Honda plans a $20 billion pivot to hybrids as EV sales slow
Briefly

Honda is shifting its strategy to focus on hybrids amidst a global slowdown in electric vehicle (EV) sales, decreasing its planned EV investment by 30% to $48.4 billion. CEO Toshihiro Mibe cited changes in regulations and slower-than-expected EV growth as reasons for this pivot, leading to a revised sales target for EVs by 2030. The automaker plans to launch 13 new hybrid models by 2027 with a sales goal of 2.2 million hybrids annually. This decision follows the failure of a merger with Nissan, contributing to the need for a new direction.
Honda's new strategy focuses on hybrids amidst declining EV demand, redirecting $20 billion investment to stabilize its market position while committing to zero-emission goals by 2040.
CEO Mibe stated, 'Due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30%.'
Honda aims to introduce 13 new hybrid models by 2027, targeting sales of 2.2 million hybrids annually by 2030, showcasing a significant shift in strategy.
The collapse of a proposed merger with Nissan signals additional challenges for Honda, highlighting the need for strategic adjustments in a turbulent auto market.
Read at Business Insider
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