Honda's EV Ambitions Wane, Focus Shifts to Hybrid Cars

KatadataOTO – Japanese automotive manufacturer, Honda has revealed a decline in interest and sales of electric cars. This has triggered the H-badged manufacturer to back down from its electrification ambitions.

Previously, Honda targeted Electric Vehicles (EVs) to contribute at least 30 percent of their total sales by 2030.

However, this plan has been adjusted. Although not stated significantly, the decision indicates that their target proportion of electric car sales will be lower.

“It is very difficult to read the market, but we see electric cars contributing one-fifth (of sales) by 2030,” said Toshihiro Mibe, CEO of Honda, at a recent press conference.

Photo : Honda

Following this statement, Honda confirmed a change in their electrification plans.

“Honda is re-analyzing its EV strategy and roadmap, including the EV product lineup and investment timing, as well as the construction of a comprehensive electric car value chain in Canada,” Honda wrote in a statement, quoted by Autoweek some time ago.

Therefore, investment related to electric cars will be reduced from 69 million USD (Rp 1.1 trillion) to 48 million USD or around Rp 776.9 billion when converted to the rupiah exchange rate.

Honda emphasized that the focus will be shifted more towards hybrid cars, especially in the United States market.

“The uncertainty of the business situation is increasing due to the slowing expansion of EVs, caused by various factors, including changes in environmental regulations which are a pillar of electric car adoption,” the statement continued.

On the other hand, Honda highlighted changes in trade policies in several countries.

However, the launch of Honda's 0 series electric cars is said to be proceeding according to the initial plan, starting with a launch in 2026.

In Indonesia, PT Honda Prospect Motor (HPM) currently only offers one electric car, the e:N1, through a rental scheme.

Photo : HPM

Their electrification lineup is dominated by hybrid cars. The latest at GIIAS 2025 is the Multi-Purpose Vehicle (MPV) Step Wgn e:HEV.

However, in 2026, PT HPM intends to launch a new electric car to support the government's commitment.

However, the model is not yet clear, nor is it known whether it will still use a rental scheme like the one currently used for the Honda e:N1 electric car.