Automaker Honda Ditches BigEV Plans, Shifts Focus to Hybrid Cars
The US government's decision to cancel incentives for electric vehicles has led to a surge in their costs, prompting Japanese automaker Honda to scrap its plans to develop large EV SUVs for the American market. Instead, the company will focus on producing hybrid models that are more in demand.
Honda is nearing mass production of its all-new pure-electric SUV and sedan variants within the 0-series lineup. The company plans to launch these vehicles by 2026.
Honda's Electric Vision
A rendering of Honda's upcoming electric SUV prototype
A rendering of Honda's upcoming electric SUV prototype
A rendering of Honda's upcoming electric SUV prototype
Honda had initially set a target to launch seven electric vehicles in the US by 2030. However, with its investment in electrification slashed from ¥1 trillion ($11 billion) to ¥70 billion ($660 million) this year, the company is re-evaluating its ambitions.
The reduction in funding has led Honda to prioritize hybrid models, which will result in a smaller EV lineup.
Hybrid Focus: 2027-2031 Launch Plans
Honda plans to launch 13 hybrid vehicles globally between 2027 and 2031, with sales reaching 2.2 million units by the end of 2030. One of these models is specifically designed for the North American market – a large SUV.
A rendering of Honda's upcoming hybrid SUV variant
A rendering of Honda's upcoming hybrid SUV variant
Honda has become more cautious in its electrification plans, considering the current market trends and shifts in consumer behavior. The company will work towards meeting its new goals while also adapting to changing environmental regulations and technological advancements.
