A New Spacious Honda Hybrid is Set to Arrive in America Following a Reevaluation of EVs | Carscoops

      The company is significantly reducing its electric vehicle investments by 30 percent to redirect more attention to hybrids.

      Honda is decreasing its electrification spending from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion).

      The focus will be on hybrids, with plans to release 13 new models and aim for 2.2 million sales by 2030.

      Additionally, it is developing advanced ADAS to improve the competitiveness of both EVs and HEVs.

      As several automakers reevaluate their EV strategies in light of market realities, Honda is also modifying its electrification plans. President and CEO Toshihiro Mibe recently revealed major alterations to the company’s strategy, including a considerable cut in its ambitious sales projections and, more critically, its investment in electric vehicles.

      Slower-than-anticipated EV adoption has been a major reason for this change. Although Honda considers electric vehicles to be the most viable long-term path to carbon neutrality by 2050, the actual adoption rate has fallen short of predictions. A blend of changing environmental regulations and adjusting trade policies has hindered EVs from achieving the breakthrough many anticipated.

      Adjusted Projections

      Honda now projects that electric vehicles will account for less than 30% of its global sales by 2030. Consequently, the company is reducing its planned investment in electrification from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion) by 2031. Part of this cut is due to the delay of a major EV investment initiative in Canada.

      Moreover, Honda is implementing a new mixed production system that accommodates both EVs and HEVs, with the added flexibility to adapt production among various factories. This will come alongside a “resilient supply chain strategy” designed to adjust based on market variations in different locations.

      Next-Generation Hybrids

      With hybrid demand expected to grow as the decade progresses, Honda intends to launch 13 next-generation HEV models globally between 2027 and 2031. These hybrids will feature a redesigned “H” emblem, previously associated only with EVs. The company aims to achieve 2.2 million annual HEV sales by 2030, contributing to an overall sales increase beyond the anticipated 3.6 million units in 2025.

      Honda's two-motor e:HEV hybrid system will also see enhancements, offering improved efficiency and better packaging. A new all-wheel-drive (AWD) unit will further boost performance. The next-generation hybrid system will be 30% cheaper to manufacture compared to the existing version, making it a more affordable option for the company.

      Significant Plans for North America

      For North America specifically, Honda is developing a new hybrid system designed for larger vehicles, emphasizing high performance and towing capabilities. This powertrain is expected to debut in upcoming models, including a large SUV. While it has not been named, it could potentially replace the Pilot.

      Advanced ADAS

      The company is also investing significantly in advanced technologies like driver-assistance systems (ADAS). Aiming to improve the competitiveness of both EVs and HEVs, the next generation of Honda’s ADAS will provide a higher level of autonomy for both urban and highway driving. These systems are anticipated to be launched around 2027 across a variety of EVs and HEVs in North America and Japan.

      In addition to its own next-gen ADAS, Honda will collaborate with Chinese startup Momenta Global Limited to develop systems tailored for all future Hondas launching in China.