Honda Japan to Invest 87 Trillion Won in Electric Vehicles and Software by 2030

Latecomer Honda Begins Pursuit of Tesla in China and the US

Japanese automaker Honda will invest 10 trillion yen (approximately 87 trillion won) in electric vehicles and software by 2030.

According to the Nihon Keizai Shimbun (Nikkei) and Kyodo News on the 16th, Honda President Toshihiro Mibe announced the investment plan for electric vehicles and software at a briefing held in Tokyo that day.

This amount is double the scale Honda had previously planned to invest in these fields. Specifically, 6 trillion yen (approximately 52.2 trillion won) will be allocated to vehicle manufacturing, including the establishment of next-generation factories, and 2 trillion yen (approximately 17.4 trillion won) each will be invested in electric vehicle batteries and software development.

Mibe Toshihiro Honda, CEO, announced the new electric vehicle 'Space-Hub' at CES 2024, the world's largest consumer electronics and IT exhibition, held at the Las Vegas Convention Center in the United States on January 9 (local time). [Image source=Yonhap News]

Honda plans to reduce battery costs procured in North America by more than 20% compared to now by 2030, and lower production costs by 35%. Earlier, Honda announced plans to produce only electric vehicles and fuel cell vehicles starting in 2040. In this regard, last month, it announced an investment of 15 billion Canadian dollars (approximately 15 trillion won) in Canada to build a new electric vehicle factory and a battery factory for electric vehicles.

Nikkei analyzed Honda’s electric vehicle and software investment plan by stating, "Although Honda was late in developing electric vehicles, it aims to counterattack with massive investments to compete against China and Tesla in the United States."

This content was produced with the assistance of AI translation services.