Honda Recalibrates EV Strategy Amid Sluggish U.S. Sales

Honda announced a shift in its electrification strategy as the Japanese automaker faces sluggish electric vehicle sales in the United States. The company is scaling back its previous investment target to 7 trillion Yen (USD 48 billion) from 10 trillion Yen, while maintaining a long-term commitment to electrification.

Chief Executive Toshihiro Mibe stressed that although the timeline has shifted, the fundamental direction towards electrification remains unchanged. Instead, Honda plans to focus more aggressively on hybrid models, with adaptations to its Ohio plant to support both EV and hybrid production.

Amid an uncertain business environment, including changing environmental regulations, Honda is also leveraging digital technology to enhance safety features. Negotiations with Nissan and Mitsubishi are ongoing, despite earlier talks of a merger falling through. The company continues to face external challenges such as tariffs and decreasing sales in China.

(With inputs from agencies.)