Honda ramps up electrification investment in Japan to $65 billion

16 May, 2024

Honda ramps up electrification investment in Japan to $65 billion

Japan's Honda Motor announced a bold move, vowing to double its investment in electrification and software to approximately $65 billion over the next decade, through the 2030 business year. CEO Toshihiro Mibe revealed the ambitious plan during a press conference, emphasizing a total expenditure of 10 trillion yen ($64.88 billion) during this period, doubling the commitment made in April 2022.

Honda, initially lagging in electric vehicles, focused on ensuring battery procurement reliability, cost reductions, and performance enhancements before intensifying its efforts toward software-defined vehicles, Mibe explained. The company recognized the insufficiency of their previous software development budget, thus significantly amplifying it.

Mibe also unveiled the future: a battery-powered vehicle series starting in 2026, promising a cruising range of 300 miles or more, equipped with an ultra-thin battery pack and a newly-developed compact e-axle.

Furthermore, Honda aims to slash battery procurement costs in North America by over 20% by 2030, along with a 35% reduction in production expenses, partially through enhanced parts integration. Despite facing fierce competition in China, Honda remains committed to its global EV rollout, with plans to introduce seven models by 2030.

Honda's recent announcement of an $11 billion investment in EV and battery production facilities in Ontario, Canada, underscores its determination to expand in the North American market.

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