Honda scales back fuel cell production plans in Japan
The changes come in response to recent shifts in the global hydrogen market, prompting the company to reduce the intended production capacity and postpone the plant's operational launch.
Initially, Honda intended to repurpose part of its former Powertrain Unit Factory in Moka for the exclusive production of its next-generation hydrogen fuel cell modules.
This facility was to commence operations within the fiscal year ending 31 March 2028 (FY2028) and was projected to have an annual production capacity of 30,000 units. Preparatory work for the project had already begun.
However, a reassessment driven by evolving conditions in the hydrogen energy landscape has led Honda to scale back the scope of its production ambitions. The company has opted to delay the start of mass production and revise the initial capacity target downwards, although specific revised figures have not been disclosed.
Due to this adjustment, the revised plan will no longer meet the criteria for participation in a government subsidy programme overseen by Japan's Ministry of Economy, Trade and Industry (METI).
The programme, part of a broader initiative to build domestic supply chains in the green transformation (GX) sector, had required participating manufacturers to begin operations before the end of FY2028 and to produce more than 20,000 units annually.
As Honda's updated plan falls short of these benchmarks, it has voluntarily withdrawn from the subsidy scheme.
Despite this change in course, Honda remains committed to hydrogen as a pivotal element in its long-term environmental strategy.
With more than three decades of experience in developing hydrogen technology and fuel cell electric vehicles (FCEVs), the company continues to view hydrogen as central to achieving its vision of carbon neutrality by 2050 across all products and corporate activities.
Honda has identified four key sectors for the application of its next-generation fuel cell modules: FCEVs, commercial vehicles, stationary power generation, and construction machinery.
The company aims to expand its hydrogen-related ventures and ultimately establish hydrogen technology as a core pillar of its future business portfolio.
While the timeline and scale of production may have changed, Honda's broader commitment to decarbonisation and sustainable innovation remains unchanged.
The revised plan reflects a more cautious but still forward-looking approach to the challenges and opportunities presented by the global shift to clean energy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
3 days ago
- New Straits Times
Big automakers report US sales jump on pre-tariff consumer surge
NEW YORK: Several leading automakers including Detroit giants General Motors and Ford reported increased US car sales in the second quarter on Tuesday as consumers fast-forwarded purchases ahead of US tariffs. Sales were particularly brisk early in the quarter as expectations of US President Donald Trump's coming tariffs dominated the news. Besides the US companies, Japanese automakers Toyota and Honda and South Korean brands Kia and Hyundai all reported increased sales compared with the 2024 stretch. "They were able to capitalise on the tariff-induced fear and that drove sales, especially in the early part of the quarter," said Garrett Nelson, equity analyst at CFRA Research. While the auto industry has been near the centre of Trump's efforts to reset global trade, consumers have yet to see significant price increases due to tariffs. Featured Videos That is because companies have relied on existing inventories that include vehicles imported before tariffs took effect. Prices are expected to rise more in the second half of 2025, but market demand and supply forces could constrain such hikes, analysts said. GM notched a 7.3 per cent rise in vehicle deliveries to 746,588 behind a continued solid performance in pickup trucks and SUVs, as well as good sales of models geared towards customers seeking affordable vehicles. These include the Chevrolet Equinox and Chevrolet Trax, a lower-priced vehicle imported from South Korea. Ford, meanwhile, scored a 14.2 per cent jump in sales to 612,095, reflecting the boon from a popular programme that offered customers employee pricing on many models. Most of Ford's leading vehicles saw higher sales, including the best-selling pickup F-series, as well as the Ford Explorer SUV. While Ford had lower sales of its all-electric F-150 Lightning Truck and the Mustang Mach-E, it reported a jump in hybrid vehicle sales. Higher sales had been expected for both companies, but the increases were slightly more than projected by analysts at At Toyota, sales jumped 7.2 per cent to 666,470 autos, with double-digit gains in several vehicles, including the Toyota Camry sedan and the Toyota Tacoma pickup truck. Honda, Kia and Hyundai reported quarterly sales increases of between five and 10 per cent. But Nissan reported a 6.5 per cent drop in quarterly sales to 221,441, while Jeep-owner Stellantis was projected by Edmunds to have a 12.8 per cent drop to just over 300,000 vehicles. The United States imposed 25 per cent tariffs on imported finished cars in early April. The Trump administration also enacted a 25 per cent tariff on imported auto parts in early May, although White House officials allowed a two-year grace period and stipulated that automakers would not face duplicative tariffs due to a 25 per cent levy on imported steel and aluminium. While retail car prices have not risen significantly, analysts at Cox Automotive last week pointed to a recent ebbing in dealer incentives as evidence of a somewhat tighter market. Cox Automotive chief economist Jonathan Smoke has projected an eight per cent rise in prices due to tariffs, adding that "we don't think consumers or fleet buyers are able and willing to accept that added cost," he said at a briefing last week. Smoke predicted that uncertainty about the economy and whether the Federal Reserve will cut interest rates could lead many buyers to defer purchases. Nelson said automakers have to be "very careful" with price hikes. "Things have cooled off from where they were at the beginning of the quarter," he said. "Everything we're seeing suggests that consumers are still very price sensitive."
