Honda to cut EV investment by 3 trillion yen

The Japanese automaker also lowered the ratio of EVs it aims to sell in 2030 to some 20 % of its total from the previous goal of 30 %.

Honda expects EV demand to slow partly due to the loosening of environmental regulations by the administration of US President Donald Trump. The company plans to put a near-term focus on hybrid vehicles.

Of the 3 trillion yen, the company will trim 1 trillion yen by putting off a plan to start a new EV factory in Canada in 2028 for about two years.

"We will put off large-scale investment until 2030 or later to achieve technological and production capabilities that will enable us to lead the world in electrification," Honda CEO Toshihiro Mibe said at a press conference.

Honda set its 2030 EV sales target at 40 % of its total in May last year, but lowered the figure to 30 % in September.

Mibe said that his firm will maintain its goal of selling only EVs by 2040.

The company raised its hybrid vehicle sales target as a key source of profit during the transition to EVs. It aims to sell 2.2 million hybrids in fiscal 2030, more than double the current level.

Honda plans to make its EVs and hybrids more competitive by introducing advanced driver-assistance features. The company also said it aims to raise its share of the global motorcycle market to about 50 % from some 40 % at present in the long term.

[Copyright The Jiji Press, Ltd.]