Honda will invest $40 billion in electric vehicle technologies

by Janine Mayers · Published August 24, 2022 · Updated February 13, 2024

13 April 2022

The Japanese automobile manufacturer Honda made the announcement on Tuesday that it plans to invest over $40 billion on electric vehicle (EV) technologies over the course of the next decade. This move is part of Honda’s effort to move away from the selling of conventional fuel vehicles entirely.

As consumers become increasingly concerned about the effects of climate change, more and more automobile manufacturers throughout the world are placing a greater emphasis on the production of electric and hybrid vehicles.

Honda has declared their intention to introduce thirty different electric vehicle models by the year 2030, with an annual production capacity of more than two million units.

It went on to say that it planned to invest around 39.9 billion dollars and approximately 5 trillion yen “in the field of electrification and software technologies to further accelerate its electrification” over the course of the next ten years.

The investment is the most recent move that Honda has taken toward achieving its objective, which was stated a year ago, of having electric and fuel cell vehicles account for 100% of all sales by the year 2040.

The announcement that Honda and Sony, a Japanese technological giant, would form a new firm to develop and sell electric vehicles was made one month ago. Sales of the first electric vehicle type that the new company would produce are scheduled to begin in 2025.

At the moment, around 10% of car sales in Europe are made up of electric vehicles (EVs), however in the United States, that ratio is only 2%.
Despite this, there is a growing demand for electric vehicles, and other major manufacturers, including Honda’s competitors in Japan, are spending money and resources in this sector.

At the beginning of this year, the auto alliance consisting of Nissan, Renault, and Mitsubishi Motors declared that they would be investing $25 billion in the sector, and they promised to release 35 new electric vehicle models by the year 2030.