Honda announced its major electrification plan, aiming to invest at least $40 billion by 2030 to roll out hybrid and pure electric vehicles globally. The Japanese automaker hopes that by the end of the decade, 40% of its total sales will come from hybrid and pure electric vehicles. In addition, the automaker believes that despite the gradual growth and increasing emphasis on electric vehicles, vehicles powered by internal combustion engines will continue to be sold even after 2040.
Honda’s investment strategy in electric vehicles has been relatively slow compared with global rivals such as Volkswagen and General Motors, which have poured billions of dollars into developing and manufacturing electric vehicles and batteries. The automaker has established a separate business unit to oversee the development of its electric vehicle and battery business. Honda will also eventually invest in charging stations similar to Tesla’s Supercharger network.
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Meanwhile, Honda Chief Executive Toshihiro Mibe told Reuters that despite the growing focus on electric and electrified transportation, the internal combustion engine could still exist by 2040. “As we move towards carbon neutrality, we are focusing on electrification and fuel cells – two core components of the future of mobility,” Mibe said.
Honda is currently developing its own electric vehicle architecture due to hit the market in 2026, and is developing advanced batteries of its own design for some of those future models. The automaker is reportedly conducting feasibility studies on various technologies, including chargers, flying vehicles, rockets and advanced batteries. Additionally, the car company claims it is developing a new low-carbon e-fuel that could help internal combustion engines hit the market within the next decade or two.
First published date: March 5, 2023 at 13:12 PM CST