Honda Is Giving Up on the All-Electric Dream

 

Citing massive losses and a cooling market, the Japanese auto giant is backing away from an all-electric future in a huge blow to the EV industry and a sign that the road to clean cars just got a lot bumpier.

 

Honda just dealt a huge blow to the all-electric dream. In a stunning reversal, the Japanese auto giant has announced it is rethinking its electrification strategy, signaling that battery-electric vehicles (BEVs) are no longer the holy grail of its future.

 

The move is a major setback for the EV industry, which is already reeling from the September 30 expiration of federal tax credits that made electric cars competitive with their gas-powered counterparts. For years, the auto industry, mesmerized by the success of Tesla, has been in an arms race to go all-electric. Now, one of its biggest players is pumping the brakes. Hard.

 

“BEVs are not the goal, better electric vehicles are a pathway to achieving carbon neutral, not necessarily the only pathway,” Honda Australia president and CEO, Jay Joseph, recently told the publication Drive. “BEVs will continue to improve, we’re working on solid-state batteries, but our goal is carbon neutral, not battery electric vehicles.”

 

Full story:

https://gizmodo.com/honda-is-giving-up-on-the-all-electric-dream-2000640532

 

 

Japan can't compete with China, China is just too far advanced with a lower cost of labour and materials,  

 

Even Toyota's EV's are made in China.

33 minutes ago, Rimmer said:

Honda Is Giving Up on the All-Electric Dream

 some will say that's the right decision, others will say that's a bold move, but i would say it's resignation because they can't compete with china's electric cars ...

 

Enclosed is an article fleshing out what Honda have said.

 

They appear to still be flogging the dead horse... Hydrogen.  Even Hydrogen manufacturers are saying their future production is not intended for EV's, but road freight and other public service type vehicles.

 

They also mention synthetic fuels and other unspecified ways to achieve carbon neutrality. The only synthetic fuel plant is run by Porsche in Chile.

 

In my humble but educated opinion, Honda are wrong.  Akio Toyoda was also wrong when he said EV's would never take off and wrong again when he said in 2024 EV's would never achieve more than a 30% market share.  All signs suggest he may be proven wrong in the not-too-distant future, as battery EVs continue to gain traction.

 

The International Energy Agency (IEA) reports that conventional electric cars made up over 20 percent of global sales in 2024 and are on track to surpass 25 percent this year. While China largely drives demand, Europe is also making substantial gains. According to the European Automobile Manufacturers' Association, EVs accounted for 17.5 percent of new car sales in the first half of 2025, up from 13.9 percent in the same period last year.

 

Honda Explains Why 'Electric Cars Are Not the Goal'

Agree with this statement, hybrid is the way to go:

 

Faced with this brutal reality, Honda is turning to a strategy that, until recently, was mocked by EV purists. To achieve its carbon neutrality goals, the company will now lean heavily on hybrid vehicles, joining Toyota, whose cautious, hybrid-first approach was seen as outdated just a few years ago. Now, it looks prescient.

2 minutes ago, CatCage said:

Agree with this statement, hybrid is the way to go

 

Faced with this brutal reality, Honda is turning to a strategy that, until recently, was mocked by EV purists. To achieve its carbon neutrality goals, the company will now lean heavily on hybrid vehicles, joining Toyota, whose cautious, hybrid-first approach was seen as outdated just a few years ago. Now, it looks prescient.

 

Of course Hybrid is the way to go. 

 

The CEO of BYD has said so. Toyota has been saying it  for years. Who wants a limited range EV when you can get a Hybrid with excellent range of 2100 miles.

 

Honda is just following what China's BYD and Toyota have already decided.

39 minutes ago, JBChiangRai said:

Japan can't compete with China, China is just too far advanced with a lower cost of labour and materials, 

100% agree.

13 minutes ago, Cameroni said:

 

Of course Hybrid is the way to go. 

 

The CEO of BYD has said so. Toyota has been saying it  for years. Who wants a limited range EV when you can get a Hybrid with excellent range of 2100 miles.

 

Honda is just following what China's BYD and Toyota have already decided.

 

We've been through this Cameroni, BYD have not said Hybrid is the way to go.  They are pursuing this strategy in a limited number of European countries only.  You know this.

5 minutes ago, JBChiangRai said:

 

We've been through this Cameroni, BYD have not said Hybrid is the way to go.  They are pursuing this strategy in a limited number of European countries only.  You know this.

 

BYD sold more Hybrids than EVs in 2024, they're merely following the money. Across the board.  

 

https://www.reuters.com/breakingviews/hybrids-snag-precarious-pole-position-byd-2024-10-03/

16 minutes ago, CatCage said:

Agree with this statement, hybrid is the way to go:

 

Faced with this brutal reality, Honda is turning to a strategy that, until recently, was mocked by EV purists. To achieve its carbon neutrality goals, the company will now lean heavily on hybrid vehicles, joining Toyota, whose cautious, hybrid-first approach was seen as outdated just a few years ago. Now, it looks prescient.

 

14 minutes ago, Cameroni said:

 

Of course Hybrid is the way to go. 

 

The CEO of BYD has said so. Toyota has been saying it  for years. Who wants a limited range EV when you can get a Hybrid with excellent range of 2100 miles.

 

Honda is just following what China's BYD and Toyota have already decided.

 

Hybrids have a tiny 1kWh battery. They have the added expense of an electric drivetrain with very little added efficiency.

 

PHEVs with 70-100km of EV only range make more sense but not compared to a full EV

 

BYD don't make Hybrids only PHEVs.

 

Japanese manufactures can only make EVs using Chinese tech no wonder they are always knocking EVs

 

https://asianews.network/japanese-automakers-to-incorporate-latest-chinese-tech-into-evs/

8 minutes ago, Cameroni said:

 

BYD sold more Hybrids than EVs in 2024, they're merely following the money. Across the board.  

 

https://www.reuters.com/breakingviews/hybrids-snag-precarious-pole-position-byd-2024-10-03/

 

They sold more PLUG-IN Hybrids that full EV's in 2024 - True

 

They are not following the money "Across the board", their strategy and end game is EVs - PERIOD!

Honda won't be missed, and obsolete in 5 years or less.   Follow the USA's new auto manufacturing plan, ban the competitions and just sell their crap in country ... 

 

China, the king in cheap electronic gadgets and now lithium battery production and gov handouts.

That seems to be about it.

 

Chinese ICE vehicle engines are nowhere near as refined, or as good as the Japanese creations.

 

Toyota and Honda seem to have something up their sleeve, it will be interesting to see what transpires for China to copy.......😉

3 minutes ago, transam said:

China, the king in cheap electronic gadgets and now lithium battery production and gov handouts.

That seems to be about it.

 

Chinese ICE vehicle engines are nowhere near as refined, or as good as the Japanese creations.

 

Toyota and Honda seem to have something up their sleeve, it will be interesting to see what transpires for China to copy.......😉

 

I read that Toyota will be using BYD's PHEV combination in future vehicles, that would seem to be the opposite of what you're suggesting?

 

BYD DM-i: Toyota's New Hybrid Powerhouse | AutoCango Blog

Just now, JBChiangRai said:

 

I read that Toyota will be using BYD's PHEV combination in future vehicles, that would seem to be the opposite of what you're suggesting?

 

BYD DM-i: Toyota's New Hybrid Powerhouse | AutoCango Blog

Could be, but I reckon with Toyota engineering improvements where necessary, they not stupid.....😋