FX.co ★ Honda Motor Maintains Electrification Target; To Invest Around 10 Tln Yen In Resources Through FY31

On Thursday, Honda Motor Co., Ltd. (HMC), a leading Japanese automotive manufacturer, provided an update on its electrification efforts and investment strategies.

During a press briefing, Toshihiro Mibe, Honda's Director, President, and Global CEO, emphasized that electric vehicles (EVs) remain the most efficient solution for small mobility products, such as motorcycles and automobiles. The company reiterated its commitment to achieving its electrification goal, whereby EVs and fuel cell electric vehicles (FCEVs) will constitute 100 percent of its global vehicle sales by 2040.

Honda also announced plans to significantly reduce battery costs in North America by over 20 percent by 2030, compared to current levels. This cost reduction will be achieved through the creation of a vertically-integrated EV value chain, with an emphasis on battery development and production.

The company aims to establish a competitive business structure designed to lower overall production costs by approximately 35 percent. Honda remains optimistic about securing a sufficient battery supply to support the planned annual production of around 2 million EVs.

For its global EV series, known as the Honda 0 Series, the company intends to introduce a total of seven models by 2030, encompassing a range of sizes from small to large.

Honda has outlined plans to invest approximately 10 trillion yen in resources over a ten-year period through fiscal year 2031, which aligns with the anticipated widespread adoption of EVs. The company is committed to balancing investments for future growth with shareholder returns.

In Tokyo, Honda Motor's shares closed Thursday's trading session at 1,708.50 yen, reflecting a decline of 2.40 percent.