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Honda’s Shift Towards Electrification

Recently, Honda has reiterated its ten-year electrification plan. The company's current offering is limited to a region-exclusive low-range urban EV recognized as the Honda e. While the company isn’t last in the EV race, the Japanese automaker is far from a leader.

Moving forward, Honda reports that it will be committing a substantial amount of capital over the next ten years, dedicated to improving its electric offerings. The company is allocating 5 trillion yen (~$39 billion) for use in research & development and additional investments to accelerate the electrification process. Ultimately, this plan culminates in offering 30 EVs globally by 2030 with an annual production of over 2 million units.

The Details

Along with the commitment, Honda presented some near-term plans. Regarding their battery procurement strategy, they will continue to work with each of their current partners. In the US, Honda will receive batteries from General Motors, CATL in China, and Envision AESC in Japan.

By Spring 2024, Honda hopes to have its own battery facility producing next-generation solid-state batteries. Also in 2024, we will begin to get our first taste of Honda’s new electric vehicles. The general plan for each region is as follows:

●      North America. Two EV SUVs co-developed with GM by 2024. One is the recently announced Honda Prologue, and the other is Acura branded.

●      China. Ten new EV models by 2027

●      Japan. First commercial-use mini-EV model by 2024 to be followed by personal-use mini-EVs and EV SUVs.

While Honda did not go into further specifics about individual models, the automaker showed off two sports cars under sheets. The silhouette of one holds a strong resemblance to the Honda/Acura NSX, which many feel would do well in the electric age.

By 2027, Honda plans to leverage its partnership with GM to produce electric cars priced competitively with their gasoline-powered counterparts. Two dedicated EV plants are being designed for China and one in North America.

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