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Honda Motor Co., Ltd. said on Tuesday it will strengthen its focus on its original two-motor hybrid system as part of a global strategy realignment. The company acknowledged that its electric vehicle (EV) sales ratio in 2030 is now expected to fall below the previously announced 30% target due to a market slowdown.
The company aims to improve the fuel economy in next-generation e:HEV models by over 10%, while delivering a driving experience unique to Honda.
At a press briefing in Tokyo, Director, President, and Global CEO Toshihiro Mibe outlined key initiatives centered on electrification and intelligent technologies, while reaffirming Honda’s long-term commitment to achieving carbon neutrality for all products and corporate activities and eliminating traffic collision fatalities by 2050.
Honda said it will further advance its e:HEV hybrid systems across small and mid-size segments to realize the world’s most efficient powertrain. Enhancements include expanding the range where the engine operates most efficiently, increasing the hybrid unit’s driving efficiency, and introducing a newly developed electric all-wheel-drive unit for highly responsive motor control.
To enhance product competitiveness, Honda is also developing a next-generation advanced driver-assistance system (ADAS) that supports vehicle operations like acceleration and steering throughout an entire route as set by the navigation system. The technology is being designed to address the complexities of urban traffic, including varied road users and frequent intersection turns.
With EV adoption slower than anticipated, Honda said it is reassessing its broader EV strategy, including the lineup and the timing of investments such as a planned EV value chain in Canada.
Honda has been at the forefront of developing environmentally friendly vehicle technologies for over three decades, with a distinctive approach that encompasses both electric vehicles and alternative fuel solutions. Their strategy has evolved significantly through the years, balancing various technologies while pursuing a vision of carbon neutrality.
Honda began developing electric vehicles more than 30 years ago. The company’s journey started in 1988, when a team with no prior EV experience began building prototypes using stripped-down Honda CR-X and three-door Civic models. By 1993, Honda exhibited the EV-X concept at the Tokyo Motor Show.
Despite these early electric efforts, Honda’s strategy shifted significantly in the late 1990s. Honda celebrated 25 years of hybrid vehicle production in 2024, with its first production hybrid unveiled in 1999. This marked a strategic pivot, as the company initially intended to develop pure electric vehicles in response to California’s clean air regulations.
The introduction of the Insight hybrid in 1999 signaled Honda’s shift from pure EVs to hybrids and fuel-cell vehicles, which became the company’s strategy for the ensuing decades. This was partially due to concerns about consumer acceptance of limited driving range and charging times.
Honda’s interest in hydrogen technology has been a consistent element of its alternative fuel strategy. Honda has been developing hydrogen fuel cells for nearly forty years and introduced its first hydrogen fuel cell car, the FCX concept, in 1999.
Honda became one of the first companies to focus on hydrogen energy’s potential, beginning fundamental research of fuel cell technologies in the second half of the 1980s, followed by research and development of fuel cell vehicles.
This commitment to hydrogen has continued to the present day. While most automakers focus primarily on battery electric vehicles (BEVs), Honda is placing significant bets on hydrogen technology not just for cars, but for multiple applications.
In 2024, this strategy has reached important milestones: Honda celebrated the start of production of the 2025 Honda CR-V e:FCEV fuel cell electric vehicle at the Performance Manufacturing Center in Ohio – the first production hydrogen FCEV in the United States to combine a US-made fuel cell system with plug-in EV charging capability.
In 2018, Honda agreed with General Motors to develop smaller, more capable lithium-ion batteries. This partnership approach has become integral to Honda’s future EV strategy.
This article first appeared on Autocar
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