Honda Scales Back EV Investment and Targets

Honda is reducing its planned electrification and software investment by 30%, now allocating $48.4 billion through 2031 instead of the originally planned $69 billion, due to slowing global EV demand and changing regulatory and trade conditions. The company cut its 2030 EV and fuel cell vehicle sales target from 30% to about 20% of total sales. Honda now plans to prioritize the launch of 13 new hybrid models between 2027 and 2031, aiming to sell 2.2–2.3 million hybrids annually by 2030. The automaker has postponed a major EV production facility in Canada and is warning of a significant profit decline, partly because of expected U.S. auto tariffs. Despite these adjustments, Honda remains committed to achieving 100% zero-emission vehicle sales by 2040. This strategic shift mirrors a broader industry trend as other automakers also scale back EV plans amid ongoing market uncertainty.