It's becoming a fad. Over the last several years, most automakers have declared ambitious plans to convert most, if not all, of their lines to electric power, with a common deadline of 2030. Many automakers are now revising their EV transition plans, with Honda being the latest to do so. In a press conference in Japan today, Honda said that it will debut a next-generation hybrid powertrain in 2027, including a specialized system for heavy vehicles in the United States, and stressed the importance of hybrids as it slows its transition toward electric powertrains.
Honda's EV objectives were not as aggressive as other manufacturers', with the Japanese carmaker originally aiming for EVs to account for 30% of worldwide sales by 2030. However, the carmaker now considers that even this number is too high. Honda blames "uncertainty in the business environment" and "the slowdown in the expansion of the EV market," which it claims are the result of "changes in environmental regulations" and "changes in trade policies of various countries."
While EV adoption has not taken off as planned, Honda is finding good demand for its current hybrid cars and plans to invest even more in this market. Honda intends to improve its two-motor hybrid system, which will be combined with a next-generation architecture aimed at decreasing weight and a new all-wheel-drive electric drive unit with "highly precise and responsive motor control." Honda expects these developments to result in 10% greater fuel economy than its present hybrid system.
Honda claims that the North American market will receive a new hybrid system designed for bigger cars, which will give "powerful driving performance, high towing capability, and high environmental performance." Honda believes this will be available on goods later this decade, and we believe the next-generation Pilot is a potential candidate. Honda intends to debut 13 next-generation hybrid cars internationally over the following four years, beginning in 2027, and these new hybrids will wear the simpler "H mark" badge that was originally planned for Honda EVs.
Honda also intends to make its hybrids less expensive, with the objective of lowering the cost of its next-generation system by more than half compared to the system it released in 2018 and more than 30% compared to the system that will be installed in its vehicles in 2023. Honda expects that increased hybrid sales volume, as well as more efficient production techniques and the usage of more common parts across models, will help to reduce costs.
Honda also stressed its intentions for a new advanced driver-assistance system capable of handling functions such as acceleration and steering over a complete driving path, including highways and surface roads. Honda claims this new technology will be available in both EVs and hybrids in North America and Japan starting in 2027.