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In a detailed business briefing on May 20, 2025, Honda Motor Co., Ltd. unveiled a strategic pivot in its automobile electrification plans, responding to a shifting market landscape. President and CEO Toshihiro Mibe addressed the press in Tokyo, outlining how the company intends to tackle a slowdown in the electric vehicle (EV) market while staying committed to its ambitious goals of carbon neutrality and zero traffic collision fatalities by 2050.
Key Highlights:
- Strategy Shift: Honda is recalibrating its electrification approach to suit current market conditions.
- Tech Innovation: The focus is on next-generation Advanced Driver Assistance Systems (ADAS) for EVs and hybrids (HEVs).
- Hybrid Push: With rising HEV demand, Honda is prioritizing next-gen hybrid models as a bridge to EVs.
- EV Targets Revised: The 2030 global EV sales goal drops below the earlier 30% target.
- Flexible Production: Honda is building adaptable systems to balance EV and HEV output.
- Motorcycle Success: Record sales signal growth, especially in emerging markets.
- Financial Tweaks: Electrification investment shrinks from 10 trillion yen to 7 trillion yen.
Honda’s realignment reflects challenges like slower EV adoption, regulatory shifts, and trade policy changes. The company aims to bolster competitiveness by integrating intelligent technologies and making them more affordable. A key move is the development of advanced ADAS, set to enhance driving safety and comfort across urban and highway settings. This tech will debut in major EV and HEV models in North America and Japan by 2027, with a tailored version for China via a partnership with Momenta Global Limited.
With HEVs gaining traction, Honda plans to roll out 13 next-generation hybrid models globally from 2027, targeting 2.2 million HEV sales within a total of 3.6 million units by 2030. Meanwhile, EV ambitions remain intact, with the Honda 0 Series launching next year, promising personalized driving experiences.
To stay agile, Honda is adopting flexible production lines and resilient supply chains. Its motorcycle business, hitting a record 20.57 million units sold in FY2025, eyes further expansion in the Global South. Financially, Honda trimmed its electrification budget but expects to generate 12 trillion yen in cash, ensuring robust shareholder returns of over 1.6 trillion yen.
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