Japanese auto major Honda has hit the accelerator pedal in its major foray into the production of electric vehicles (EVs). The company, which had earlier this month announced joint plans with General Motors for affordable EVs, today unveiled a rafter of moves in its aggressive move towards its stated goal of phasing out petrol-driven vehicles by 2040.
In a press briefing on its 'Automobile Electrification Business' today, Honda announced that it plans to launch 30 EV models by 2030 with production volume of more than 2 million vehicles a year. The iconic Japanese automaker said that it would spend 5 trillion yen (around $40 billion) over the next 10 years as it focuses on the production of next generation EVs.
And concomitantly, Honda has allocated 43 billion yen (around $3.4 billion) to build a demonstration line for the production of all-solid-state batteries and start demonstration production in 2024.
Honda's complete EV plans
Honda's initial EV thrust will initially focus on North America, China and its home base Japan. In 2024, as announced before, Honda will introduce two mid- to large-size EV models currently being developed jointly with GM. (Honda brand: All-new Prologue SUV, Acura brand: an EV SUV model.) In China, Honda will introduce a total of 10 new EV models by 2027. In Japan, in early 2024, Honda will first introduce a commercial-use mini-EV model. Honda also said it would introduce personal-use mini-EVs and EV SUVs. But did not specify when it will do so.
From 2026, Honda said, it will begin adopting 'Honda e: Architecture', an EV platform that combines the hardware platform and software platform.
Through its alliance with GM, Honda is planning to introduce affordable EVs in 2027, with a cost and range that will be as competitive as gasoline-powered vehicles, starting from North America.
In all, Honda is planning to launch 30 EV models globally by 2030, with a full lineup from commercial-use mini-EVs to flagship-class models, and Honda is planning for production volume of more than 2 million units annually.
Last month, Honda announced it's joining forces with tech giant Sony Group to develop EVs slated to go on sale starting in 2025.
For the record, Honda has sold 32,649 battery-electrics, cumulatively, since marketing its first, the Honda EV Plus, in 1997. Honda sold almost half those EVs, 14,324 units, in 2021 alone. Honda has made a much bigger dent with hybrids, a segment it helped pioneer with the Insight. It has sold 3.91 million cumulatively over the years, including 561,165 gasoline-electrics in 2021.
Honda's battery tech research
Honda, which sources Ultium batteries from GM, said it is also exploring the possibility of creating a joint venture with another company for battery production in North America. In China, Honda will further strengthen our collaboration with CATL. And in Japan, Honda will procure batteries for mini-EVs from Envision AESC.
Honda said it will further accelerate its independent research and development of next-generation batteries. "For the all-solid-state batteries it currently has under development, Honda decided to build a demonstration line, investing approximately 43 billion yen, with a goal to make it operational in Spring 2024," the company said.
Honda aims to adopt its next-generation batteries to models to be introduced to the market in the second half of the 2020s.
In terms of organisational structure too, Honda is fully targeted towards technology and electrification. In the past, Honda divided its organisation by products, namely motorcycle, automobile and power products. However, starting this fiscal year, Honda's stated core areas are: electrified products and services, battery, energy, Mobile Power Pack, hydrogen and software/connected technologies that connect all core areas.
