TOKYO, Japan, May 16, 2024 — Honda Motor Co., Ltd. Director, President and Representative Executive Officer (Global CEO) Toshihiro Mibe today held a press briefing on Honda initiatives centering on automobile electrification.

Approach to electrification targets:
Honda has not changed its belief that EVs are the most effective solution in the area of small mobility products such as motorcycles and automobiles, and Honda’s electrification target to make EVs and FCEVs represent 100% of its global vehicle sales by 2040 remains unchanged. Honda must look ahead to the period of EV popularization and build a strong EV brand and a strong EV business foundation from a medium- to long-term perspective.

2024 Honda Business Briefing on electrification initiatives and investment strategy summary

Structural reform of procurement and production operations:
Through the establishment of a vertically-integrated EV value chain with a central focus on batteries, as of 2030, Honda will reduce the cost of the battery to be procured in North America by more than 20% compared to the cost of current batteries.

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

EV lineup strategy:
For the Honda 0 Series, a global EV series which will be the flagship series of Honda EVs, a total of seven models will be launched globally by 2030 including various models ranging from small to large size. As a part of electrification with the use of Honda Mobile Power Pack e: (MPP), Honda will introduce a micro-mobility product which will be equipped with 4 MPPs in Japan before the end of FY2026, enhancing the applications of MPPs.

Financial strategy:
Honda is planning to invest approximately 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.

The environment surrounding automobile electrification is undergoing dramatic changes, and in some regions, the sense of a slowdown in EV market growth is gaining attention. There are various approaches toward Honda’s 2050 goal of carbon neutrality. For example, to achieve “zero environmental impact” in powering large mobility products such as aircraft and large watercraft, the use of SAF^*1  and e-fuel is being viewed as a high potential solution, from the perspective of range.

^{*1 SAF: sustainable aviation fuels}