tariff shifts and diminished policy favor for EVs. Though Mibe did not specifically name former U.S. President Donald Trump, the automaker's realignment seems partly driven by this shifting regulatory environment. Motorcycles, digital safety, and industry collaborations
While EVs are experiencing headwinds, Honda is meanwhile experiencing solid momentum in its motorcycle business—most notably, in India, where increasing demand and market share are solidifying its standing worldwide.
Also Read : Made-in-India Honda Elevate secures 5 stars in Japan NCAP
On the technology side, Honda is spending on sophisticated driver-assist systems and digital safety technologies with the ultimate aim of reaching a zero-traffic-fatality target.
Meanwhile, Honda assured that negotiations on a merger with Nissan and Mitsubishi have broken down, although discussions on technology cooperation continue. No timeline has been provided for potential joint initiatives.
Despite a 24.5 per cent drop in annual profits, largely due to tariffs and declining sales in China, Honda remains optimistic about its diversified global approach and the flexibility of its revised strategy.
Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.
First Published Date: 21 May 2025, 08:50 AM IST
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Learning a foreign language, life skills must for BE, BTech students
Chennai: Learning a foreign language, life skills, and industry-oriented courses are mandatory for all BE and BTech students who are going to join engineering colleges this year in the state. Anna University 's academic council on Monday approved academic regulations 2025 for BE and BTech programmes offered in around 300 affiliated colleges. According to the new regulations, students must study any one of the foreign languages — German, Japanese, Korean or Dutch — in the second semester. While autonomous colleges are offering foreign language courses, the university has now made it mandatory for affiliated colleges. It has also introduced life skill courses such as patent filing, industry safety norms, welding process, and electronic components in the first two semesters of BE and BTech programmes. The new regulations also allow the affiliated colleges to offer two industry-oriented courses. These will be one-credit courses that can be taught for 15 hours in a semester. "Colleges can offer skill development courses from the third semester to the fifth semester. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Pieces of Clothing Older Women should Avoid Learn More Undo Students can take these courses under the Naan Mudhalvan scheme as well," a professor said. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai The new regulations also allow students to pursue any online courses and get three credits in the programme. "Provision for honours and minor degrees is extended to affiliated colleges. Students can earn an honours degree by securing 18 extra credits or a minor degree by completing 18 credits in another discipline," a member from the academic council said. "The university has given emphasis to practical component by increasing lab-integrated theory courses. In the new regulations, six of eight courses have labs," another member said. These new regulations will be implemented for the first two semesters from this academic year.
The Print
3 hours ago
- The Print
Gold climbs Rs 400 to Rs 98,020/10 g; silver rises Rs 500
In the national capital, gold of 99.5 per cent purity appreciated by Rs 300 to Rs 97,800 per 10 grams (inclusive of all taxes) on Monday. The yellow metal had settled at Rs 97,500 per 10 grams in the previous market close. On Friday, the precious metal of 99.9 per cent purity had closed at Rs 97,620 per 10 grams. New Delhi, Aug 4 (PTI) Gold prices climbed Rs 400 to Rs 98,020 per 10 grams in the national capital on Monday due to fresh buying by stockists, according to the All India Sarafa Association. In addition, silver prices increased Rs 500 to Rs 1,10,000 per kilogram (inclusive of all taxes) on Monday. The white metal had finished at Rs 1,09,500 per kg on Friday. 'Gold prices traded very strong, driven by a weak rupee and disappointing US macroeconomic data on Friday. The data supported gold prices in the international market, which climbed to USD 3,355 per ounce. 'Tariff-related concerns and rupee depreciation added to the upside momentum. In the week ahead, investors will shift their focus to the upcoming RBI monetary policy meeting and US manufacturing data to provide further guidance on the trajectory of bullion prices in the near-term,' Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities. Meanwhile, spot gold was trading flat at USD 3,363.83 per ounce in New York. 'Spot gold is trading at USD 3,355 per ounce as risk assets are bid on rate cut hopes; however, sharp decline in the Indian rupee on tariff concerns supports the domestic gold prices,' Praveen Singh, Associate Vice President, fundamental currencies and commodities, at Mirae Asset Share Khan, said. However, spot silver rose 0.43 per cent to USD 37.20 per ounce in the overseas markets. PTI HG TRB This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
The Print
3 hours ago
- The Print
Internet firm Rediff explores options to raise USD 100 mn
The board of is currently evaluating fundraising options and is expected to finalize the structure in the coming weeks, they said. However, the IPO option has a high chance of being chosen by management for its USD 100 million fundraising, sources said. The company, which is majority owned by financial technology company Infibeam Avenues Ltd, is considering options such as launching an IPO, private placement, or through private equity participation to raise capital, sources privy to the development said. Mumbai, Aug 4 (PTI) Internet company Rediff is exploring options, including an initial public offering, to raise up to USD 100 million (around Rs 875 crore) to accelerate its push into enterprise-grade email, business productivity suite and digital payments, according to sources. When contacted, Rediff Senior Vice-President for Corporate Development, Ashish Mehrota, said, 'Yes, our company explores various fundraising options from time to time. At this stage, we do not have anything specific to share, but we are evaluating options.' Sources said that the company will use the funds to accelerate its push into enterprise-grade email and business productivity suite -RediffOne, and digital payment – RediffPay. Infibeam has been investing aggressively in data centres, AI platforms, and now, sovereign digital services — all areas where Rediff is expected to play a central role, sources said. The firm had launched its AI-powered productivity suite RediffOne last year and looks to offer similar services that global majors like Microsoft, Google, and Zoho are offering, sources said. While almost all major productivity suites — Microsoft 365, Google Workspace, and Zoho — are headquartered in the US or elsewhere in the West, Rediff remains the only large-scale Indian player in this category. The company claims over 20,000 businesses currently use Rediffmail Enterprise, in addition to millions of individual users on its flagship email platform. PTI IAS MR MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
