Honda puts hybrids first as electric cars take a back seat by 2030

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Honda revises its 2030 electrification targets

Honda is the latest Japanese manufacturer to adjust its electrification plans, pushing fully electric cars into a less prominent role.

The company’s original aim - for electric cars to account for 30% of global sales by 2030 - will no longer be pursued. In practical terms, Honda now expects annual electric-car sales in 2030 to be between 700,000 and 750,000 units, far below the two million units previously forecast.

Instead, Honda is doubling down on hybrids. The goal is to double hybrid sales volume to 2.2 million units by 2030. This would sit within total sales that the manufacturer believes will rise above today’s 3.6 million units.

“Unlike what we are seeing with electric cars, demand for hybrids is growing. In the end, the price of electric vehicles is still equal to or higher than existing hybrids or plug-in hybrids. That is the main reason customers are not adopting electric cars.”

Toshihiro Mibe, CEO of Honda

Honda to deliver more hybrids

To support this new phase, Honda will upgrade its e:HEV hybrid system, pairing it with a new, lighter platform, and it is also developing a new AWD (All Wheel Drive) electric drive unit. The target is bold: cut fuel consumption by more than 10%.

Honda also expects to lower production costs for the next-generation hybrids by more than 30% compared with the system introduced in 2023 and used across current models. To achieve that, alongside the planned increase in volumes, Honda is counting on greater manufacturing efficiency, more component sharing between models, and new partnerships with suppliers.

The new generation begins arriving in 2027, and by 2030 Honda will launch 13 new hybrids globally. In North America - one of Honda’s key markets, where larger vehicles are preferred - the brand will develop a dedicated hybrid system.

What about the electric cars?

Even with electric cars taking a back seat in the near term, Honda still sees them as crucial longer-term: “We believe electric vehicles are the ideal solution to achieve carbon neutrality in the long term,” the statement says.

Evidence of that commitment is the arrival, as early as next year, of Honda’s new electric-car line, the 0 Series. Even so, the investment plan for electric vehicles has been revised: from the 10 trillion yen (€61.4 billion) announced through 2031, Honda has reduced the figure to seven trillion yen (€43 billion).

Among the projects now on hold is the plan to build a dedicated electric-vehicle production chain in Canada - postponed indefinitely.

Last year, Honda sold 64 444 electric cars worldwide, three times more than in 2023 (19 134 units).