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Honda will double investments to promote EV Shift

REUTERS/David Dee Delgado/File photo
A Honda logo is seen during the New York International Auto Show Press Preview in Manhattan, New York City, USA, March 27, 2024.

Tokyo, May 16 (Jiji Press) – Honda Motor Co. said Thursday it will invest about 10 trillion yen to promote the development and production of electric vehicles in the decade through fiscal year 2030, double the amount the Japanese automaker set aside in its previous plan. April 2022.

The company decided that further spending is needed to promote the shift to electric vehicles, including ensuring a stable supply of batteries, which is crucial for gaining a competitive advantage in the EV market.

Honda can secure enough money for EV investments as it becomes able to create capital thanks to rising sales of hybrid vehicles and motorcycles, President and CEO Toshihiro Mibe said at a news conference.

The automaker aims to expand global electric vehicle production to more than two million units per year by calendar 2030, and for all of its new car sales to consist of electric or fuel cell vehicles by 2040. It sold approximately 4.1 million units worldwide in fiscal year 2023. which ended last March.

Of the 10 trillion yen investment, approximately 6 trillion yen will be used for projects aimed at improving electrification technology and manufacturing capabilities, including the construction of an EV factory in Canada scheduled to come online in 2028.

The automaker will aim to reduce production costs of electric vehicles by about 35 percent, through the introduction of large-scale metal casting equipment that can reduce the number of parts involved in battery pack production.

The goal is to invest approximately ¥2 trillion in automotive software development to create advanced technologies related to driver assistance and accident prevention.

About ¥2 trillion will be used to create an EV battery supply chain in North America, Japan and elsewhere. This will enable internal battery production, which, combined with sourcing from external partners, will allow Honda to secure enough batteries for approximately two million electric vehicles by 2030.



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