Honda to Develop 30 Electric Vehicle Models by 2030, Investing 79 Trillion Won Over 10 Years

Toshihiro Mibe, CEO of Honda, is answering reporters' questions on the 12th.
[Image source=AP Yonhap News]

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[Asia Economy Reporter Jeong Hyunjin] Honda, Japan's second-largest automobile manufacturer, has set a goal to invest 8 trillion yen (approximately 79 trillion KRW) over the next 10 years to develop 30 electric vehicle (EV) models by 2030.

According to the Nihon Keizai Shimbun on the 12th, Honda announced this investment plan on the same day. Of the total 8 trillion yen, 5 trillion yen will be invested in electric vehicles and software. 3.5 trillion yen will be allocated to research and development costs, and 1.5 trillion yen will be invested in facilities and related areas.

Honda aims to produce more than 2 million electric vehicles annually by 2030. This corresponds to about half of Honda's production volume of 4.13 million units last year. Initially, in 2024, Honda plans to launch a commercial electric vehicle the size of a kei car priced in the 1 million yen range, followed by sales of general-purpose electric vehicles.

In the Chinese market, which accounts for 40% of Honda's global sales, Honda plans to release 10 electric vehicle models by 2027. In the North American market, including two electric vehicles jointly developed with General Motors (GM) in the United States in 2024, Honda plans to sell several electric vehicle models after 2027. Honda also announced plans to establish dedicated electric vehicle production lines at its North American plants, in addition to China.

Honda also announced that it will start operating a demonstration production line for next-generation solid-state batteries from 2024. Solid-state batteries replace the electrolyte that transfers ions between the cathode and anode with a solid instead of a liquid, making them a next-generation battery that is more advanced in terms of safety and performance compared to conventional batteries. Honda is accelerating its electric vehicle development with the goal of producing all new cars sold in 2040 as either EVs or fuel cell vehicles (FCVs).

Last month, Honda also agreed to a business partnership with Sony in the electric vehicle sector. Honda and Sony plan to establish a new company within this year for electric vehicle development and sales, with the first model scheduled for sale in 2025. Honda will be responsible for vehicle development, production, and after-sales service (A/S), while Sony will handle sensor, communication, and entertainment technologies.

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