Honda cuts EV investment by $21 billion, shifts focus to hybrids
Honda is dialing down its electric vehicle (EV) ambitions, slashing EV-related investments by about 30%, and also recorded a $1.7 billion loss.
This move reduces planned EV investment from $69 billion to $48 billion, a reduction of roughly $21 billion as it tries to regain its edge in the car world.
Executive Vice President Noriya Kaihara called for a "fundamental review" of Honda's strategy, with an updated roadmap expected in the near future.
Hybrid cars to make up the bulk of Honda's sales
Instead of going all-in on EVs, Honda is now betting big on hybrids, aiming to sell 2.2 million hybrid cars in the coming years (about double current hybrid sales).
The company has also lowered its target for fully electric cars to just 20% of global sales in the same period.
Even so, Honda's Ohio hub will produce electric and hydrogen fuel-cell models side-by-side, with new rides like the Acura RSX and Honda 0 Series SUVs still on track for release.
Industry-wide trend
Honda isn't alone here: some rivals are also slowing down their EV rollouts as demand cools off and some automakers face financial pressure.
Many carmakers are shifting focus from full electrics to hybrids in response to what people actually want right now.