Published: Thursday, May 16, 2024
TOKYO – TOKYO, Japan (AP) – Japanese automaker Honda announced Thursday that it would invest 10 trillion yen, or 65 billion dollars, through fiscal 2031 in order to produce EVs around the globe, including the U.S.
Honda, based in Tokyo, said that it hasn’t changed its opinion about EVs as the best solution for small mobility products like motorcycles and cars.
Honda Motor Co. said that by 2030, fuel cell EVs and battery EVs would account for 40% of its global auto sales. It will also have a global production capacity of more than 2,000,000 EVs.
Toshihiro Mize, Honda’s Chief Executive Officer, told reporters that the “0 Series” will be a completely new EV line created from “zero”, in an online presentation.
In 2026, the 0 Series will debut in North America. Seven models will follow in 2030. Honda plans to introduce 10 electric vehicle models in China by 2027. By 2035, Honda expects that 100% of their auto sales will be EVs.
Mibe told journalists: “We won’t wait for anyone else to take on sustainability goals. We will be the first to change our lifestyles and achieve them.
Honda, which produces Acura, Civic sedans, and Gold Wing Tour motorcycles, says that despite some talk about a slowdown of electric vehicles on some markets, this trend is still solid and will continue to grow in the future.
Honda’s commitment to battery- and fuel-cell electric vehicles appears to be at odds with Toyota Motor Corp., which has a more diverse or “multiple powertrains” approach. Toyota focuses on hybrids and models that have engines.
Mibe, Honda’s spokesperson, said that the company will keep hybrids as part of its line-up, while increasing production of EVs and improving battery production. The goal is to have zero accidents.
The 10 trillion yen investment will be split into two parts: 2 trillion yen (13 billion dollars) for software research and development and 2 trillion yen (13 billion dollars) to establish comprehensive EV value chain in key markets like the U.S.A., Canada, and Japan.
The company stated that about 6 trillion yen (about 39 billion dollars) will be spent on “monozukuri” or “the art and craft of making things,” such as building next-generation EV plants, electric motorcycles, and EV models.
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Mibe emphasized Honda’s partnerships with other companies, including the partnership on developing EVs, intelligent driving technologies, and EVs announced by Nissan Motor Co. earlier this year.
Honda announced on Wednesday that it had signed an agreement with IBM for the development of computer chips and software to be used in future vehicles. This will help Honda meet the demand for improved processing and reduced power consumption.
Mibe stated that “we are moving forward steadily to prepare for electrification”.