Japan's Honda Outlines Global Strategy for Electric Cars

TOKYO, Japan (AP) - Honda is preparing for an electrification in North America. Two models developed in collaboration with General Motors will be available next year. A larger EV on a new platform with be released in 2025. This was originally announced a year before.

Toshihiro Mibie, President of Honda Motor Company, said on Wednesday that he believes the importance society attaches to being kind to the planet will continue to grow.

Mibe, a Tokyo-based Honda executive, told reporters that the company will continue to invest and partner with other companies in order to achieve such goals.

Honda's goal is to have all of its models in the world run on hydrogen fuel cells or electric by 2040. It aims at producing more than 2,000,000 EVs a yea by 2030.

In Japan, the demand for EVs is gradually increasing. An EV based upon the small N-ONE will be available in 2025. In the next year, two more EVs are expected.

Honda Motor Co. will launch three EVs in China next year. These are the e-NS2, e-NP2, and a concept that was unveiled at the Shanghai auto show.

Honda plans to introduce seven additional EVs in China by 2027. Honda wants to sell 100% electric vehicles in China by 2035.

Tesla and BYD, two of China's largest automakers, are now the dominant players in the electric vehicle market. Even consumers who were previously sceptical about EVs are now buying them, particularly in the U.S., China, and parts of Europe, as well as Australia.

The question is whether Japanese car manufacturers like Honda Motor Co. and Toyota Motor Corp. will be able dominate the market, as they did historically with gas-guzzlers.

Analysts say that a car will always be a vehicle, and the know-how gained from auto manufacturing is still relevant in the new electric age. Some analysts claim that it is a completely new game, and there are many opportunities for new players.

Toyota's EV bZ4X was recalled for a defect in the wheel hub bolts. This could lead to the wheels detaching, causing an accident. Globally, about 2,700 cars were recalled. The model has been re-released and no crashes have been reported.

It was a painful reminder that such mistakes can be made when venturing out into uncharted territory with a new flagship model. Toyota had previously relied on hybrids that switch between a gasoline engine and an electric motor as well as fuel cell vehicles powered by hydrogen.

Toyota President Koji Sato, who assumed office in this month, acknowledged that Toyota had fallen behind in the sale of EVs throughout the world.

Battery weight is a major drawback to the development of EVs. Batteries require expensive components, like rare earths.

Honda intends to leverage its strategic partner with Hanwa Co. a Japanese trading firm to ensure stable supply of nickel, lithium and cobalt for batteries, according Mibe.

Honda North America will be using batteries from General Motors, and a joint-venture with LG Energy Solution in South Korea. Honda will produce electric models in America at three of its plants in Ohio including the Marysville facility.

According to the U.S. Inflation Reduction Act signed by President Joe Biden in 2013, to qualify for full credits, EVs have to be assembled in North America and a certain portion of their battery components and minerals must come from North America.

Honda is working to develop solid-state batteries, Mibe added. Most EVs are now powered by lithium-ion battery technology.

Honda's platform for 2025 is called the 'E&E Architecture', which stands for 'electrical and electronic'. It refers to software, connectivity, and services that are used while driving, and updated over time. In this field, automakers will compete.

Mibe stated that Honda had dealt with the recent shortages of computer chips, which have affected all automakers. This was partly due to restrictions relating to the coronavirus epidemic. Honda and TSMC, the largest semiconductor manufacturer in the world, have reached a basic deal to prevent future shortages.