Honda Motor is adjusting its electric vehicle strategy in response to declining global demand, opting to place greater emphasis on hybrid vehicles, as announced on Tuesday. Previously, the company aimed for electric vehicles (EVs) to represent 30 percent of its worldwide sales by 2030, but that target has now been revised down to 20 percent. Despite this shift, the demand for Hybrid Electric Vehicles (HEVs) continues to thrive, prompting Honda to plan the launch of 13 hybrid models over the next four years starting in 2027.
- By 2030, Honda intends for HEVs and EVs to achieve a sales ratio of 61:39
- The company aims to achieve carbon neutrality by 2050
- A new ‘H’ logo for EVs, set to be revealed in 2024, will also be adopted for forthcoming HEVs
Honda’s New Hybrid Strategy
Three Hybrid Systems: Two Focused on Fuel Efficiency, One on Performance
The forthcoming hybrid models from Honda will feature small and mid-size e:HEV (Honda’s terminology for Hybrid Electric Vehicles) systems, which promise significant efficiency improvements. By integrating the e:HEV technology with an innovative lightweight platform and a newly engineered electric all-wheel-drive (AWD) unit, Honda aims to enhance fuel efficiency of its upcoming hybrids by more than 10 percent. Notably, the new ‘H’ logo for EVs introduced in 2024 will also be utilized on the new Honda hybrid offerings.
In the North American market, where Honda’s HEVs enjoy considerable popularity, a new hybrid system will be specifically designed to cater to larger vehicles with enhanced performance and towing capacity. This hybrid configuration is anticipated to be rolled out in models debuting in the latter half of the decade. Currently, the Honda City e:HEV stands as the sole hybrid option in India, having been launched in 2022. Moreover, Honda is collaborating with suppliers to lower the costs associated with critical components, such as batteries and motors, and with anticipated high sales volumes, prices could drop by over 50 percent compared to the e:HEV systems available between 2018 and 2023.
All-Electric Honda 0 Series Scheduled for 2026 Release
Level 3 ADAS Features to be Included
Concepts of Honda 0 Series sedan (left) and SUV (right).
The statement from Honda highlighted their unwavering stance that electric vehicles are the optimal solution for achieving carbon neutrality in passenger vehicles. The company remains committed to advancing its initiatives for the EV transition as the timing becomes appropriate.
Honda has confirmed that the rollout of its all-electric 0 Series models in international markets is on track for next year. The 0 Series SUV and sedan prototypes were showcased in the U.S. in January 2025, with the sedan featuring a substantial battery pack of up to 90kWh, offering an impressive range exceeding 482 kilometers. The 0 Series EVs will be equipped with a Level 3 Advanced Driver Assistance System (ADAS), enabling drivers to briefly disengage from steering in specific scenarios. Additionally, Honda is innovating its next-generation ADAS to utilize more compact and cost-efficient components, making it suitable for smaller vehicles.
