New Delhi: Honda appears to be taking a slower and more flexible road to electrification after a tough run in the EV business. According to an NHK report translated from Japanese, the company has decided to withdraw its earlier goal of making all new global car sales electric vehicles or fuel cell vehicles by 2040.
This is a major shift from Honda’s 2021 plan, when the Japanese automaker said EVs and fuel cell vehicles would make up 40 per cent of sales by 2030, 80 per cent by 2035, and 100 per cent by 2040. For car buyers and enthusiasts, this means Honda may not go EV-only as quickly as expected. The petrol, hybrid and cleaner fuel story may still have more chapters left.
Honda changes its EV-only road map
The reported rethink comes after Honda last month estimated that its slow EV business in North America could lead to losses of up to 2.5 trillion yen, roughly ₹1.32 lakh crore. That is not loose change, even for a global carmaker.
Honda is still expected to keep its 2050 carbon neutrality goal across products and business operations. The change is in the route. The company’s new strategy will reportedly avoid naming a fixed EV sales percentage.
Why this matters for car buyers
Honda’s earlier wanted EVs and fuel cell vehicles to take over all new car sales by 2040. Now, the company may use more options to cut emissions. The road to this goal can now include: Hybrid cars for markets where charging is still limited, Fuel cell vehicles for specific use cases, Biofuels and cleaner fuels, and Carbon capture technologies.
For Indian enthusiasts, this is interesting. Honda has a strong image around reliable petrol engines, smooth hybrids and city-friendly cars. A slower EV-only shift could mean hybrids remain relevant for longer, especially in markets where charging networks are still growing. Honda’s lack of focus on India market is a different story altogether, the Honda Elevate could have done wonders with the City’s Hybrid powertrain, but alas!
EV demand slowdown changes the mood
The NHK report points to weaker EV demand and policy changes in the United States under the Trump administration as factors creating uncertainty. The global EV rush is not moving at one speed anymore.