In a landmark announcement today, Honda Motor Co., Ltd. outlined its comprehensive electrification strategy, signaling a steadfast commitment to shaping the future of mobility. Director, President, and Representative Executive Officer (Global CEO) Toshihiro Mibe presented a detailed roadmap centered on automobile electrification during a press briefing in Tokyo.
Approach to Electrification Targets: Honda reaffirmed its dedication to electric vehicles (EVs) as the optimal solution for small mobility products like motorcycles and automobiles. The company maintains its electrification target, aiming for EVs and fuel cell electric vehicles (FCEVs) to represent 100% of global vehicle sales by 2040. Honda emphasizes building a robust EV brand and business foundation in anticipation of the EV popularization period, set to commence in the second half of the 2020s.
Structural Reform of Procurement and Production Operations: With a focus on establishing a vertically-integrated EV value chain centered on batteries, Honda aims to reduce battery costs in North America by over 20% by 2030. The company plans to cut overall production costs by approximately 35% while securing enough batteries for the planned production of over 2 million EVs annually.
EV Lineup Strategy: Honda’s flagship EV series, the Honda 0 Series, will debut globally by 2030, featuring seven models catering to diverse needs. Additionally, the company will introduce micro-mobility products equipped with Honda Mobile Power Pack e: (MPP) technology, enhancing the versatility of MPPs.
Financial Strategy: Honda intends to invest approximately 10 trillion yen over the next decade to realize its electrification goals. This investment will support research and development, establish comprehensive EV value chains, and enhance production technologies. The company aims for a return on sales (ROS) of 5% for its EV business by 2030, ensuring profitability and sustainability.
Advancement of Overall Operations with Real-Time Data Linkage: Honda will leverage real-time data to enhance all aspects of its automobile business operations, from planning to after-sales services. By incorporating data from software-defined mobility products, Honda aims to offer personalized products and experiences tailored to individual customer needs, driving innovation and efficiency.
Honda’s electrification strategy underscores its commitment to environmental sustainability and technological advancement. With a bold vision and strategic investments, Honda is poised to lead the way toward a carbon-neutral future in the automotive industry.
