Recently, Honda held a press conference to unveil its 2025 global business plan. President Toshihiro Mibe personally introduced a series of initiatives centered around the electrification of its vehicle lineup.

The plan reveals that, in response to the current slowdown in the growth rate of the global pure electric vehicle market, Honda will revise its product investment strategy. It now anticipates that the global sales share of pure electric vehicles in 2030 will fall short of the previously set target of 30%. Simultaneously, Honda announced the reinforcement of its hybrid strategy, planning to introduce 13 new-generation hybrid models worldwide from 2027 to 2030. By effectively executing this strategic pivot, Honda aims to increase its four-wheel vehicle sales to over 3.6 million units by 2030, with hybrid vehicles accounting for 2.2 million units as the primary product. This signifies that hybrid vehicles will emerge as the cornerstone driving Honda's future sales growth.

In fact, due to weaker-than-expected demand for pure electric vehicles, automakers such as Toyota, Volkswagen, General Motors, Ford, Volvo, and Mercedes-Benz have also announced adjustments to their electrification strategies and plans to develop hybrid models. In recent years, pure electric vehicles have faced hurdles like lagging charging infrastructure, range anxiety, and high prices. Consequently, global demand for pure electric vehicles has begun to decelerate. Conversely, hybrid vehicles are gaining increasing popularity in the global market, winning over many consumers with their absence of range anxiety and low fuel consumption. Data from third-party platforms indicates that in 2024, global electric vehicle sales reached approximately 17 million units, marking a year-on-year increase of roughly 25%. Among these, global pure electric vehicle sales totaled 10.4 million units, a year-on-year increase of about 14.3%; global plug-in hybrid vehicle sales reached approximately 6 million units, a year-on-year surge of approximately 57%; and global extended-range electric vehicle sales reached approximately 1 million units, experiencing a year-on-year jump of 78.7%, making it the fastest-growing powertrain type.

For Honda, North America has become the primary battleground for its hybrid models. In 2024, fueled by the US hybrid vehicle subsidy policy, Honda's sales in the North American market increased by 8%, with the share of CR-V hybrid models rising to 35%. In the European market, Honda's hybrid vehicle sales accounted for 30%-40% of total sales. In Japan's domestic market, Honda's hybrid vehicle sales comprised 46%-56% of total sales. While adapting to market trends, Honda is also accelerating its intelligent layout. Officials stated that Honda will independently develop a new generation of ADAS, leveraging the recognition and motion planning technologies amassed during the AD development process to ensure vehicles safely and comfortably reach their destinations, including on urban roads.

For the Chinese market, where electrification and intelligent development are thriving, Honda chose to collaborate with Momenta. The two parties will jointly create a new generation of ADAS tailored to China's road environment. Moving forward, all new models launched by Honda in the Chinese market will be equipped with this technology. Honda's strategic adjustment today is not only a direct response to current market demands but also a crucial step for maintaining its competitiveness during the transition to electric vehicles.

It's worth noting that even as Honda shifts its strategic focus to hybrid models, its commitment to pure electric models remains unwavering. The first model of the "Honda 0 Series" will debut in 2026, produced in Ohio, USA, and initially launched in North America, followed by releases in Asia, Europe, Africa, the Middle East, South America, and other regions. In the Chinese market, the second major model of the e:N brand, the GT, made its global premiere at the 2025 Shanghai Auto Show. In line with the "Toward 2030" strategy, Dongfeng Honda plans to introduce more than 10 new energy vehicle models by 2030.

In recent years, the automotive industry has undergone numerous transformations and challenges, with terms like price wars, intelligent driving, powertrain types, and solid-state batteries consistently captivating the automotive community's attention. The market environment remains unpredictable, prompting major automakers to continuously adjust their strategies to align with emerging market trends. Honda has emerged as the latest to do so.

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