EV Demand Slows, Honda Prioritises Hybrid Technology
REPUBLIKA.CO.ID, JAKARTA – Japanese automotive manufacturer, Honda Motor Co., is beginning to shift its electrification strategy amid slowing demand for battery electric vehicles (BEVs), particularly in the North American market. Rather than aggressively pursuing fully electric cars, Honda is now choosing to strengthen the development of hybrid technology as a bridge to full electrification.
This shift in direction was directly affirmed in the company’s global strategy presentation delivered by President and CEO of Global Honda, Toshihiro Mibe, in Tokyo, Japan, on Wednesday (14/5/2026).
During the presentation, Honda introduced two latest prototypes, namely the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype. These two models mark that hybrid technology is now Honda’s main focus for the next few years.
Honda stated that the new generation of hybrid vehicles is built on a completely new electrification system, starting from the platform, drive system, to electric all-wheel drive (AWD) technology. The latest generation is targeted to be gradually marketed starting in 2027 in various major global markets.
The company is targeting to launch 15 new models based on the latest generation of hybrid technology by the end of fiscal year 2030. Honda claims that the energy efficiency of these vehicles has increased by about 10 percent compared to the previous generation, without sacrificing the driving characteristics that are the hallmark of the brand.
Honda’s move to strengthen hybrid technology also shows an adjustment in strategy amid the slowdown in the pure electric vehicle market. Previously, Honda was known to be quite aggressive in promoting the development of BEVs, including large investment plans in North America.
However, Honda is now postponing plans to build an electric vehicle and battery plant in Canada, which was previously valued at around 11 billion US dollars or equivalent to IDR 191 trillion. The postponement was made because the demand for electric vehicles in the United States is considered not to have grown as expected.
Not only that, Honda also canceled the production of three new electric vehicle models for the North American market. The company had even decided to postpone the start of electric vehicle production in Canada from the initial target of 2028 to about two years later.