Honda is changing course: while the majority of the automotive industry is concentrating its efforts on all-electric power, the Japanese manufacturer is asserting that the battery-powered car is not an end in itself. The brand is now putting forward a multi-pronged strategy, in which hydrogen, synthetic fuels and hybrids remain the priority paths to carbon neutrality.
Honda revises its electric ambitions
The Japanese group has cut the budget initially earmarked for battery electric vehicles by 30%, from 10,000 billion yen. The target of 30% 100% electric sales by 2030 has also disappeared from the strategic documents. The brand’s communication is clear: “Battery electric vehicles are not the goal, but a path towards carbon neutrality”, explains Jay Joseph, Managing Director of Honda Australia.
However, this change of direction does not mean that the company is abandoning the sector. Honda is already marketing electrified models, but its managers believe it would be risky to bet solely on this technology. The manufacturer points out that recharging infrastructure remains unevenly distributed, slowing adoption in several strategic markets. According to Honda, hybrid vehicles remain the preferred solution for many drivers, particularly in Asia and North America.
At the same time, the brand is continuing its work on fuel cells, as demonstrated by the recently unveiled CR-V e:FCEV, which combines a 17.7 kWh battery with a hydrogen fuel cell, offering around 47 km of range in electric mode. Honda emphasises the complementary nature of these technologies, each adapted to a particular use and context.
Hydrogen and synthetic fuels as alternatives
Hydrogen remains a major avenue, shared by Toyota, Hyundai and BMW, who are announcing a fuel cell model for 2028. Honda is also considering internal combustion engines that run on hydrogen or carbon-neutral synthetic fuels. Toyota, Mazda and Subaru are already testing units that can run on liquid hydrogen or advanced biofuels. However, these options come up against a constraining reality: the lack of infrastructure – once again. At the end of 2024, there were just 1,160 hydrogen stations in service worldwide, concentrated mainly in Japan, South Korea and California. As for synthetic fuels, their production remains confidential and their cost does not yet allow mass marketing.
Meanwhile, sales of electric cars are growing rapidly. They will account for more than 20% of the global market and 17.5% of European registrations in the first half of 2025. Despite this momentum, Honda is defending a more balanced approach. “Even though battery electric vehicles are gaining ground, it is hybrids that are the choice of consumers today,” says Robert Thorp, Managing Director, Automotive, Honda Australia. It’s a position that sets Honda apart in an industry that is largely committed to battery power, and that reopens the debate on the relevance of a single technological transition.
Hopefully other manufacturers will see the light as Honda has.
Yea another big car manufacturer that can’t build EV… and they are trying to make us belive they will stop. Manufactjring it does not mean they will not sell it. In US honda cars have been using Chevrolet plateform to get their electrical car that seels pretty well. Strangely all old manufacturer can’t build EV only recent manufacturer like Hyundai or Kia could build successful cars
Well Honda’s goals were lofty for sure. The Saloon looks crazy and maybe not in a good way similar to the Cybertruck, just too far out for big sales numbers. Then there’s that little bug eyed Honda e. The only normal looking Honda EV is the one built by GM, and it is selling well.