Honda Will Invest $65 Billion To Accelerate EV Ambitions

Honda revealed its momentous plan to invest 10 trillion yen (US$65 billion) over the next decade in its electric vehicles (EVs). The investment will extend through fiscal 2031 and underlines the company’s goal to power its next-generation EVs. 

During a briefing in Tokyo, Honda’s Chief Executive Officer Toshihiro Mibe outlined the company’s electrification plans including seven new EV models globally by 2030 with two EV models aimed for the Chinese EV market later in 2024. In addition, Honda will introduce an EV model that has a swappable battery to the Japanese EV market by the end of fiscal 2026.

Furthermore, Honda’s massive investment will be allocated to software to improve mobility along with research and development. Also, the company will establish supply chains in markets such as the U.S., Canada, and Japan. This results in Honda’s goal of having battery and fuel-cell EVs account for 100% of its global sales by 2040.

Upcoming Honda EVs

Honda’s 0 Series, debuting in 2026, will serve as the company’s central plan for its strategic vision, where their estimated range will be over 300 miles according to Honda. Among Honda’s upcoming EVs, two have been revealed earlier in the year at the CES with the Saloon and Space-Hub models. The Saloon model appears in a sedan build and the Space-Hub model appears in a minivan build. 

Particularly, the Saloon is posed as Honda’s flagship EV model with its appearance featuring a futuristic design that makes it stand out. In terms of details of Honda’s upcoming EVs, the company also unveiled a series of small-size EVs for certain regions in Japan, personal mini-EV models in 2025, and other small EVs that contain what Honda states possesses the “joy of driving” in 2026. 

Honda’s EV Supply Chain

Honda’s strategy has also extended beyond investments with its plans to establish a vertically integrated EV value chain while advancing EV production technologies and plants according to Honda. In efforts to do this, the company has started in-house production with GS Yuasa for EV batteries

Interestingly, Honda recently announced its $15 billion investment to construct several EV plants in Canada. Notably, Honda is also aiming to cut down battery procurement costs in North America by over 20% while securing a sufficient amount of batteries for around 2 million EVs annually. 

Investing In Honda’s EV Future

This major $65 Billion investment for Honda will certainly support the company’s plans to boost its EV production and expand its EV lineup. With Honda dedicating itself to making big milestones in the global EV market, the competition will get even more challenging as Honda will be one of the many automakers delivering its mark in the EV industry. As electric mobility is being increasingly focused on by members of the automotive landscape, Honda’s strategy will shape its current state to new avenues. 

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