Honda is shifting their gears towards carbon neutrality and zero accidents by 2050. As the demand for EVs have waned down, they are now pulling back on targets and investments while setting their sights on HEVs instead as an area of focus.
Previously, Honda said they want 30% of their total sales to be EVs by 2030. They are now positioning their HEVs front and center with next-generation models to be introduced by 2027 onwards. They are forecasting a total sales number of 3.6 million units by then, with HEVs comprising 2.2 million units or 61%.
In line with this shift, Honda is eyeing to improve their e:HEV hybrid system that’s currently in the CR-V, HR-V, and Civic here in the Philippines. They plan on combining it with a next-generation platform that has further weight reduction and improved driving stability, while also creating a new All-Wheel Drive vehicle with “highly precise and responsive motor control.” They are aiming to enhance the fuel economy of the next-generation e:HEV models by 10% and upgrade its driving experience to one that only Honda is known for. 
Honda is also aiming to have co-creation manufacturing with its suppliers in order to bring the cost of e:HEV models down for more competitive models globally. They are looking into making key components like batteries and motors in order to push the cost down, which can then be passed on to consumers. This will reduce the cost of next-generation HEV systems by 30%-50%.
A large-sized HEV model is also on the table as an offering to the North American market which is one of the main markets of Honda. Along with this, they’re aiming to launch 13 next-generation HEV models globally starting in 2027 over a four-year span in order to capture the growing demand for hybrid models worldwide.
Honda is also in the works to unveil their “original” next-generation Advanced Driver Assist System that will make its debut in models for North America and Japan around 2027. By adopting this new technology not just in EVs but HEVs as well, they’re expecting this will give them an advantage in the market and will help achieve their goal of providing “joy of mobility” to customers worldwide.
The retro H logo that was previously unveiled and planned to be used for EVs will now be also used for future HEVs starting with the next generation models unveiled in 2027.
They plan on improving their current ADAS or Honda Sensing technology by making it usable on normal roads as well. Currently, most of their technology like Lane Recognition Systems and Cruise Control can only be used on the highway. The next generation of their ADAS is aimed to include Autonomous Parking Assist and more steering operations as well.
There is no word regarding the renewed targets for EV adoption. Honda also reduced its investment towards electrification, from 10 trillion yen to 7 trillion yen as they have changed their decision on certain EV production plans. Despite this, Honda claims they still believe that EVs are the optimal solution to achieve carbon neutrality and will still do initiatives for their future EV shift. Their Honda 0 Series which is a range of EVs will continue the debut of its first-generation models next year.
Finally, Honda is taking the lessons of the past couple of months to their planning. They said they are working on pursuing a resilient supply chain strategy “that is not easily swayed by fluctuations in demand, such as shifts between EVs and HEVs, or unforeseeable factors such as changes in government policies in different countries.” They’re not acknowledging anything but some of their projects, like the EV-related factory supposed to be in Canada are suddenly stopped, rumored to be because of the tariffs the US has been hell bent on imposing since Trump took office again.
A flexible production system is going to be established that is capable of optimizing production according to demand and sales strategies. This will include a mixed-model production line that will work on both EVs and HEVs. They will also strengthen their supply chain across different markets in order to meet customer needs closer.
