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Honda Is Buying Its Way Into EV Segment With $40 Billion And 30 Electric Models Globally By 2030
Honda Is Buying Its Way Into EV Segment With $40 Billion And 30 Electric Models Globally By 2030-August 2024
2024-02-19 EST 22:10:26

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Honda is done doing the with electric vehicles. Despite Japanese auto giants , and dragging their feet with electric cars early on, the companies swear that EVs are a priority. Like, . So, not to be outdone by its rivals, has committed $40 billion for EV R&D through this decade.

The goal is to have 30 electric models by 2030, including one EV in the U.S. priced . I’m unsure why the theme at Honda is suddenly thirty and flirty, but if that’s what it takes to get , count me in!

Honda CEO Toshihiro Mibe says the company will move fast, but I’m skeptical; it’s a big lift! The thing is, Honda won’t be lifting alone, as Bloomberg :

Another of [Toshihiro] Mibe’s pushes has been around changing Honda’s long-standing when it comes to developing and selling EVs. Mibe hinted at as much in his first after being promoted to the top role in February last year, saying as Honda pivots toward EVs, “time is of the essence and I would opt to use alliances and external insight to accelerate our shift.”

Last month, Honda it’s joining forces with tech giant to develop EVs slated to go on sale starting in 2025. And earlier this month, Honda and expanded their existing tie-up with to jointly develop affordable EVs in major global markets. The duo plan to introduce their first model — with a starting price below $30,000 — in North America in 2027.

The alliances Honda has steadily built are surprising, but it’s not clear if they’re pleasant or unpleasant surprises. What is clear is that Honda stands little chance without help. will bring expertise, while GM’s batteries will power two possible EV SUVs from Honda and Acura for the U.S. market.

Image for article titled Honda Is Buying Its Way Into EV Segment With $40 Billion And 30 Electric Models Globally By 2030

Not long ago, Honda would’ve scoffed at strategic alliances. That’s changing now that Honda realized EVs require a broad skill set and that Japan will be unable to source domestically. That’s probably a big reason Honda is still looking for partners in battery production and besides just General Motors. You can’t put all your cells in one basket.

Honda it’ll use its many alliances to bring prices down, per Bloomberg:

A major reason for pursuing such partnerships is cost savings. Along with GM, Honda is seeking to bring EV costs down to an extent that they reach price-parity with gasoline-powered cars.

“Once we’ve achieved large volumes of millions of EVs, we’ll be able to drastically reduce costs,” Mibe said.

But that could be Honda hedging against bad partnerships. I’m not even sure with ICE is a thing anymore. Not really. I’d love that it were, but we’ve been burned before.

has strung us along with the promise of affordable electric cars — and also unaffordable — but we’ve yet to see it. As Erik Shilling said, the proof will be in the pudding. The snack pack being pricing, because a truly cheap in the U.S. sounds sweet. Cheap first, sporty later.

Image for article titled Honda Is Buying Its Way Into EV Segment With $40 Billion And 30 Electric Models Globally By 2030

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