According to Zhitong Finance, Honda Motor Company (HMC.US) CEO Mibe Toshihiro said on Thursday that by 2030, the company will invest 10 trillion yen (US$64.8 billion) in an effort to transition to electrification. Mibe told reporters that Honda also plans to reduce the manufacturing cost of electric vehicles by more than 30% and plans to reduce battery procurement costs in North America by 20% as part of the company's latest business plan.
He said that by 2030, Honda will launch a total of 7 new electric vehicle models worldwide, and plans that electric vehicles and fuel cell vehicles will account for 40% of its global sales by the same time. “Our goal is to make electric cars with better software than the cars currently on the market,” he said.
Honda is seeking to take back market share in China, where they have been losing to domestic electric vehicle manufacturers. According to discerning Chinese consumers, domestic electric vehicle manufacturers are better able to meet their specific tastes. This has increased the operating pressure on traditional Japanese automakers. Due to declining sales, Honda plans to cut full-time employees at its Chinese plant. As part of its efforts, Honda plans to begin selling two of its newly released Ye series electric vehicles in China later this year. It also plans to be fully electrified by 2040.
Due to rising interest rates and reduced subsidies, global demand for electric vehicles is generally slowing, and Honda and other automakers with hybrid product lines are benefiting. The company's target for hybrid vehicle sales this year is around 1 million units and is laying the foundation for an annual production capacity of 2 million vehicles. However, they also believe that the long-term shift to clean energy will not change.