Initially, Honda’s intention was to build only fully electrically powered cars. Still, the company has backed down somewhat after announcing that it would ban the internal combustion engine a year ago this month. Japan’s third-largest car manufacturer announced on Tuesday that it would invest 5 trillion yen (about 38 billion euros) in the development of electric transport over the next ten years. CEO Toshihiro Mibe said in a statement that the goal is still to make Honda cars completely emission-free by 2050, but “not just by replacing engines with batteries.” Honda believes it can achieve that goal with hybrid vehicles that run on both fossil fuels and electricity.
With this, Mibe seems to be aiming for a future in which fossil fuels have not yet completely disappeared from the scene. The Honda CEO is not alone. Previously, competitors BMW and Toyota made the same move; the carmakers hinted at banning the combustion engine altogether, but announced in their strategy updates to focus on hybrid engines because they foresee a shortage of charging stations.
Focus on China and the US
Honda wants to use more than half of its research budget to increase the range of electrically powered cars. Honda now only has one all-electric model, putting it well behind international competition in terms of production. CEO Mibe wants to catch up by betting on the American and Chinese markets. Through a collaboration with the American General Motors, Honda wants to bring a medium to large model in the US in two years’ time. In China, where the demand for electric cars is growing strongly, Honda wants to make ten new models available by 2027. By 2030, Honda aims to produce two million electric cars annually (by 2020, Honda produced a total of 4.4 million vehicles).
In Japan, where the vast majority of cars already have a hybrid combustion engine, electric delivery vans will be introduced first. The idea is that companies are more likely to adopt electric transport, because the Japanese government provides substantial subsidies.
Still, it cannot be said that Honda shows no ambition. In April last year, Honda was the first Japanese car maker to announce its intention to switch completely to electric driving. A year earlier, Honda withdrew as an engine supplier to the prestigious Formula 1 due to climate considerations – Max Verstappen therefore had to look for a new engine builder.
A version of this article also appeared in NRC in the morning of April 13, 2022
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