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Toshihiro Mibe, Honda’s CEO, has announced ambitious plans to increase the company’s investment into EVs, aiming to double it to USD64 billion by 2031. This increased funding will be allocated towards key initiatives, including reducing production costs of Honda’s next-generation EVs, expanding its battery manufacturing capabilities, and introducing a new lineup of seven EV models by 2030. This aligns with its ambition to reach 40% EV and FCEV of global sales by 2030 and 100% EV and FCEV sales by 2040.
What does it plan to do?
Initially, Honda had earmarked USD32 billion for investments into EVs through to 2031. However now it has increased this figure to USD64 billion. Out of this total investment, Honda plans to put USD38.6 billion into EV production and another USD12.9 billion into battery operations and software development, which includes AI advancements.
By creating a vertically-integrated EV value chain centred around batteries, Honda plans to reduce its North American battery procurement costs by over 20% by 2030. Additionally, it aims to establish a competitive business model, targeting a 35% reduction in the overall production cost of an EV.
In line with its global expansion strategy, Honda intends to introduce seven EV models by 2030 globally. However, in China the company will pursue a more aggressive strategy by releasing 10 EV models by 2027.
What has it done already towards its ambitions?
In April, the company unveiled its plans to…
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