Honda switches tack to favour hybrids over EVs

Honda has announced it will introduce 13 new petrol-electric hybrid models that will be based on an all-new, low-cost architecture that boosts fuel efficiency over current-generation hybrids.

But the hybrid investment comes at the expense of Honda’s original plan, which outlined that by 2030 EVs would account for 30 per cent of its total sales.

Just last year the Japanese firm said it had earmarked an incredible 10 trillion yen ($A110 billion) to help it develop its next-generation all-electric vehicles.

That R&D investment has now been dialled back by 30 per cent to seven trillion yen ($A75b) that Honda will begin spending from now until 2031.

Honda says some of that money will now be invested in new but more affordable dual-motor e:HEV hybrid technology, plus a range of state-of-the-art combustion engines.

Announcing its radically revised plan to investors at a presentation in Tokyo, Honda said that the next-generation architecture will be lighter, feature all-wheel drive and underpin small, medium and large vehicles, with the first next-gen hybrid slated for production from 2027.

First launched in Japan and North America, the key to the enhanced affordability will be the use of Honda’s latest low-cost batteries and e-motors.

When it comes to efficiency, the Japanese car-maker says that its new e:HEV tech will be up to 10 per cent more efficient than current hybrids.

Instead of focusing on ramping up the number of EVs it sells, Honda’s boss Toshihiro Mibe says Honda was on track to sell more than 3.6 million cars by 2030, out of which 2.2m will be powered by its next-gen e:HEV hybrid.

Curiously, that 3.6m is a huge drop on the 4.1m cars the brand sold in 2024, which was 11.4 per cent down on the year before.

Honda also revealed it will play catch-up with its rivals when it comes to autonomous driver aids by teaming up with Chinese supplier Momenta, mirroring similar partnerships with Mercedes-Benz and GAC Toyota.

Even though it’s dropped its 30 per cent EV mix by 2030 strategy, Honda says it remains committed to becoming carbon-neutral by 2050.

Confirming that it still believes that battery-electric cars remain the best solution to slash emissions, even beside its own hydrogen fuel-cell technology, Honda announced that it would show off production versions of its Honda 0 Series EV at the 2026 CES Consumer Electronics Show in January next year, shortly before they land in dealers.

Honda has already announced that the 0 Series family will begin with both a sedan and an SUV but will quickly expand to seven models by 2030.

Key tech launched with Honda’s next-gen EVs include advanced aerodynamics, a lightweight construction and ultra-thin energy-dense batteries that maximise space within.

Steer-by-wire and advanced chassis tech will also star as part of the 0 Series offering.

Honda Australia has yet to confirm any EV locally but has embraced the car-maker’s hybrid tech, with the HR-V, ZR-V, CR-V, Civic and Accord all offering variants that run the car brand’s current e:HEV hybrid tech.

In the first four months of this year Honda Australia has sold 5331 cars, the figure representing a 9.2 per cent slump over the same period last year.

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