Summary of Honda Briefing on Automobile Electrification Business

Summary of Honda Briefing on Automobile Electrification Business

• Honda will strive to transform its business portfolio by shifting focus from non-recurring hardware (product) sales business to recurring business in which Honda continues to offer various services and value to its customers after the sale through Honda products that combine hardware and software.
• Over the next 10 years, Honda will allocate approximately 5 trillion yen in the area of electrification and software technologies to further accelerate its electrification, including both R&D expenses and separate investments. Honda’s overall R&D expenses budgeted for this period will be approximately 8 trillion yen. 
• Honda is planning to launch 30 EV models globally by 2030 with production volume of more than 2 million units annually.
• Honda will build a demonstration line for the production of all-solid-state batteries with an investment of approximately 43 billion yen and further accelerate the research with a goal to start demonstration production in Spring 2024. 

Honda Motor Co., Ltd. today held a press briefing on its initiatives in automobile electrification business that included participation of the following Honda executives:

• Toshihiro Mibe, Director, President and Representative Executive Officer
• Kohei Takeuchi, Director, Executive Vice President and Representative Executive Officer
• Shinji Aoyama,  Senior Managing Executive Officer

A summary of the briefing follows:

1. Honda initiative for electrification

Honda is striving to be a company which serves as a source of “power” that supports people around the world who are trying to do things based on their own initiative and that helps people expand their own potential. To this end, Honda strives to realize “the joy and freedom of mobility” by seeking a “zero environmental footprint.”

＜Solidifying existing businesses＞

Over the past several years, Honda has been pursuing various initiatives toward the direction to “solidify existing businesses” and to “prepare for new growth” and these initiatives have begun showing positive results in the areas of products, businesses and new technologies.

• The structure of Honda automobile business has made steady improvement. As of today, the total number of variations at the trim and option level for global models has been reduced to less than one-half of the number in 2018 (Target: a reduction to one-third by 2025).
• As for cost associated with global automobile production, Honda is on track to achieve its 10% reduction target, compared to the cost recorded in 2018.

Honda will continue to accelerate its efforts to generate resources by solidifying existing businesses and invest such resources in electrification and the preparation for new growth.

＜Unique Honda approach＞

As the world’s largest power unit manufacturer with annual sales of approximately 30 million units of mobility products including motorcycles, automobiles, power products, outboard motors and aircraft, we aim to realize carbon neutrality for all products and corporate activities Honda is involved in by 2050, striving to eliminate carbon emissions from power sources of a wide variety of products. To this end, Honda believes that a multifaceted and multidimensional approach is needed, not a mere replacing of engines with batteries.

Including the utilization of swappable batteries and hydrogen as well as electrification of automobiles, Honda will offer a variety of solutions for all of its mobility products according to how its customers use the products in various countries and regions.

Furthermore, with the connected platform, which connects all these elements, Honda will enhance the convenience and efficiency of society as a whole.