Honda announces $58b investment in electric cars

Honda, one of the last cabs off the rank in the electric car space, has announced a significant 5 trillion yen (or $58.2 billion) investment into electrification.

According to Honda, the spend will help facilitate the introduction of 30 electric vehicles in markets around the world by 2030, with production outputs set to exceed two million EVs per annum.

The news is a clear indication that Honda will be sinking most of its investment into plug-in products. It’s reported that its overall research and development costs for all models between now and 2030 will be roughly 8 trillion yen, meaning EVs will soak up the majority of spend.

“As far as resource investments over the next 10 years go, we’re going to invest about 8 trillion yen in research and development expenses,” says Honda chief executive Toshihiro Mibe.

Mibe noted that the brand will also continue to focus on hybrid technology. “By no means is this the end of hybrids and the replacement of all hybrids with EVs. We will develop our current hybrids and use them as a weapon in our business.”

While the Japanese marque hasn’t issued too many specifics (nor has it showed off an entire room of electric vehicle concepts, a la Toyota), it has detailed a handful of the models it has coming down the pipe.

It says that it plans to debut 10 new EVs in China by 2027, two new EVs in American in 2024 (the previously revealed Honda Prologue and an upcoming Acura SUV), and three new EVs in Japan (a pint-sized commercial, a kei car, and an SUV).

Some of these products, namely those in the US market, come via Honda’s relationship with General Motors.

One of the more significant milestones is set to come in 2026, which is when Honda says it will “begin adopting” Honda e:Architecture. It’s unclear if this is indicative of the first products based on the platform debuting in showrooms.

Along with words from its chief executive and its numerous pledges, Honda also teased several models as part of the announcement.

The brand showed off a ‘global line-up’ graphic that shows the silhouette of numerous models. Most of these are SUVs and hatchbacks, although there’s also a pick-up. This potentially is the next-generation Ridgeline.

Honda also teased two sports cars in a more detailed teaser image. It states that the two models will be a “specialty” vehicle and a “flagship model”, which will “embody Honda’s universal sports mindset and distinctive characteristics”. Both cars are set to be sold globally.

Honda also used the event to announce it will invest up to 10 billion yen per year in tech start-ups, and it will be placing more emphasis on after-sale products as part of its technology shift. The brand also pointed to hydrogen still being somewhat on the table, with the EV-rivalling technology getting a brief mention.

The announcement follows a hesitant relationship between the brand and EVs. Its Honda e hatch, while lauded in Europe, isn’t offered in any other continent.

“This puts them in good company with a lot of other makers that have made big battery announcements. Ultimately the world is going to leave internal combustion engines behind,” Christopher Richter, an analyst at CLSA, told Reuters.

“Given their size, I am glad they are cooperating with General Motors.”