The Sun
4 days ago
- The Sun
Honda scales back fuel cell production plans in Japan
HONDA Motor Co., Ltd. has announced a significant revision to its previously disclosed plans for a dedicated fuel cell module production facility in Moka City, Tochigi Prefecture, Japan. The changes come in response to recent shifts in the global hydrogen market, prompting the company to reduce the intended production capacity and postpone the plant's operational launch. Initially, Honda intended to repurpose part of its former Powertrain Unit Factory in Moka for the exclusive production of its next-generation hydrogen fuel cell modules. This facility was to commence operations within the fiscal year ending 31 March 2028 (FY2028) and was projected to have an annual production capacity of 30,000 units. Preparatory work for the project had already begun. However, a reassessment driven by evolving conditions in the hydrogen energy landscape has led Honda to scale back the scope of its production ambitions. The company has opted to delay the start of mass production and revise the initial capacity target downwards, although specific revised figures have not been disclosed. Due to this adjustment, the revised plan will no longer meet the criteria for participation in a government subsidy programme overseen by Japan's Ministry of Economy, Trade and Industry (METI). The programme, part of a broader initiative to build domestic supply chains in the green transformation (GX) sector, had required participating manufacturers to begin operations before the end of FY2028 and to produce more than 20,000 units annually. As Honda's updated plan falls short of these benchmarks, it has voluntarily withdrawn from the subsidy scheme. Despite this change in course, Honda remains committed to hydrogen as a pivotal element in its long-term environmental strategy. With more than three decades of experience in developing hydrogen technology and fuel cell electric vehicles (FCEVs), the company continues to view hydrogen as central to achieving its vision of carbon neutrality by 2050 across all products and corporate activities. Honda has identified four key sectors for the application of its next-generation fuel cell modules: FCEVs, commercial vehicles, stationary power generation, and construction machinery. The company aims to expand its hydrogen-related ventures and ultimately establish hydrogen technology as a core pillar of its future business portfolio. While the timeline and scale of production may have changed, Honda's broader commitment to decarbonisation and sustainable innovation remains unchanged. The revised plan reflects a more cautious but still forward-looking approach to the challenges and opportunities presented by the global shift to clean energy.
The Sun
4 days ago
- The Sun
Honda Malaysia opens new HR-V bookings for Q3 2025 launch
HONDA Malaysia has officially opened bookings for the highly anticipated New Honda HR-V, ahead of its scheduled launch in the third quarter of 2025. Bookings can be made at all authorised dealerships nationwide as well as through the brand's online platforms. The updated HR-V arrives as a refreshed contender in the B-segment SUV category, reinforcing its position as one of Honda's most successful models in Malaysia. With over 169,000 units sold since its local debut in 2015, the HR-V has long established itself as the country's best-selling non-national B-SUV. For the first five months of 2025, it has continued to dominate sales for Honda Malaysia. Building on its legacy of style, practicality and performance, the latest iteration of the HR-V boasts an enhanced exterior and updated mechanical offerings. The new design presents a bolder and smarter aesthetic, featuring a streamlined minimalist front grille, striking 18-inch two-tone alloy wheels, and a full LED taillight strip that emphasises the vehicle's modern presence. The New HR-V e:HEV RS variant leads the charge with its intelligent hybrid powertrain, combining efficiency with an engaging driving experience. The 1.5-litre e:HEV system produces 131PS and 253Nm of torque, delivering smooth acceleration and responsive hybrid performance. Drivers can choose between three distinct driving modes – Econ, Normal, and Sport – to suit various road conditions and personal preferences. In addition to the hybrid variant, the New HR-V is also offered with a 1.5-litre DOHC VTEC Turbo engine generating 181PS and 240Nm of torque for a more dynamic experience. A naturally aspirated 1.5-litre DOHC i-VTEC engine is also available, producing 121PS and 145Nm, catering to those who favour refined efficiency. Safety remains a cornerstone of the HR-V's appeal. The updated model is equipped with the comprehensive Honda SENSING suite, which now includes Adaptive Driving Beam and Active Cornering Light – features that enhance visibility and further refine the SUV's safety credentials. These additions ensure the HR-V maintains its reputation as a technologically advanced and family-friendly vehicle for Malaysian roads. To complement its enhanced features, the New HR-V will be available in two new bold exterior colours: Phoenix Orange Pearl and Crystal Black Pearl. These fresh finishes add a sporty, premium touch to the SUV, giving buyers more expressive options to match their style. With a strong track record and widespread appeal among urban and suburban buyers, the New HR-V looks set to continue its success story in Malaysia. Interested customers may place their bookings via or through the HondaTouch mobile application.
