 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Japanese automakers long known for their dominance in hybrid vehicles are diverging in their strategies for the electric vehicle (EV) market. While Toyota is preparing to expand its EV lineup with new models starting this year, Honda has scrapped planned EV production in North America, effectively stepping back from its earlier aggressive electrification push.
According to industry sources on March 17, Honda has canceled North American production plans for several next-generation EV models, including the Honda 0 SUV and Honda 0 Saloon from its upcoming “Honda 0 Series,” as well as the Acura RSX under its premium Acura brand.
The company had originally planned to begin production this year to significantly expand its EV lineup in the North American market. Instead, Honda has decided to maintain its existing hybrid-centered strategy.
Honda had previously announced a goal of producing only zero-emission vehicles—including EVs and hydrogen-powered cars—starting in 2040. However, the company appears to have shifted its strategy as EV adoption has progressed more slowly than expected.
The move comes at a cost, as Honda is writing off significant investments already made in EV development and production while refocusing on hybrid vehicles.
The company estimates that losses could reach up to 2.5 trillion yen (about $23.4 billion) for fiscal year 2026. If realized, it would mark Honda’s first annual loss in 69 years since its stock market listing in 1957.
Meanwhile, Toyota—another Japanese automaker that has long led the global hybrid vehicle market—is expected to take a different path starting this year.
Building on years of investment in EV-dedicated platforms and battery technologies, Toyota plans to gradually introduce new EV models beginning this year.
The company is particularly focused on establishing a stronger EV presence in the U.S. market, its largest overseas market.
Toyota plans to launch three EV models in the United States this year—including the bZ Woodland, C-HR, and Highlander—and aims to expand its market share through promotional campaigns and other sales initiatives.
알파경제 Kim Jisun Reporter(stockmk2020@alphabiz.co.kr)
