Electric car market demand has slowed down, Honda will reduce investment in electrification and adjust sales targets.

Honda announced on May 20 that considering the recent slowdown in the electric vehicle market, they are adjusting their product deployment plan. It is expected that by 2030, the proportion of electric vehicle sales will be lower than the previously announced target of 30%. On the other hand, there is high demand in the market for hybrid vehicles. Therefore, Honda will further strengthen its hybrid vehicle product line. Honda announced last year that they will invest 10 trillion yen to promote their electrification strategy, but due to delays in establishing a comprehensive electric vehicle value chain project in Canada and adjusting the construction time of a dedicated electric vehicle factory, Honda has decided to reduce the planned investment amount to 7 trillion yen by the fiscal year 2031.