Honda Motor Company said during a live briefing Monday evening that Honda Motor Company will launch 30 models of electric vehicles by 2030, with a production volume of more than two million vehicles annually.
The Japanese automaker said it will spend $40 billion (5 trillion yen) on electrification over the next 10 years, which includes building its own electrified chassis and exploring new growth opportunities in space exploration, eVTOL, token robots and more.
Over the next decade, Honda will also invest about $64 billion (8 trillion yen) in research and development, and an additional $80 million (10 billion yen) annually in startups that can help the automaker expand its business and transform from selling products alone. To offer joint solutions, according to Toshihiro Mibe, CEO of Honda, who noted that the company will actively pursue cross-industry collaborations and alliances.
Last month, Honda chose Sony to jointly manufacture and sell electric vehicles.
Kohei Takeuchi, Honda’s senior vice president, said at the press conference that Honda will rely on external financing methods based on need. Last month, Honda said it would issue green bonds denominated in US dollars totaling $2.75 billion, which will be earmarked for the development and production of zero-emissions vehicles. In June 2021, Honda said it would stop using gas-powered cars entirely by 2040.
Honda covered a lot on Monday, including plans to develop batteries, market its small electric car and more, so let’s break down the automaker’s new electrification strategy.
Introduced by crazy cheap Honda electric cars
Honda plans to offer an insanely cheap mini-EV for commercial use priced at $8,000 (one million yen) in Japan by 2024. After that, Honda will begin rolling out small electric vehicles for personal use and SUVs, the company said. Mibe said Honda is offering this vehicle for commercial use first because Japan lacks the charging infrastructure needed for widespread EV deployment.
By the same year in North America, Honda also plans to offer two mid- to large-size EV models — the Honda Prologue SUV and Acura SUV — which are currently being developed with General Motors at cost-competitive prices with ICE.
just last week, Honda announces partnership with General Motors To participate in the development of electric vehicles by 2027 in North America using the Ultium platform from General Motors, which will cost about $ 30 thousand.
The automaker also says it will build a production line dedicated to electric vehicles in North America.
In addition, Mibe has doubled down on Honda’s previous commitment to launch 10 new EV models in China under the e:N series by 2027, with two models going on sale this year. Honda plans to build a dedicated electric car plant in Guangzhou and Wuhan to support production in one of its most important markets.
Honda is also aiming to release two electric sports models, the Specialized and the flagship, by mid-decade, according to Takeuchi, but it’s unclear if these cars will be as affordable as other cars Honda hopes to launch soon.
Honda E: architecture
While Honda will rely on its partnership with General Motors to take advantage of the Ultium architecture and EV platform, the automaker fully intends to build its own architecture by enhancing the capabilities of its software. Honda e: Architecture, which the company plans to introduce in 2026, will be an EV platform that includes the hardware and software layer and is connected to the cloud.
Like many other automakers, Honda sees the potential for the software-defined vehicle to help generate recurring revenue through third-party applications. That’s why it builds an application layer on top of the car’s operating system, which can be constantly updated over the air, according to Mibe.
A potential joint venture for batteries
Honda said it was exploring the possibility of creating a joint venture in North America to produce batteries outside of its partnership with General Motors, but Mibe did not give names. The automaker’s goal is to ensure stable purchase of liquid lithium-ion batteries in the region, as well as in China and Japan, its other two major markets. To support this, Honda aims to strengthen its existing collaboration with CATL in China and to purchase batteries for its small electric vehicles from Envision AESC in Japan.
To accelerate independent battery research and development for solid-state batteries, Honda is investing about $343 million (43 billion yen) in building a demonstration line. Honda hopes to start production by the spring of 2024 and to adopt its next-generation batteries in models introduced after 2025.
Continuing to consolidate business and reduce costs
Mebe said Honda is on track to meet the target of a 10% reduction in global auto production, compared to the cost recorded in 2018. Despite problems such as the pandemic and semiconductor shortages, the company says it has managed to tighten its business structure and hopes to achieve a return on sales of more than 7 percent. %.