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Honda Motor Plans to Invest More Than $60 Billion on EV Strategy — Update

By Kosaku Narioka


Honda Motor plans to invest tens of billions of dollars on its electric-vehicle strategy through 2030 as part of efforts to boost sales and production in the coming years.

The Japanese automaker said Thursday that it aims to invest about 10 trillion yen ($64.56 billion) on its electric-vehicle and software strategy over the 10-year period through 2030.

Honda said it plans for EVs, including fuel-cell vehicles powered by hydrogen, to make up 40% of its global auto sales by 2030. It also aims to produce more than 2 million EVs by then.

The automaker said it will use the funds on research and development, and on capital expenditures in key markets such as the U.S., Canada and Japan. It is looking to reduce production costs, including those tied to battery procurement. Investments will be also made to electrify the company's motorcycles, it said.

Honda and other Japanese carmakers have long produced hybrid vehicles, but trail behind companies such as Tesla and China's BYD in full battery-electric vehicles.

The Japanese company said that in China, it will introduce a total of 10 Honda-brand EV models by 2027 and set a target to sell only EVs in the country by 2035.

Honda said it remains committed to having electric vehicles, including fuel-cell cars, represent 100% of its global vehicle sales by 2040.

To fund the investments, the Japanese company said it will use cash flows generated by its motorcycle, gasoline-powered and hybrid car businesses. Soon, it will also draw on cash flows from its EV business.

On Friday, Honda reported a 70% rise in net profit for the year ended March thanks to a recovery in its car business. It projected that group car sales will rise 0.3% to 4.12 million units this fiscal year. Chief Executive Toshihiro Mibe said at the time hybrid gas-electric vehicles have been selling quite well and that the carmaker is working with suppliers to boost production.

The carmaker said in April that it will invest the equivalent of about $11 billion in building an electric-vehicle manufacturing plant and an EV-battery plant in Canada.


Write to Kosaku Narioka at


(END) Dow Jones Newswires

May 16, 2024 05:08 ET (09:08 GMT)

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