TOKYO (AP) 鈥� Honda said Tuesday electric vehicle sales were slowing in the U.S., prompting the Japanese automaker to scrap its previous goal for EVs to be 30% of its global vehicle sales by 2030.
Instead of through the fiscal year ending in 2031, Honda is reducing that investment by 3 trillion yen ($21 billion) to 7 trillion yen ($48 billion).
Honda Motor Co. Chief Executive Toshihiro Mibe called the decisions 鈥渁 switch in the planned course,鈥� while stressing the long-term shift toward electrification remained unchanged, .
Mibe didn't mention U.S. President Donald Trump. But , have Japanese automakers scrambling to adapt.
鈥淭he environment surrounding the automobile industry is changing day by day. Uncertainty in the business environment is increasing, due particularly to the slowdown in the expansion of the EV market due to several factors, including changes in environmental regulations,鈥� Honda said in a statement.
Mibe did not give a specific timeline for a new course for electrification. But Honda, which makes the Civic and Accord car models, will be more aggressive in producing hybrids instead, he said.
贬辞苍诲补鈥檚 , for instance, will be adapted to produce both EVs and hybrids under the new plan.
Mibe pointed to 贬辞苍诲补鈥檚 motorcycle business as its core strength, as sales continue to grow in India, and 贬辞苍诲补鈥檚 global market share was steadily rising.
Mibe also said the Tokyo-based automaker was working on the use of various digital technology to strengthen safety, including assisted driving that will bring deaths from traffic accidents down to zero, a longtime Honda goal.
, as well as smaller automaker Mitsubishi Motors Corp., in a merger, collapsed earlier this year. Mibe told reporters talks were still ongoing to have the three automakers work together on developing technology. He remained vague and did not say when a deal might be reached.
. Its new chief executive, Ivan Espinosa, is promising a turnaround by speeding up decision-making.
贬辞苍诲补鈥檚 profit for the fiscal year through March slipped 24.5% from the previous year. But much of the negative impact is from external factors like tariffs and sliding sales in China.
鈥湵岽遣曰宀光�檚 profitability outlook remains robust, supported by cost-cutting initiatives,鈥� said Aaron Ho, equity analyst at CFRA Research.
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Yuri Kageyama is on Threads:
Yuri Kageyama, The Associated Press
