Honda (HMC.US) sets target of doubling hybrid vehicle sales to 1.3 million by 2030 from current levels
1min read Intelligent Finance learned that Honda (HMC.US) said on Wednesday that its goal is to double its global hybrid vehicle sales to 1.3 million units annually by 2030, providing a "bridge" for the popularization of fully electric vehicles. The company said it will start installing new, more fuel-efficient hybrid systems on compact and midsize models from 2026, and will overhaul engines, platforms and control technologies.
As the expansion of electric vehicles slows, demand for hybrid vehicles is growing, especially in Honda's most profitable North American market. The company is facing a tougher environment for electric vehicles in the U.S. as President-elect Donald Trump plans to cut support for them.
While Honda aims to raise its electric vehicle production to over 2 million units by 2030 and only sell EVs and fuel cell vehicles by 2040, its target is to upgrade its hybrid vehicles as a near-term key in the U.S. market, similar to its rival Toyota (TM.US).
"Hybrid vehicles will serve as a bridge before the full electrification of vehicles," said Katsuto Hayashi, Honda's operating officer, at a media briefing. "Maybe when you think about hybrid vehicles, you think about the Toyota Prius, but I believe we can change the game." He added that Honda has no plan to change its development and investment strategy based on Trump's policy.
The company said it will cut costs and double the gross profit per vehicle of its hybrid models in the U.S. production base after 2027 by using more shared parts across models.
Honda did not reveal specific fuel efficiency targets, but Koji Ninomiya, head of its vehicle development center, said the company aims to achieve "equivalent or better" levels compared with its best hybrid competitors.
The company said it is focusing on EVs in the Chinese market, where foreign brands are struggling against local EV makers such as BYD, but will also launch next-generation hybrid vehicles. Honda said its 2030 hybrid vehicle sales target does not include the Chinese market.
