Honda announces plans to invest $65 billion in EVs as Japanese auto giant prepares to embrace an all-electric future while also restructuring some of the ways that it intends to achieve this goal.
Honda introduced its 0 Series concept vehicles at CES.
Honda is still out to show that it’s taking EVs very seriously. The company has embarked on an aggressive campaign to enhance its presence in this market and while Honda is restructuring the way that it’s approaching some of these goals, a new investment strategy is focusing on doubling the company’s commitment to EVs.
But can this aggressive powerplay achieve the results Honda needs at a time when sales in the EV segment are beginning to cool down in the face of multiple economic factors? The company thinks it can and is eager to show the world that it can still achieve 100% of its EV sales from EVs
Newest investment strategy focuses on solidifying gains
Honda is hoping that an infusion of new money will boost its EV plans
When Honda recently unveiled plans for the 0 Series at CES, the firm said that the EVs and the two concepts that previewed them (Space-Hub and Saloon) would be built on five core pillars to make them stand out in the marketplace while also showing Honda’s pride and spirit.
However, an unseen sixth pillar in this plan is cold hard cash and Honda is aggressively pursuing a plan to make sure their EV projects get plenty of funding with the company revealing that it plans to double its investment in electric vehicles to $65 billion by fiscal year 2031. The investment will be split into two parts with $13 billion being dedicated to research and development while another $13 billion is dedicated to setting up key EV sales chains in certain markets.
“Honda has not changed its belief that EVs are the most effective solution in the area of small mobility products such as motorcycles and automobiles,” the Tokyo-based company said in a statement.”
Honda’s focus on small mobility solutions extends far beyond cars and includes growing sub-segments like the motorcycle market where the firm has a strong presence. EV motorcycles have grown in popularity in the past few years, and they have emerged as an intriguing sales play in the broader EV market.
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Restructuring partnerships
Honda isn’t offering many technical details about its new 0 Series models beyond noting they will use new “high-density” batteries
Honda’s move to aggressively fund its EV projects comes as the company is rethinking the way that it approaches some aspects of achieving this goal. That includes ending a partnership with General Motors to end the co-development of affordable EV vehicles with the Acura ZDX and the Honda Prologue being the lone fruits of that brief partnership in action.
But while its association with GM is ending, the company is still pursuing partnerships with other companies to reach its EV targets. That includes a recently inked collaboration with IBM to work on computer chips and software for EVs that cuts down on power consumption while building on a separate EV partnership with Nissan that was announced earlier this year.
Honda is also not letting the cool down in EV sales affect it either with the company still determined to achieve 100% of its vehicle sales by 2030. That will be preceded by several model rollouts over the next few years including the U.S. rollout of the 0 Series in 2026 as well as the global launch of seven different EV models by 2030.
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