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Honda's Electrification Strategy
Restructuring of xEV production system and strengthening HEVs
2025/09/03
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Summary
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2025 Business Briefing: Realignment of Honda's electrification strategy
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EVs for the North American market: Cooperation with GM to launch the "Prologue" and "Acura ZDX"
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NEVs for the Chinese market: Joint development of advanced driver assistance technology with Momenta
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EVs for the Japanese market: Launch of two N-series light passenger EV models
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Upward revision of the forecast for FY2025
Summary
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| Strengthening Honda's business foundation through the reassessment of the powertrain portfolio (Source: 2025 Honda Business Briefing (May 20, 2025)). |
In May 2025, Honda Motor Co., Ltd. (Honda) presented its "2025 Business Briefing," outlining Honda's future management strategy, which focuses on businesses related to electrified vehicles. In the previous year, Honda had set a target of 30% EV/BEV (battery electric vehicle) sales ratio and 2 million EV production units by FY2030 with the introduction of the Honda 0 (Honda Zero) Series EV, scheduled to be launched globally from 2026. However, in light of changes in environmental regulations and the prospect that the expansion of the electrified vehicle (xEV) market will slow down, Honda reassessed its current strategy and will shift to strengthening HEV (hybrid electric vehicle) lineup. Based on the HEV platform "Next Generation e:HEV," Honda has set a target of selling 2.2 million HEVs by 2030. Honda aims to reduce the cost of the next-generation hybrid system by over 50% compared to the 2018 model and over 30% compared to the 2023 model. Regarding next-generation autonomous driving technology, Honda will work with the Chinese autonomous driving technology provider Momenta Global Limited (Momenta) to incorporate the technology in all new models to be launched in China in the future.
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