#HondaEV #ElectricVehicles #AutoIndustryShift
Honda Motor Company Accelerates EV Strategy Amidst Industry Shift and Competition
Honda Motor Company is ramping up its North American electric vehicle (EV) strategy, despite the deceleration in EV market growth. In Q1 2024, EV sales accounted for only 7.3% of total new-vehicle sales, according to Kelley Blue Book. Industry analysts view this as a late entry into the game or a strategic move based on recent industry trends.
Honda has made significant strides in its EV transition. This spring, the Japanese automaker announced an $11 billion investment in a Canadian EV hub and an EV transformation of its Ohio operations. The $700 million investment in Ohio allows the company to produce both internal combustion engines (ICE) and battery electric vehicles (BEV) on the same line, providing flexibility as the market evolves.
Honda aims to have 80% of its vehicle lineup be EVs by 2035 and 100% by 2040. Critics argue that the company is already late to the EV transition and faces cost pressures. However, Honda's trusted brand reputation among consumers could be an advantage as doubts about EVs persist. A survey by Edmunds found that Honda finished fourth among trusted brands for EV production, with 8% of respondents indicating trust.
Perspective:
The comments section is filled with mixed reactions. Some praise Honda's commitment to EVs, while others question the company's ability to catch up with competitors. Many users express concerns about the affordability and practicality of EVs, highlighting the need for improved battery life, range, and charging station availability.
Data:
- General Motors (GM) no longer provides EV production targets and will build to market demand.
- Ford delayed about $12 billion in EV investments.
- The global EV market is expected to grow at a compound annual growth rate (CAGR) of 21.1% from 2024 to 2030.
Original Article: https://www.cnbc.com/2024/06/09/honda-may-be-americas-most-committed-ev-automaker-for-the-moment.html
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