Honda will invest $65 billion in electric vehicles
Honda announced that it has increased its investments in electric vehicle technologies to 10 trillion yen (approximately 65 billion dollars) towards the 2050 carbon neutral target.
According to the statement made by the company, Honda announced its future plans at the global meeting it held regarding its electric transition initiatives and investment strategy.
Taking a long-term approach to the electric vehicle trend, the company will make its investments under three main headings. These topics were determined as “Introduction of electric vehicles that will be offered only under Honda’s own brand”, “Creation of a comprehensive battery-focused electric vehicle value chain” and “Development of electric vehicle production technologies and facilities”.
Within the scope of the plan, it is aimed to invest 6 trillion yen in the new generation factory system and new vehicle design, 2 trillion yen in software R&D and 2 trillion yen in battery production. The company announced that it plans to reduce the cost of batteries by 20 percent and the production cost of electric vehicles by 35 percent with these investments.
Honda expects its electric vehicle (EV) and fuel cell electric vehicle (FCEV) product range to constitute 40 percent of global automobile sales by 2030, and plans to produce more than 2 million electric vehicles during this period.
Additionally, the company’s goal of electrification, which is for EV and FCEV solutions to account for 100 percent of global vehicle sales by 2040, remains unchanged.
7 models will hit the roads globally by 2030
At the meeting, it was stated that 7 models from the Honda 0 Series, which symbolizes how the company has undergone a major transformation in line with its electrification strategy, will hit the roads globally by 2030, from mini vehicles to large sports vehicles.
On the other hand, the company also announced that it will introduce 2 models in 2024 and 4 models in 2026, using the “Honda Mobile Power Pack e” (MPP), a replaceable battery pack, within the scope of its electric motorcycle investments.
Maintaining its belief that electric vehicles are the most effective solution for small transportation products such as motorcycles and automobiles, the company has also included large transportation vehicles such as aircraft and large sea vessels within the scope of its electric vehicle investments.
The company announced that they evaluated sustainable aviation fuel (SAF) and e-fuel as a high-potential solution in terms of range in order to achieve “zero environmental impact” in these major transportation products within the scope of their investments.