Honda Walks Back EV Strategy, Promises More Hybrids Instead

Honda said it is abandoning its goal to have 30 percent of its sales come from electric vehicles by 2030. However, the company still plans to try and phase out combustion engines entirely by 2040.

"Based on the current market slowdown, we expect EV sales in 2030 to fall below the 30% that we previously targeted," said Honda CEO Toshihiro Mibe during Honda's 2025 Business Briefing in Tokyo.

Remember that $69 billion investment Honda initially committed to by 2030 for EVs and software? That number's now been adjusted down to $48.4 billion to reflect the automaker's new forecast on how many EVs they'll actually be selling. Mibe now figures electric cars will optimistically make up closer to 20 percent of Honda's sales by the close of the decade.

To fill in the gaps, a range of new hybrid models is in development. Between 2027 and the end of 2030, Honda plans to introduce at least 13 models globally equipped with its next-generation hybrid technology.

Honda says North America is a primary market for hybrids, and the automaker intends to address the unique regional demand by developing a new hybrid system for larger vehicles. This new hardware is projected for release later this decade, designed to meet the existing demand for spacious, high-capacity, large vehicles.

The automaker was light on details about the large vehicle hybrid system, but did promise "powerful driving performance and high towing capability."

These new hybrid models will feature a revised, flatter Honda logo design, similar to those seen on the 0 Series Saloon and SUV, which debuted at CES earlier this year.

The specific U.S.-bound model that will debut the new hybrid system has not been confirmed, but it's pretty easy to assume the Honda Pilot is a likely candidate. The large vehicle hybrid system will likely find its way into almost every vehicle currently using the company's 3.5L DOHC J35Y8 V6 engine—this includes the Pilot, Passport, Ridgeline, and Odyssey.

Honda is projecting hybrid sales to hit 2.2 million units annually by the end of the decade. The automaker believes this tweak to its electrification strategy will boost total sales beyond the current 3.6 million vehicles per year. On top of that, Honda projects it can cut the cost of its next-gen hybrid system in half compared to 2018 figures.

On the EV front, Honda still plans to release the 0 Saloon and 0 SUV, which will be built on a fresh, centralized electrical/electronic architecture designed for Level 3 autonomous driving. Both are scheduled to roll off the assembly line at Honda's EV hub in Ohio starting next year—a departure from Honda's current arrangement for the Prologue and Acura ZDX, which were developed in collaboration with General Motors.

Honda hasn't specified exactly how this adjustment will impact its plans in the United States, but the automaker is icing a $10.7 billion plan to convert its factory in Alliston, Ontario, into an EV manufacturing facility. That plant was meant to support the Ohio EV hub, complete with battery and cell production.

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