Honda sets 2040 target date for 100% electric vehicles, new CEO says

Whether we like it or not, the days of gas-powered cars are numbered. In January, General Motors announced it planned to end the production of diesel- and gasoline-powered vehicles by 2035. The Detroit-based automaker said it will shift its entire new fleet to electric vehicles as part of a broader plan to become carbon neutral by 2040.

Now, Honda is following suit. This morning, Honda Motor said it’s aiming to increase its ratio of electric vehicles (EVs) and fuel cell vehicles (FCVs) to 100% of all sales by 2040, chief executive Toshihiro Mibe said on Friday, according to a report from Reuters.

Mibe made the remarks at his first news conference since taking the helm of Japan’s second-largest automaker at the beginning of April, Mibe said the company supported the government’s green goals.

The announcement comes after Prime Minister Yoshihide Suga pledged Japan would aim for a 46% cut in emissions by 2030 and look for ways to go even further, nearly doubling from its previous target.

“I believe it is the responsibility of an automaker to achieve our carbon-free goal on a ‘tank-to-wheel’ basis,” Mibe said.

Honda said it expects EVs and FCVs to account for 40% of sales by 2030 and 80% by 2035 in all major markets, including North America and China.

Honda’s announcement of its electrification strategy comes after Prime Minister Yoshihide Suga vowed Japan would aim for a 46% cut in emissions by 2030 and look for ways to go even further, nearly doubling from its previous target.

The target set by the government is “feasible”, Mibe said.

“While the government’s target is extremely difficult, I believe it is a feasible target from the viewpoint of Japan becoming carbon neutral in 2050,” he said. “As for Honda, we are in full support of this target – 46% -and we’d like to put all our efforts towards achieving the goal,” he added.

Meanwhile, in North America, Honda and General Motors said they will introduce two jointly-developed large-sized EV models using GM’s Ultium batteries in 2024. The two companies will launch a series of new EV models which feature a new EV platform dubbed e:Architecture.

Traditionally known for its fuel-efficient internal combustion engines, Honda launched its first mass-produced all-battery vehicle last August. Mibe added that Honda will invest a total of about 5 trillion yen ($46.3 billion) in research and development initiatives, including electrification, over the next six years, regardless of sales revenue fluctuations.