Honda Motor Company, the inventor of VTEC petrol engine technology, has committed to 100% overall unit sales globally for battery-Electric Vehicles (EVs) and Fuel Cell Electric Vehicles (FCVs) by 2040.
Honda President Toshihiro Mibe, who took over in April, made the announcement at his inaugural press conference on Friday, unveiling the future direction of the world’s largest manufacturer of engines, with a diverse array of automotive, motorcycle, marine, aviation and power equipment products.
To achieve its carbon-free goal on a ‘tank-to-wheel’ basis, ‘Honda will strive to increase the ratio of battery-Electric Vehicles (EVs) and Fuel Cell Electric Vehicles (FCVs). Accordingly, the overall unit sales in all major markets for combined electrification will reach 40% by 2030, to 80% by 2035, and then to 100% globally by 2040.’
The Japanese automaker has set the same EV/FCV unit sales ratio target of 40% by 2030, 80% by 2035 and 100% by 2040 for North America and China, respectively.
Honda will invest close to $48 billion (approximately 5trillion yen) in R&D over the next six years, regardless of sales numbers, in an attempt to catch up in the EV space and meet other targets set by the automaker. To remain competitive in the EV space, Honda is conducting independent research on all-solid-state batteries as the next-generation batteries that will deliver higher capacity at a lower cost. ‘We will undertake the verification of production technology using a demonstration line, starting this fiscal year,’ Mibe said. Honda will now begin accelerating this research to make all-solid-state batteries available for its new models due for launch post 2025.
Honda will leverage its alliance with General Motors (GM) in North America, where joint development of two large-sized EV models for the Honda and Acura brands is underway using GM’s Ultium batteries. A 2024 model year launch is planned, and post 2025, Honda will also debut new EV models in North America based on a completely new EV platform called e:Architecture.
In China, a production version of Honda’s SUV e:prototype is planned to go on sale in April-May 2022. In addition to the new SUV, Honda will introduce another nine EV models by 2027 and strengthen its collaboration with Fujian province-based Contemporary Amperex Technology (CATL) to supply batteries.
In its home market, Japan, Honda aims to electrify 100% of its automobile unit sales (including hybrid-electric vehicles) by 2030. The goals for EV/FCV unit sales are 20% by 2030, 80% by 2035 and 100% by 2040. Honda will launch its first EV K-car segment in 2024 and will also introduce an electric self-driving vehicle, ‘Cruise Origin’, being developed jointly with GM and self-driving car service Cruise. Development testing in Japan starts this year, and a market launch is planned post 2025.