Honda Pledges $65 Billion To Make EVs Cheaper

Honda has announced that it will invest around $65 billion in electric vehicles through 2030, doubling the commitment it made two years ago. While Honda is aware that current trends indicate buyers are more interested in hybrids than EVs, it predicts that demand for all-electric cars will rapidly increase in the second half of the decade. When 2030 rolls around, Honda wants to be producing more than 2 million EVs, when EVs and FCEVs are anticipated to represent 40% of global sales. Through strengthened supply chains said to be adequate for the planned production of these EVs, Honda predicts the cost of battery procurement to drop by “more than 20% compared to the cost of current batteries” and overall production costs by “approximately 35%.” So, what can we expect over the next few years?

Honda 0 Series Enters Production In 2026

In January this year, Honda attended CES 2024 with two new concepts: Saloon and Space-Hub. These are part of a new range called the Honda 0 Series, which will launch in 2026. The Saloon will be the series’ flagship model, and Honda promises it will be “very similar” to the quirky concept. These new EVs will be developed under the mantra of “Thin, Light, and Wise,” with the Japanese automaker promising to launch “attractive EVs only Honda can offer.” Without its high-revving K-series engines to rely on anymore, Honda will need to differentiate its EVs in new ways.

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“Thin” refers to “a newly-developed compact e-Axle and the world’s top-class ultra-thin battery pack” that will allow the floor and motor minimal encroachment on interior space. Honda also promises “unprecedented styling with a low vehicle height and a short overhang.” The next part of the mantra refers to weight, with Honda recognizing that lighter cars lead to the “joy of driving.” Its EVs will have an all-new power unit that is lighter and thinner, helping reduce overall vehicle weight by approximately 220 lbs compared to early Honda EVs. Finally, “Wise” refers to a new digital user interface that will be “optimized for each individual customer.” How that will be realized exactly remains to be seen, but what we do know is that semiconductor chips in these cars will be customized with AI to enable greater efficiency.

A Single Smart Brain

Unlike most modern cars that use specialized ECUs to control various functions, Honda’s new EVs want to minimize complexity by consolidating multiple individual systems under a core ECU. With this, the automaker expects to offer new features more quickly. Honda is also working hard on improving its Level 3 automated driving technology, which it was the first to put into practical use. The automaker is planning to expand its availability with broader speed ranges so that occupants can commute less stressfully more often.

In a nutshell, Honda will use the first half of this decade to stabilize battery supply costs and the middle of the decade to begin producing these new batteries using a supply chain that “will have the largest scale in North America.” The latter half of the 2020s will be focused on expanding the EV business, including battery reuse and recycling. Honda remains committed to a 100% EV and FCEV lineup by 2040, and while it has been late to the party, it is using this transitional period to prepare the foundations necessary to offer competitively priced and attractive EVs just as the market for electric cars enters its stride.

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