- In a new road map showing Honda’s investment and production plans moving forward, the automaker doubled down on full electrification, re-committing to 100 percent EV and fuel cell (FCEV) sales by 2040.
- The automaker is putting a central focus on battery technology and plans to invest over $60 billion in electrification through 2030.
- Additionally, the company aims to reduce battery costs by more than 20 percent compared to today’s pricing, while also reducing overall production costs by 35 percent.
Selling electric vehicles is hard. At least, it is in the United States where it’s never been harder to buy a single-family home and some people’s commute is equivalent to a small European country. Those roadblocks aren’t stopping Honda, though, with the automaker doubling down on electrification and recommitting to 100 percent EV and FCEV sales by 2040.
All In on Batteries
Despite the slowing market growth in some regions, Honda has no intention of backing away from electric vehicles. The automaker’s plan homes in on battery technology and production. The automaker said Thursday that it aims to invest tens of billions of dollars in its electric vehicle strategy through 2030.
The lion’s share (60 percent) of those investments will go toward the production and development of new electric vehicles and motorcycles. Roughly 20 percent will be channeled toward capital expenditures in key markets such as the United States, Canada, and Japan, while the remaining 20 percent (roughly $12 billion) will be directed toward research and development of “software-defined mobility.”
Targeting 2030
Honda plans for EVs and FCEVs to make up 40 percent of its global sales by 2030. Starting with the recently introduced Prologue electric crossover, Honda is also hoping to produce two million EVs by the same point. Following unsuccessful runs of the Clarity sedan and Fit EV, the 2024 Prologue is Honda’s first real attempt at selling a passenger electric vehicle in the United States.
A new group of EVs called the O-series is scheduled to join the Prologue in 2026, rounding out Honda’s electric portfolio in North America. The first vehicle in the O-series will be based on the Honda Saloon previewed earlier this year at CES and will follow Honda’s “Thin, Light, and Wise” development approach.
We don’t have any specifics for the Saloon-based production vehicle beyond targeted charging metrics allowing it to charge from 15 to 80 percent in less than 15 minutes, but Honda described the production version as “very similar.” We also know the production car will be built on a new dedicated platform for mid-to large-size EVs, which has been developed using some of the previously mentioned development funds.
Jack Fitzgerald’s love for cars stems from his as yet unshakable addiction to Formula 1.
After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn’t afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf.