Honda just made a shocking move. It’s slashing its electric vehicle investment by over $21 billion. The reason? Slow sales of its electric cars. But here’s the thing: global electric vehicle sales are actually booming. This decision has people questioning whether Honda is falling behind in the rapidly changing car market.
The global competition is heating up, with other manufacturers going all-in on electric vehicles. Meanwhile, Honda is shifting its focus back to hybrid cars, which still rely on gasoline and harm the environment. This move seems counterintuitive, especially since Honda has pledged to achieve carbon neutrality by 2050.
In May 2025, Honda announced it was abandoning its goal of having electric vehicles make up 30% of its global sales by 2030. The company cited changing environmental regulations and slashed its initial investment plan from $69 billion to $48 billion. Instead, Honda will focus on launching new hybrid models starting in 2027. These cars will still burn gasoline, emitting greenhouse gases and pollutants, which contradicts Honda’s carbon neutrality goal.
However, analysts at Electrek point out that global electric vehicle sales are growing steadily, with no signs of slowing down. In fact, they predict that by the end of this year, over a quarter of all cars sold will be electric. This raises questions about Honda’s decision to scale back its electric vehicle ambitions.
Major markets like the US and Europe are not loosening their environmental regulations. The US aims to have 50% of its car sales be electric by 2030, while California is targeting 68%. Europe is also maintaining its strict emissions standards. So, what does the future hold for Honda? Will its decision to go against the global trend pay off, or is the company taking a step backward?
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