Honda Motor [HMC:US] announced a JPY5tr (USD40bn) investment in electric vehicles (EVs) development over the next ten years, as reported by Nikkei Asia on April 12. The spending is part of the Japanese company’s next-decade budget for research and development (R&D) worth JPY8tr (USD64bn). According to Honda, it plans to roll out 30 EV models globally by 2030 with an annual output of more than 2m units. Additionally, the firm stated that it will strengthen its partnerships with suppliers in North America, China, and Japan to secure steady supplies of liquid lithium-ion batteries.
Last April, Honda President Toshihiro Mibe pledged to exit the gasoline-powered vehicle business as of 2040. Mibe also stressed that the company must match the international trend of adopting stricter environmental rules. Amid the trend, other Japanese automakers have also released their roadmaps for shifting to electric cars. Last December, Toyota Motors [7203:JP] raised its budget for developing EV batteries from JPY1.5tr (USD11.9bn) to JPY2tr (USD18bn), promising to sell only zero-emission cars in Europe by 2035. In addition, the Japanese government doubled its purchase incentives for EVs to up to USD7,000 in November 2023, in a move to catch up with the subsidies in other major economies and speed up electrification. Japan expects all new passenger cars sold domestically to be eco-friendly by 2035, hybrid vehicles included.