Honda Unveils New Hybrid Models, Revises EV Goals, and Outlines Global Strategy Shift

Honda revealed prototypes of two new hybrid models, an Accord sedan and the Acura RDX SUV, during its annual business briefing this week, built on a platform that it says will begin launching next year. The RDX was announced earlier this year as Honda’s first SUV to feature the next-gen version of its two-motor hybrid system. Honda also announced it’s dropping the goal of having one-fifth of its sales be EVs by 2030, and for 100 percent of its sales to come from EVs and fuel cell vehicles by 2040. Honda now plans to “reallocate more development and production resources into hybrid models.” Honda is planning to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 31, 2030, primarily in North America, with “large-size models” launching in North America in 2029. It plans to cut the cost of its next-gen hybrid system by more than 30 percent, which, combined with a new platform and electric AWD setup, will improve fuel economy by more than 10 percent, compared to the system it launched in 2023. The next-gen version of its ADAS (advanced driver assistance system) is scheduled for launch in 2028, and will appear in more than 15 models over five years. Honda is reallocating capacity in its Ohio plants to build gas and hybrid vehicles, and said it will work with its partner LG to convert part of the EV battery production lines at their joint venture to hybrid battery production. In Japan, it’s planning to “expand its EV model lineup mainly in the mini-vehicle (kei car) category” starting with an electric version of its N-BOX minicar in 2028. In March, Honda announced it would take a writedown of up to 2.5 trillion yen ($15.7 billion) on its EV investments. Now Honda says its EV-related losses will be “resolved” by 2029, and that it will reevaluate its EV plans in 2030.