Honda Motor Maintains Electrification Target; To Invest Around 10 Tln Yen In Resources Through FY31

(RTTNews) - Japanese auto major Honda Motor Co., Ltd. (HMC) on Thursday issued a business briefing on direction of electrification initiatives and its investment strategy.

At a press briefing, Honda Director, President and Global CEO Toshihiro Mibe said the company maintains that EVs are the most effective solution in the area of small mobility products such as motorcycles and automobiles. The company's electrification target to make EVs and FCEVs represent 100 percent of its global vehicle sales by 2040 remains unchanged.

Further, Honda said that as of 2030, it will reduce the cost of the battery to be procured in North America by more than 20 percent compared to the cost of current batteries. This will be done through the establishment of a vertically-integrated EV value chain with a central focus on batteries.

Honda plans to establish a competitive business structure with an aim to reduce overall production cost by approximately 35 percent. The company already has a positive outlook to secure enough batteries for the planned production of approximately 2 million EVs per year.

For the Honda 0 Series, a global EV series which will be the flagship series of Honda EVs, the company plans to launch a total of seven models globally by 2030 including various models ranging from small to large size.

Honda further said it is planning to invest around 10 trillion yen in resources over the 10- year period through FY2031, when the period of full-fledged popularization of EVs is expected to start.

Honda will pursue both bold investments for future growth and shareholder returns.

In Tokyo, Honda Motor shares closed Thursday's trading at 1,708.50 yen, down 2.40 percent.