Honda Motor to spend $40 billion on electric vehicles, plans 30 models by 2030

Honda Motor will spend 5 trillion yen ($40 billion) on its push towards electric vehicles over the next decade as the Japanese automaker looks to make a bold advance into the next-generation of electric cars cars with concrete plans. The company will launch 30 EV models by 2030 with production volume of more than 2 million vehicles a year.

Honda will also build a demonstration line for the production of all-solid-state batteries with an aim to start production in 2024. The company had already stated its plans in June last year to phase out sales of gasoline-powered cars completely by 2040, becoming Japan’s first automaker to publicly say so.

Since then, in the following months, the company's newly appointed CEO Toshihiro Mibe has pushed the company’s drive into the electric segment, which has become increasingly competitive. As a part of the plan, Honda has been doubling down on the world's largest EV market - China.

In October last year, Honda announced its plans to launch 10 EVs in China under its ‘e:N Series’ within five years, with two of those models scheduled to go on sale this year. Additionally, the auto major pledged that all models that it introduces in China after 2030 will be electric. It further announced plans for several dedicated EV production facilities in the country.

The company is also looking at forging alliances in its journey towards electric transition. Last month, Honda announced a partnership with tech giant Sony to develop EVs that will come into the market starting 2025. The former's manufacturing prowess coupled with the latter's entertainment and sensor technologies will be a win-win combo for the market.

Earlier this month, Honda partnered General Motors Co to jointly develop affordable EVs in major global markets. The former is also exploring the possibility of creating a joint venture with another company for EV battery production.

(with inputs from Bloomberg)