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Honda to invest $40b in EV tech over next decade
Firm to launch 30 models by 2030 with over 2 million units in annual production volume.
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J
apanese automaker Honda said Tuesday it would invest nearly US$40 billion into electric vehicle technology over the next decade as it works towards switching all sales away from traditional fuel cars.
Global auto giants are increasingly prioritizing electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.
Honda said in a statement that it planned to launch 30 EV models by 2030, with an annual production volume of more than 2 million units.
The company said it would allocate around 5 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.
Major global carmakers are increasingly prioritizing electric and hybrid vehicles as concern about climate change grows.
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.
The announcement comes on the heels of Sony's January unveiling of a new prototype, its Vision-S electric vehicle, and the announcement of a new subsidiary Sony Mobility to explore entering the EV market.
"Although Sony and Honda are companies that share many historical and cultural similarities, our areas of technological expertize are very different," Sony Group president Kenichiro Yoshida said in a statement.
"I believe this alliance, which brings together the strengths of our two companies, offers great possibilities for the future of mobility."
At a joint press conference, Honda CEO Toshihiro Mibe said discussions on the collaboration had picked up speed when Honda and Sony staff "felt big possibilities, like a chemical reaction" at a joint mobility workshop held last year.
Honda will be responsible for manufacturing the pair's first vehicle, but both companies will work together on design, tech and sales.
At present, around 10 percent of European car sales are EVs, and the United States figure is just 2 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.
