Honda's CEO Drops Bold Vision for Electric Vehicles' Future

For the past 20 years, those who use cars for transportation have begun to consider another option for their everyday lives: the electric vehicle.

Transitioning from a conventional car to an electric vehicle might address numerous issues. The most significant one is that operating gasoline-driven automobiles harms the environment—a concern raised by climate change specialists who argue this contributes to global warming and could render Earth far less inhabitable in the future.

💵💰 Don't overlook subscribing: Sign up for their complimentary daily newsletter. 💰💵

Combine this concern with many big vehicle companies making a push towards EVs in the last decade. Elon Musk's Tesla may have had the biggest impact when it released its model S in 2012, along with the announcement of its Supercharger network, making EV adoption a reality for millions of interested drivers.

Over 6.7 million U.S. residents have purchased an EV since 2010, according to the Center for Sustainable Energy Although Tesla’s widely-discussed decline in popularity might lead consumers to believe that electric vehicles (EVs) are just a fleeting fad, statistics indicate otherwise. As of 2024, there were approximately 12.5 million hybrid and fully-electric cars on the roads worldwide. This figure marks a twofold increase from what it was at the beginning of 2020, based on available data. S&P Global Mobility .

Associated: Automotive sector beginning to show initial fractures due to tariffs

However, one major automaker that has seemingly been all about embracing EV technology just backpedaled — and its CEO had some notable things to say about the popular automotive movement that may make you rethink buying an EV (or keeping the one you have).

Honda initiates a strategic shift

On May 20th, which was a Tuesday, Honda did something notable. ( HMC ) CEO Toshihiro Mibe revealed that the automobile firm plans to reduce its projected investment in electric vehicles (EVs) and associated software from 10 trillion yen to 7 trillion yen over the period extending up to 2030.

"Reading the market is quite challenging, but currently, we observe that EVs will make up roughly one-fifth of the total by that time," Mibe stated.

Although one might interpret this shift from Honda as an indication of their lack of faith in electric vehicles, that isn’t entirely true. Instead, what it really shows is that the automotive firm from Japan thinks the uptake of these cars could be significantly more gradual compared to their initial expectations.

"EV investments haven't been scrapped, merely delayed," Mibe informed journalists during an annual business briefing as well.

Connected: Rival of Tesla delivers a discouraging statement for electric vehicle enthusiasts

Mibe also mentioned that Honda anticipates hybrids will account for 2.2 million out of 3.6 million global sales by 2030. Previously, the company had predicted this figure would be around 2 million.

At present, Honda faces additional challenges to tackle. The firm previously announced they anticipate a financial impact of around 450 billion yen ($3 billion USD) on their profits for 2025 due to President Donald Trump’s automobile tariffs. Despite 60% of Honda's manufacturing occurring within the U.S., the remaining 40% is becoming increasingly costly.

Shaky sentiment about EVs

A few years ago, when Tesla’s CEO Elon Musk was at the peak of his influence, he assured everyone that self-driving capabilities for their vehicles were just around the corner and that car owners might also profit from this technology. This led to an increasingly favorable public opinion regarding electric vehicles.

Nevertheless, numerous people have grown disillusioned with Musk following his association with the U.S. government’s Department of Government Efficiency (DOGE). Recently, Musk announced he would withdraw from his commitments with DOGE and refocus his efforts on Tesla, particularly after the electric vehicle firm experienced a significant decline in net profit—dropping by 71% compared to the previous year during the corresponding quarter.

By mid-March, reports started emerging that Tesla owners were selling their vehicles at an unprecedented rate, according to data from the car shopping site Edmunds.

Slowing EV demand isn't just about Tesla, though. Honda is also not the only automotive brand dialing back its initial EV investment. GM has also slowed on its original promise that it would go all-EV by 2035, with GM CEO Mary Barra now saying customer demand will dictate its future plans.

Related: Leaked Tesla policy should infuriate Tesla loyalists

Bagikan Artikel ini