TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Honda to invest $40 billion in EV tech over next decade

The Japanese automaker plans to launch 30 EV models by 2030, with an annual production volume of more than two million units.

AFP
Tokyo, Japan
Tue, April 12, 2022

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Honda to invest $40 billion in EV tech over next decade This photo taken on March 23, 2020, shows employees wearing face masks working on an assembly line at an auto plant of Dongfeng Honda in Wuhan in China's central Hubei province. (Agence France Presse/STR)

J

apanese automaker Honda said Tuesday it will invest nearly US$40 billion into electric vehicle (EV) technology over the next decade as it works towards switching all sales away from traditional fuel cars.

Global auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.

Honda said in a statement that it plans to launch 30 EV models by 2030, with an annual production volume of more than two million units.

The company said it would allocate around five trillion yen ($39.9 billion) over the next 10 years "in the area of electrification and software technologies to further accelerate its electrification".

The investment is the latest step in its push to have electric and fuel cell vehicles account for 100 percent of all sales by 2040, a target announced a year ago.

Honda and Japanese tech conglomerate Sony announced last month they would start a new company to develop and sell electric vehicles, with sales of their first electric model expected to begin in 2025.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

By registering, you agree with The Jakarta Post's

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

At present, around 10 percent of European car sales are EVs, and the US figure is just two percent.

But demand is growing, and other major automakers including Honda's Japanese rivals are investing money and resources into electric vehicles.

Earlier this year, the auto alliance grouping Nissan, Renault, and Mitsubishi Motors promised to offer 35 new electric models by 2030 as it announced a total investment of $25 billion in the sector.

Toyota, the world's top-selling carmaker, has also recently hiked its 2030 electric vehicle sales goal by 75 percent, aiming to sell 3.5 million EVs a year from then.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Generating Questionnaires

Thank You

Thank you for sharing your thoughts.
We appreciate your feedback.