Honda pivots to hybrids, scrapping EV sales targets after $15.7 billion writedown
The new Accord and Acura RDX prototypes mark the start of fifteen planned hybrid launches by 2030, following a significant retreat from previous electric vehicle ambitions.
Honda has revealed prototypes of a new hybrid Accord sedan and a hybrid Acura RDX SUV during its annual business briefing, signalling a strategic pivot away from its previous electric vehicle (EV) ambitions. The two models, built on a new platform scheduled to launch next year, are the first of fifteen new hybrid vehicles the company plans to introduce by 2030.
The announcement underscores a broader reallocation of development and production resources towards hybrid technology. Honda confirmed it is dropping its previous target of having electric vehicles account for 20 per cent of its sales by 2030. The automaker also revised its long-term goal, abandoning the aim for 100 per cent of sales to come from EVs and fuel cell vehicles by 2040.
This shift follows a substantial financial correction earlier in the year. In March, Honda announced a writedown of up to 2.5 trillion yen ($15.7 billion) on its EV investments. The company stated that it expects EV-related losses to be resolved by 2029, with plans to reevaluate its EV strategies in 2030.
The hybrid Acura RDX was previously announced earlier this year as the first SUV to feature Honda’s next-generation two-motor hybrid system. The new Accord prototype joins the lineup as the company seeks to capitalise on the growing market demand for hybrid powertrains while managing the financial pressures associated with full electrification.
While the prototypes highlight Honda’s immediate focus on hybrids, the company maintains that it will continue to monitor the EV landscape. The specific technical details of the new platform and the exact timeline for the full rollout of the fifteen planned hybrids remain to be seen, as does the precise nature of the planned 2030 reevaluation.
