Summary
– Honda maintains its commitment to EVs as the most effective solution for small mobility products
– The company aims for EVs and FCEVs to represent 100% of global vehicle sales by 2040
– Honda plans to reduce battery costs by more than 20% and overall production costs by approximately 35%
– The Honda 0 Series, a global EV series, will consist of seven models by 2030
– Honda plans to invest approximately 10 trillion yen in resources by FY2031, focusing on bold investments for future growth and shareholder returns
Article
Honda has a strong commitment to electrification and aims to have EVs and FCEVs represent 100% of its global vehicle sales by 2040. The company plans to invest approximately 10 trillion yen in resources over the 10-year period leading up to 2031 to prepare for the full-fledged popularization of EVs. Honda will focus on building a vertically-integrated EV value chain with a central focus on batteries to reduce costs and secure enough batteries for planned production. The company will introduce the Honda 0 Series, a global EV series, with seven models to be launched globally by 2030, ranging from small to large size.
Honda’s approach to electrification includes the introduction of attractive, thin, light, and wise EVs that offer sporty driving and advanced technologies to enhance the driving experience. The company plans to launch the Honda 0 Series with innovative features such as a low vehicle height, a short overhang, lightweight body frames, advanced power units, and an original vehicle OS. Honda will also adopt an electric all-wheel drive system to improve driving performance and stability. The company aims to achieve a return on sales of 5% for its EV business by 2030 and reduce overall production costs by approximately 35% through advanced production technologies and facilities.
In terms of its EV lineup strategy, Honda will strategically launch EV models globally, starting with the Honda 0 Series models and expanding into other markets such as China. Honda plans to introduce a total of 10 Honda-brand EV models in China by 2027 and make EVs represent 100% of its automobile sales in China by 2035. The company will also introduce small-size EVs and hybrid-electric models to cater to different market demands. Honda will invest in software-defined vehicles and comprehensive EV value chains to support its growth in the EV market.
Honda’s financial strategy includes securing resources for investments in EV technology and capital allocation to support the company’s electrification strategy. The company plans to invest approximately 10 trillion yen over the next 10 years, with a focus on R&D, EV value chains, and Monozukuri (art of making things) areas. Honda aims to generate cash flow through its ICE and HEV businesses to fund its investments in EVs and other new areas. The company will continue to make stable dividend payments and share buybacks to ensure shareholder returns while pursuing bold investments for future growth.
Overall, Honda is committed to advancing its electrification initiatives and investment strategy to achieve its goal of carbon neutrality by 2050. The company’s focus on building a strong EV brand, developing innovative EV models, and establishing a comprehensive EV value chain demonstrates its dedication to transforming the automotive industry towards a more sustainable future.
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