FYI: Honda remains cautious about fully committing to electric vehicles despite a substantial investment in electrification.
Honda’s Cautious Approach to Full Electrification
Honda executives have shown a distinct hesitation to go all-in on electric vehicles (EVs) despite a firm commitment to invest heavily in the electrification future. The company’s strategy to launch several bespoke EV models faces internal skepticism due to concerns over current demand and charging infrastructure hurdles.
Committed But Cautious
Honda’s high-stakes pledge includes a whopping $64 billion investment aimed at developing seven unique EVs to be released by 2030. The ultimate goal is to switch to selling only electric and fuel-cell vehicles by 2040. Despite this ambitious plan, there seems to be a lack of consensus within the corporation that consumer demand justifies such an aggressive timeline. This ambivalence is palpable in the limited array of battery-powered vehicles currently available from Honda.
Domestic and International Concerns
In both Japan and North America, Honda remains tentative. In the U.S., Honda offers the Prologue and the Acura ZDX, both of which leverage General Motors’ Ultium platform. Whenever Honda’s top brass discuss the shift to fully electric vehicles, their tone often reflects a dual message: a commitment to electrification tinged with prudent skepticism.
Charging Infrastructure: A Major Hurdle
One of the primary reasons behind Honda’s conservative approach is the existing EV charging infrastructure. Kazuhiro Takizawa, CEO of Honda US, speaking at the Monterey Car Week, emphasized the importance of an adequate charging network to make EVs truly attractive to mainstream consumers. “You can’t force the customer to change their mind, really, and to some degree [you can incentivize] them but we just can’t force the people living in, say, the Midwest, with no charging stations,” he said. Takizawa believes that even with incentivizing programs, changing consumer behavior in regions with insufficient charging infrastructure is a daunting task.
Gradual Transition
Takizawa expressed the necessity of a gradual buildup of the EV ecosystem. “Even with incentives they will not change from ICE to BEV,” he noted, underscoring the challenges of pushing consumers towards EVs. Honda is keenly monitoring the pace at which new charging stations are being implemented, indicating that the rollout of EV chargers should be accelerated to promote broader adoption.
Global Perspectives and Market Realities
Shinji Aoyama, Honda’s Global Executive Vice President, also shared his views at Monterey. He pointed out that the slow progress in the EV market was anticipated, stating, “The slowing down of the EV market is not unexpected because the more EVs are running on the road, the more rapid the change of the entire ecosystem for EVs.” Aoyama reaffirmed Honda’s long-term commitment to EVs, acknowledging that short-term strategies may place less emphasis on electric models.
The Acura Vision
Honda showcased two performance-focused concepts at the Monterey event, one of which was the fully electric Acura Performance EV Concept. This visionary project provides a glimpse into the future of Acura’s electric lineup, hinting at a 2025 production timeline for a luxurious SUV-like coupe.
A Checkered Record in Europe
In Europe, the Honda e:NY1, based on the European HR-V crossover, has had mixed reviews. Riding on the bespoke e:N Architecture F platform designed for front-wheel drive vehicles, it faces stiff competition within its segment. Honda also faced setbacks with its earlier EV, the Honda e, which was discontinued after disappointing sales figures and customer feedback regarding its high cost and limited range.
Looking Forward
Most of Honda’s upcoming EV lineup will consist of crossovers and SUVs, reflecting current buyer preferences. Aoyama emphasized the critical role of charging infrastructure in consumer decisions, prompting Honda to partner with EVgo and Electrify America. This collaboration aims to provide access to over 100,000 fast chargers across the U.S. by 2030.
Sales Figures and Future Plans
Honda’s Prologue EV has seen promising sales, nearly reaching 5,000 units since its launch, while the Acura ZDX is gaining momentum since deliveries began in May. Acura also plans to introduce a fully electric NSX-like model by 2027 or 2028, potentially previewed by the Performance Electric Vision concept revealed in 2023.
Conclusion
Honda’s path to electrification is marked by a blend of bold investment and cautious optimism. The ongoing development and gradual infrastructure improvements are crucial steps towards an electrified future. Honda remains committed, albeit cautiously, to a future where EVs play a dominant role.
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William Kouch, Editor of Automotive.fyi
