Honda Aims To Go All-Electric By 2040: Targets Electric Car-Only Portfolio

The decision to go all-electric by 2040 comes after Japan's Prime Minister Yoshihide Suga vowed to cut emissions by 2030, nearly double the previous target. During the press conference, Mibe said, "I believe it is the responsibility of an automaker to achieve our carbon-free goal on a 'tank-to-wheel' basis."

He further added, " While the government's target is extremely difficult, I believe it is a feasible target from the viewpoint of Japan becoming carbon neutral in 2050". With the new decision intact, Honda expects EVs and FCVs to be responsible for 40% of sales by 2030 and up to 80% of sales in five years after.

Mibe also pointed out that Honda is aiming for its EVs and FCVs to account for 20% of sales by 2030 and 80% by 2035. However, he also mentioned that Honda will also include Hybrid vehicles in the 2040 target, as it is a realistic solution for the domestic market.

To achieve Honda's target of complete electrification by 2040, Honda plans to invest 5 trillion yen (Rs 3,47,086 crore) in research and development initiatives, including electrification for the next six-years irrespective of the sales revenue fluctuations. Meanwhile, Honda and GM are jointly developing two large-sized electric vehicles and will use GM's Lithium batteries. These vehicles are planned for North American markets in 2024.

Thoughts On Honda's Plans To Go All-Electric By 2024

Manufacturers like Honda always set the benchmark in the automotive industry. Decisions like these will urge more automotive companies to take initiatives towards non-polluting vehicles. There are several brands in the world who have already set a target for complete electrification. Over the next few years, all other car manufacturers are expected to follow suit.