Honda Motor Co. will launch 30 electric vehicle models by 2030 with a production volume of more than 2 million vehicles per year, the company announced during a live briefing on Monday evening.
The Japanese automaker said it will spend $40 billion (5 trillion yen) on electrification over the next ten years, which includes building its own electrification architecture and exploring new opportunities growth in space exploration, eVTOL, avatar 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) per year in startups that could help the automaker. automobile to develop its activities and to move from the sale of products. alone in offering combined solutions, according to Honda CEO Toshihiro Mibe, who noted that the company will also actively pursue cross-industry collaboration and alliances.
Last month, Honda tapped Sony to jointly manufacture and sell electric vehicles.
Honda will rely on external financing methods as needed, Kohei Takeuchi, Honda’s senior vice president, said during the briefing. Last month, Honda announced that it would issue USD-denominated green bonds for a total of $2.75 billion, which will be allocated to the development and production of zero-emission vehicles. In June 2021, Honda announced that it would phase out gas-powered cars completely by 2040.
Honda covered a lot of ground on Monday, including battery development plans, bringing its mini EV to market and more, so let’s break down the automaker’s new electrification strategy.
Introduction of crazy and cheap Honda electric vehicles
Honda plans to introduce an incredibly inexpensive mini-EV model for commercial use in the $8,000 (1 million yen) price range in Japan by 2024. After that, Honda will start rolling out mini-EVs and SUVs for personal use, the company mentioned. Honda is offering the car first for commercial use because Japan lacks the charging infrastructure to deploy a large-scale electric vehicle rollout, Mibe said.
By the same year in North America, Honda also plans to introduce two mid- to large-size electric vehicle models – a Honda Prologue SUV and an Acura SUV – which are currently under development with General Motors at price points. competitive with ICE vehicles. .
Just last week, Honda announces partnership with GM co-develop electric vehicles by 2027 in North America using GM’s Ultium platform which will cost around $30,000.
The automaker also announced that it would build a dedicated production line for electric vehicles in North America.
Additionally, Mibe doubled Honda’s previous commitment to launch 10 new EV models in China as part of its e:N series by 2027, with two models going on sale this year. Honda plans to build a dedicated electric vehicle factory in Guagzhou and Wuhan to support production in one of its most important markets.
Honda is also pursuing the launch of two electric sports models, a specialty and a flagship model, by the middle of the decade, according to Takeuchi, but it is unclear whether these cars would be as affordable as others from Honda. hope to launch soon.
Honda e: Architecture
While Honda will build on its partnership with GM to use the Ultium architecture and EV platform, the automaker fully intends to build its own architecture by bolstering its software capabilities. The Honda e:Architecture, which the company plans to introduce in 2026, will be an EV platform that includes both a hardware and software layer and is cloud-connected.
Like many other automakers, Honda sees the potential for the software-defined vehicle to help generate recurring revenue through third-party apps. That’s why it builds an application layer on top of the vehicle’s operating system, which can be continuously updated over the air, according to Mibe.
Potential battery joint venture
Honda said it was exploring the possibility of creating a North American joint venture for battery production outside of its partnership with GM, but Mibe did not give names. The automaker’s goal is to ensure a stable supply of liquid lithium-ion batteries in the region, as well as in China and Japan, its two other main markets. To support this, Honda aims to strengthen its existing collaboration with CATL in China and source batteries for its mini-EVs from Envision AESC in Japan.
To accelerate its independent solid-state battery R&D, Honda is investing about $343 million (43 billion yen) in building a demonstration line. Honda hopes to start production in the spring of 2024 and adopt its next-generation batteries in models that will be introduced after 2025.
Continue to consolidate business and reduce costs
Honda is on track to meet its goal of reducing global auto production by 10%, compared to the cost recorded in 2018, Mibe said. Despite issues such as the pandemic and the shortage of semiconductors, the company says it has been able to tighten its business structure and hopes to achieve a sales return of more than 7%.