Honda Motor is revising its electric vehicle strategy due to slowing global demand, shifting its focus more towards hybrids, the company said on Tuesday. While its earlier goal was for EVs to make up 30 percent of worldwide sales by 2030, that target is now expected to drop to 20 percent. However, demand for Hybrid Electric Vehicles (HEVs) remains strong, prompting Honda to debut 13 such four-wheelers over four years from 2027.
- By 2030, Honda targets a 61:39 respective sales split between HEVs and EVs
- It aims to become a carbon neutral brand by 2050
- The new ‘H’ logo for EVs revealed in 2024 also to be used for upcoming HEVs
New Honda hybrid strategy
3 hybrid systems: 2 focused on fuel efficiency, 1 on performance
Depending on the model, the upcoming cars will feature small and mid-size e:HEV (in Honda speak) hybrid systems. By combining the e:HEV system with a new and lighter platform, and a newly developed electric AWD unit with precise motor control, Honda aims to boost the fuel efficiency of its upcoming hybrid models by over 10 percent. Interestingly, the EV-exclusive ‘H’ logo revealed in 2024 is also going to be used in the upcoming hybrid Honda models.
For the North American car market, where Honda HEVs are extremely popular, a new hybrid system will be developed. It will be built for large-sized vehicles, and boast high performance and towing capability. This hybrid setup may be introduced to the cars arriving in the latter half of this decade. The Honda City e:HEV, which was launched in 2022, is the brand’s only hybrid offering currently in India. Honda is also working to reduce the costs of key components like batteries and motors by collaborating with suppliers, and with high sales volumes, the company expects prices to drop by more than 50 percent compared to the e:HEV systems of 2018 and 2023.
All-electric Honda 0 Series 2026 debut on track
Level 3 ADAS to be on offer
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Honda 0 Series sedan (left) and SUV (right) concepts.
“There is no change in the Honda position that EVs are the optimal solution to achieve carbon neutrality of passenger vehicles. Therefore, Honda will steadily carry out initiatives being undertaken to prepare for the future EV shift at the appropriate timing,” stated the car brand.
Honda confirmed its all-electric 0 Series models to be introduced in international markets next year remain on schedule. It showcased 0 Series SUV and sedan prototypes in the US in January 2025, of which the latter featured an up to 90kWh battery pack with a estimated range of over 482km. The Honda 0 Series EVs will come equipped with a Level 3 ADAS suite, which allows the driver to take their hands off the steering wheel in certain situations. Additionally, Honda is developing its next-generation ADAS system with components that take up less space and are cost-effective, making it suitable for use in smaller vehicles.
Also see:
Honda Cars India looking to localise strong hybrids
