Honda's Electrification Plan: 100% Electrification of Global Sales by 2040, Investment of 10 Trillion Yen

On May 16, Honda Global CEO Toshihiro Mibe held a press conference in Tokyo, Japan, on the topic of Honda car electrification. The press conference content included electrification targets, battery optimization reform, new car lineup, and financial budget.

Global environmental development is highly valued, and countries are setting electrification targets. For example, the Thai government plans to achieve 30% of car sales replaced by electrified cars by 2030. Honda also announced at this press conference that it will firmly promote the electrification strategy and promises to achieve a global car sales composed of 100% electric cars and fuel cell cars by 2040.

The battery is the core component of an electric car, and its performance and cost directly affect the competitiveness of an electric car. Honda will commit to creating a vertically integrated electric vehicle value chain with the battery as the core, and expects that the cost of battery procurement in North America will be more than 20% lower than it is now by 2030. Honda stated that it has taken active measures to ensure sufficient battery supply to meet the expected demand for batteries required to produce about 2 million electric cars by 2030.

In order to meet the wave of popularization of electric vehicles around the world, Honda will take Honda 0 series electric vehicles as the main force to accelerate the global electrification strategy layout, and by 2030, 7 models of the 0 series will be launched globally. At the same time, for the popular hybrid models, Honda will continue to enrich the global product line to provide users with more diversified choices.

Honda has launched a 10-year investment plan of 10 trillion yen, of this, 2 trillion yen is used for software-defined mobility; 2 trillion yen is used to establish an integrated value chain of electric vehicles in markets such as the United States, Canada, and Japan; 3 trillion yen is used for R&D expenditure and 3 trillion yen is used to assist the development of Monozukuri (the art of making things).