Honda to Spend $64 Billion on R&D for Electric Vehicles

Honda wants to roll out at least 30 electric vehicle models globally by 2030.

By Reuters | Updated: 12 April 2022 17:00 IST

Honda to Spend $64 Billion on R&D for Electric Vehicles

Photo Credit: Reuters

Honda has no plans to give up on older, hybrid technology, even as it goes electric

Highlights

Honda plans to spend $64 billion (roughly Rs. 4,87,150 crore) on R&D
The company is trying to compete with market leader Tesla
Honda wants to make 2 million electric vehicles a year by 2030

Japan's Honda Motor Company said on Tuesday it plans to spend $64 billion (roughly Rs. 4,87,150 crore) on research and development over the next decade, laying out an ambitious target to roll out 30 electric vehicle models globally by 2030.

Its goals also include producing some 2 million electric vehicles a year by 2030. The strategy marks a push to take ground in the fast-growing market for electric vehicles, where Tesla leads and Japanese automakers risk falling behind traditional European and US rivals.

Honda and other Japanese automakers have long said that even as they go electric, they won't give up on older, hybrid technology. Proponents of hybrids point to the many markets — especially some emerging markets — where infrastructure to support battery electric vehicles will be a long time coming.

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"By no means is this the end of hybrids and the replacement of all hybrids with EVs," Honda Chief Executive Toshihiro Mibe told the presentation.

"We will develop our current hybrids and use them as a weapon in our business."

The bulk of the 8 trillion yen (roughly Rs. 4,84,990 crore) investment would be in electrification and software technologies. That includes some 43 billion yen (roughly Rs. 2,610 crore) of spending on a demonstration line for the production of solid-state batteries, with the aim of starting that in spring 2024.

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Shares of Honda finished up 0.7 percent at the close of morning trade in Tokyo, outperforming a 1.4 percent decline in the Nikkei 225 index.

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