Honda to invest 5 trillion yen in EVs in 10 years; 30 models in the world by 2030
Honda announced on the 12th that it will invest 5 trillion yen in electric vehicles (EVs) and software in 10 years until 2030. Approximately 8 trillion yen will be invested in the overall research and development expenses, including those other than EVs. Aiming to popularize EVs, 30 models will be available worldwide by 2030. In 2040, Honda plans to switch all new car sales to EVs or fuel cell vehicles (FCVs) and to withdraw from gasoline vehicles. Allocate investment to EV and further promote electrification.
At a briefing on the electrification of automobiles held at Honda's headquarters in Minami Aoyama, Tokyo on the 12th, President Toshihiro Mibe emphasized, "We will develop high-value products around the world." At the inaugural press conference held in April 2021, Mr. Sanbe declared that he would "ditch gasoline" in 2040. This time, it is in the form of presenting concrete measures to achieve the target.
Honda's research and development expenses for the 10 years from the fiscal year ending March 2012 to the fiscal year ending March 2021 amounted to approximately 7 trillion yen, and the company plans to increase this to 8 trillion yen over the next 10 years, a little over 10%. Of the 5 trillion yen to be invested in EVs and software, 3.5 trillion yen is expected to be spent on research and development, and 1.5 trillion yen is expected to be related to facilities.
By 2030, 30 EV models will be launched in the global market. The annual production volume is planned to exceed 2 million units. In Japan, in the first half of 2024, a light EV commercial vehicle will be released at the 1 million yen level, and a multi-purpose sports vehicle (SUV) will also be released. Honda plans to launch 10 models by 2027 in China, which accounts for nearly 40% of Honda's global sales. In North America, in 2024, we will introduce two EV models jointly developed with General Motors (GM), which will use the Altium battery of the U.S. company General Motors (GM). Sell multiple models. In addition to China, the company also plans to set up EV-dedicated lines at its plants in North America.
The battery procurement system will also be strengthened. For China, the company will deepen cooperation with China's Ningde Times New Energy Technology (CATL), the world's largest in-vehicle battery company. In North America, the company will consider establishing a joint venture with a company other than GM. In Japan, they agreed to procure batteries for light EVs from the Chinese Envision AESC Group (Zama City, Kanagawa Prefecture).
In order to spread the use of EVs, we will expand collaboration with other companies in order to share the cost and speed up the market introduction. In addition to GM, which strengthened cooperation in the joint development of EVs in 2020, in March 2010, it announced that it would establish a joint venture company for EVs with the Sony Group. At a briefing on the 12th, Executive Vice President Shinji Aoyama, who is in charge of electrification, said, "By developing EVs with Sony, we aim to release a high-value-added model in 2025."
Toyota has announced that it will invest a total of 8 trillion yen in electric vehicles, including hybrid vehicles (HVs), from 2022 to 2030. Among them, 4 trillion yen will be invested in EVs. The company will spend 2 trillion yen on on-board batteries and aim to sell 3.5 million EVs, which is 30 to 40% of the total, in 2030. Nissan Motor will invest 2 trillion yen in the development of electric vehicles over the next five years until FY2014. By fiscal 2030, Toyota plans to electrify 50% of its new vehicles on a model basis.
