Honda cuts investment in electric vehicles and will focus on hybrids

Honda Motor Company announced that it is reducing investment in electric vehicles due to declining demand and will focus on hybrids, releasing new models, Reuters writes.

CEO Toshihiro Mibe said at a press conference that the automaker has reduced planned investments in electrification and software through fiscal year 2030 from 10 trillion yen to 7 trillion yen ($48.4 billion).

Honda plans to launch 13 next-generation hybrid models worldwide over four years, starting in 2027. The decision marks a strategic review of the company's electric vehicle direction amid changing market conditions.

It is worth noting that Honda recently considered a merger with Nissan, one of Japan's largest automakers. However, an agreement was never reached. According to the WSJ, the main reason for the collapse of the negotiations was Honda's desire to make Nissan a subsidiary, which caused dissatisfaction with Nissan management.