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Honda announces $65 billion investment in electric vehicles by 2030

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Tokyo, Japan – Honda revealed on Thursday its ambitious plan to double its investment in electric vehicles (EVs) to $65 billion by 2030, aligning with its goal to transition fully to electric cars.

The Japanese auto giant is aggressively pursuing its target of achieving 100 percent EV sales by 2040, a goal set three years ago. In a landmark move in April, Honda announced the largest automotive investment in Canada’s history: an $11 billion EV battery and vehicle assembly plant.

Honda is alwso collaborating with Sony on EVs and exploring a partnership with rival Nissan as they navigate a transformative period in the automotive industry. Analysts suggest this substantial investment aims to help Honda catch up with Chinese competitors like BYD, which have surged ahead in the global EV market.

“Honda is planning to invest approximately 10 trillion yen in resources… through 2030, when the period of full-fledged popularisation of EVs is expected to start,” the company stated. This marks a significant increase from its previous allocation of five trillion yen for EV technology in the medium term.

Honda aims to reduce overall production costs by about 35 percent and lower battery procurement costs in North America by over 20 percent compared to current levels by 2030. The company projects that electric and fuel-cell vehicles will make up 40 percent of its global sales by the end of the decade.

The announcement comes as the world’s leading automakers increasingly prioritize electric and hybrid vehicles amidst growing demand for environmentally friendly models. However, the EV market faces challenges, including high prices, concerns over reliability and range, and a lack of charging infrastructure.

In 2023, China surpassed Japan as the world’s largest vehicle exporter, buoyed by its dominance in electric cars. Despite this, Honda’s recent earnings report indicates an expected increase in vehicle sales in the United States and Japan for the current financial year, although sales in other parts of Asia are projected to decline.

Honda plans to produce around two million EVs annually by 2030. In comparison, its larger rival Toyota aims to sell 1.5 million EVs per year by 2026 and 3.5 million by 2030. Toyota is also focused on mass-producing solid-state batteries, a technological advancement that could lead to faster charging times and greater range.

Honda’s strategic investments underscore its commitment to leading the charge in the rapidly evolving EV landscape.


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