Tag - Honda EV shift

Key highlights Honda has scaled back its EV investment, shifting focus to hybrid powertrains due to slowing global demand. The company will launch 13 new hybrid models starting in 2027, featuring next-gen e:HEV technology. Honda aims to reduce hybrid system costs by over 50%, making them more competitive. Honda Motor Company has revised its electrification strategy, prioritizing hybrid vehicles over battery-electric models. The decision comes amid slowing global EV demand, prompting Honda to scale back its EV investment while doubling down on hybrid technology advancements2. Why Honda Is Pivoting to Hybrids Honda initially aimed for EVs to make up 30% of its global sales by 2030, but the company now expects that figure to drop to 20%. In contrast, demand for Hybrid Electric Vehicles (HEVs) remains strong, leading Honda to debut 13 new hybrid models over the next four years, starting in 2027. The company is developing next-generation e:HEV systems, which will offer: 10% improved fuel efficiency over current models. A new electric AWD unit for better performance. Lower production costs, making hybrids more affordable4. Cost reduction and market strategy Honda aims to cut hybrid system costs by over 50% compared to 2018 models, and by 30% compared to 2023 models. The company is working with suppliers to streamline production, ensuring cost-effective hybrid solutions for global markets. For North America, Honda is developing a e:HEV system for large vehicles, offering high towing capacity and strong driving performance. Next-Gen ADAS and future plans The company is also working on next-generation Advanced Driver Assistance Systems (ADAS), which will provide automated acceleration and steering based on navigation inputs. Despite the shift to hybrids, Honda remains committed to EVs, with its 0 Series electric models still on track for a 2026 launch. Also read: Next-gen Hyundai Venue spotted testing once again