Honda Revises 2040 EV Sales Target After Posting First Net Loss

Honda Motor last week withdrew its 2040 target that all new vehicle sales would be electric or fuel-cell models. ” The company had committed trillions of yen to EV development, battery plants, and a Canadian supply chain. It also invested in the Afeela software-defined vehicle project with Sony Group.

Honda is now reducing EV spending, delaying factory projects, and shifting resources back to hybrid models.

Motor posted losses for the second consecutive year.

Toyota Motor expects a decline in annual profits. Both firms have increased cooperation with Chinese suppliers to lower costs.

Mobility said Chinese automakers are the main cause of declining Japanese market share. BYD showed a battery that charges from 10 percent to 97 percent in nine minutes at the Beijing auto show. Chinese firms can bring new models to market in under two years, compared with four to five years for Japanese programs.

Toyota chairman Koji Sato stated there is “complete agreement on the sense of crisis” facing the industry. Japanese companies retain advantages in reliability and service networks, especially in developing markets, and are expanding partnerships with Suzuki, Mazda, Subaru, and NTT.