In its business briefing today, Honda Motor Co. announced that it is recalibrating its electrification strategy amid evolving market dynamics and geopolitical uncertainties. While reaffirming its long-term commitment to carbon neutrality by 2050, the company is adjusting its short-term plans in response to shifting consumer demand and economic pressures.
The business briefing was led by Toshihiro Mibe, the company’s president and CEO, who is very familiar with their new energy programs since he served leadership positions in Honda R&D Co., Ltd., where he led various initiatives in powertrain and drivetrain technologies.
Under his leadership, Honda has embarked on an ambitious transformation toward electrification and sustainability. In line with this vision, Honda announced a ¥10 trillion (approx. $65 billion) investment through fiscal 2031 to enhance its EV lineup, focusing on key markets like the U.S. and China. However, Honda decided to reduce the investment amount by ¥3 trillion, to a total of ¥7 trillion, over the period through the FY2031 (fiscal year ending March 31, 2031), based on its decision to postpone the project to establish a comprehensive EV value chain in Canada and change the timing to construct dedicated EV production plants.
The company also plans to introduce its new “0 Series” EV models in North America by 2026, with seven models by 2030, and aims for 100 percent EV sales in China by 2035. It also announced recently that it will co-develop new ADAS (advanced driver assistance systems) under real world conditions in China.
But according to Honda, due to the revision of the product launch plan considering the recent market slowdown, the Honda global EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 percent. On the other hand, current market demand for HEV models is high. Therefore, Honda will position its HEVs, mostly next-generation HEV models to be introduced to market in 2027 onward, as the powertrain that will play a key role during the transition period toward the popularization of EVs and further enhance its HEV lineup.
In its 2025 business briefing, Honda reiterated its goal for electric and fuel cell vehicles to achieve 100 percent of global auto sales by 2040. To achieve this, Honda plans to produce over two million EVs annually by 2030. The company is introducing the Honda 0 Series, a new line of EVs set to debut in North America in 2026, with seven models expected globally by 2030.
However, Honda is also scaling back certain initiatives. The company has postponed its plan to build an EV supply chain in Ontario, Canada, by two years due to slowing EV demand and economic uncertainty. Additionally, Honda is doubling down on hybrid vehicles, aiming to double global hybrid sales to 1.3 million units annually by 2030 as a transitional strategy.
In the motorcycle segment, Honda is accelerating electrification efforts. The company aims to introduce 30 electric motorcycle models globally by 2030, targeting annual sales of four million units. To support this, Honda plans to invest approximately 500 billion yen over the next decade to enhance production capabilities and develop new technologies.
Despite these adjustments, Honda remains focused on its long-term electrification goals, adapting its strategies to navigate current challenges while laying the groundwork for a sustainable future.
Honda’s refreshed electrification roadmap—anchored by massive investments in high‐power electric motors, next‐generation battery systems, and dedicated EV platforms—aligns closely with the new 2026 Formula 1 power-unit regulations, offering several key advantages for its F1 campaign from 2026 onward.
These R&D programs accelerate innovation in high-density power electronics, thermal management, and motor efficiency—all directly transferable to the F1 MGU-K and MGU-H components required by the 2026 regulations. The FIA’s 2026 power-unit rules triple the available electrical power delivered by the MGU-K—up from roughly 120 kW today to nearly 350 kW—while mandating a 50:50 split between internal-combustion and electric power and 100-percent sustainable fuels. The learnings from its consumer EV program—where rapid software updates and new e-motor iterations are routine—can be mirrored in F1’s development push, helping Honda refine its hybrid boost strategies and ensure reliability under race conditions.
Racing success with cutting-edge hybrid systems under extreme stresses reinforces Honda’s consumer branding around electrification and sustainability. Demonstrating that its road-car e-motors and batteries can be scaled up to F1 performance levels showcases technical credibility, bolstering sales of its “0 Series” models and hybrid lineup.
Honda’s widescale electrification investments not only serve its consumer business but also provide a deep well of technology—high-power electric machines, battery management know-how, and rapid iteration processes—that map directly onto Formula 1’s new hybrid era, positioning Honda to hit the ground running in 2026 and beyond.
