Honda is reducing its investment in electric vehicles due to slowing demand and will increase focus on hybrid models with 13 new hybrid launches planned between 2027 and 2030.

The company’s CEO, Toshihiro Mibe, stated that EV sales are now expected to constitute around 20% of Honda’s sales by 2030, down from the previous target of 30%.

Honda aims to sell approximately 2.2 to 2.3 million hybrid vehicles by 2030 and plans to develop hybrid systems for larger models later in the decade.

Additionally, Honda has postponed its C$15 billion EV factory project in Ontario by about two years but intends for all new car sales to be battery-powered or fuel-cell vehicles by 2040.