Honda Delays EV Targets, Shifts Focus and Resources to Hybrid Models Through 2030

Honda revealed prototypes of two new hybrid models, an Accord sedan and an Acura RDX SUV, during its annual business briefing this week. The vehicles are built on a platform that Honda says will begin launching next year. The Acura RDX was announced earlier this year as Honda’s first SUV to feature the next-gen version of its two-motor hybrid system.

These prototypes mark the start of a major strategic shift for the Japanese automaker. Honda plans to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 31, 2030. The majority will launch primarily in North America, with large-size hybrid models scheduled for North America in 2029.

Honda has revised its previous targets, which called for 20% EV sales by 2030 and 100% EV/fuel-cell sales by 2040. Honda now plans to reallocate more development and production resources into hybrid models.

It will cut the cost of its next-gen hybrid system by more than 30 percent. The Verge reported that these changes form the core of Honda’s revised powertrain strategy.

Honda’s next-gen version of its ADAS is scheduled for launch in 2028. The advanced driver assistance system will appear in more than 15 models over five years. The automaker is reallocating capacity in its Ohio plants to build gas and hybrid vehicles.

It will work with its partner LG to convert part of the EV battery production lines at their joint venture to hybrid battery production. In Japan, Honda is planning to expand its EV model lineup mainly in the mini-vehicle kei car category starting with an electric version of its N-BOX minicar in 2028. Honda will now focus its EV efforts primarily on the kei car segment in Japan.