Honda Scales Back EV Plans, To Launch 13 Hybrid Cars Beginning 2027
Honda to cut its EV investment and plans to launch 13 new hybrid models from 2027 with 10% improved fuel efficiency and 50% lower production costs.
By Divyam Dubey
Honda Motor has announced a major change in its electric vehicle (EV) strategy, reducing its EV investment from 10 trillion yen to 7 trillion yen by 2030. This decision prioritises hybrid models due to a slowdown in global demand for battery electric vehicles (BEVs) and a corresponding increase in the popularity of hybrids. CEO Toshihiro Mibe cited these market dynamics as the primary drivers for the revised strategy.
Under this updated hybrid strategy, Honda will launch 13 new hybrid cars and SUVs starting in 2027. These models will feature next-generation hybrid systems with over 10% better fuel efficiency compared to current Honda hybrids. More importantly, the cost of these hybrid systems will be cut by more than 50% from 2018 levels, making future Honda hybrid cars more affordable for a wider customer base.
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Honda is achieving this cost reduction by targeting key components such as hybrid car batteries and electric motors. The company is also standardising hybrid parts, improving production efficiency, and collaborating with suppliers. These steps are expected to lower hybrid technology costs by over 50% compared to 2018 and by more than 30% versus 2023 models.
In India, Honda currently offers only one hybrid model — the Honda City e:HEV. The company now plans to bring its new hybrid technology to both small and midsize hybrid cars in India and globally. These upcoming Honda hybrid models will use a lighter platform with improved stability and offer all-wheel-drive options for select variants.
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To support its long-term electrification goals, Honda is developing a flexible supply chain and production system. It plans to use mixed-model assembly lines capable of producing both BEVs and HEVs. This flexibility will help Honda manage production efficiently, respond quickly to market changes, and achieve its revised targets, including 2.2 million hybrid sales by 2030 and a reduced BEV sales forecast of 20%.
