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Honda doubles electric vehicle investment to nearly $60 million
Japanese automaker Honda announced today that it will double its investment in electric vehicles to 10 trillion yen (about 59.46 billion euros) by 2030.
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Auto Honda
The decision was announced by the automaker’s chief executive, Toshihiro Mibe, during a presentation of the company’s electrification plans, as Honda looks to expand its electric and fuel-cell models to 100% of sales by 2040, in a bid to compete with rivals such as Tesla and BYD.
Speaking during the presentation, Mibe said that the electric vehicle industry is still in its early stages, but that in the long term “the shift to EVs will continue steadily,” according to a statement released by the carmaker.
Of the ¥10 trillion, double the amount that Honda had previously planned in its earlier strategy, around ¥6 trillion ($35.67 billion) will be used to build a new state-of-the-art factory and produce new EV models, with another ¥2 trillion ($11.89 billion) earmarked for software research and development and the remaining ¥2 trillion going toward battery production.
The Japanese carmaker is aiming to cut the cost of procuring batteries by 20% by 2030 in the U.S., as well as reducing EV production costs by 35%.
Honda also announced that it plans to launch seven new Honda e:N series electric models globally, ranging from small vehicles to sporty models.
Honda itself announced in March that it was in talks with rival Nissan over an alliance on electric vehicles and the software that powers them.
Nissan has also said it plans to invest ¥2 trillion ($11.89 billion) in electrification and related technologies through 2026, while Toyota a year ago announced a ¥5 trillion ($29.73 billion) investment in EVs and batteries through 2030.
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