The new CEO of Honda has confirmed today its goal to make electric vehicles (EVs) and fuel cell vehicles (FCVs) count for 100 per cent of all sales by 2040.
Chief executive Toshihiro Mibe, who joined the carmaker at the beginning of April, said the company will invest $46.3bn, or five trillion yen, in supporting the Japanese government’s green commitments.
“I believe it is the responsibility of an automaker to achieve our carbon-free goal on a ‘tank-to-wheel’ basis,” Mibe said at his first news conference.
Honda expects EVs and FCVs to account for 40 per cent of its sales by 2030, jumping to 80 per cent by 2035 in all major markets.
The carmaker’s EV strategy comes after prime minister Yoshihide Suga promised Japan would aim for a 46 per cent cut in emissions by 2030, nearly doubling from its previous target.
“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,” the CEO said, adding that “for Honda, we are in full support of this target – 46 per cent – and we’d like to put all our efforts towards achieving the goal.”
In Japan, Mibe said the company was aiming for EVs and FCVs to account for 20 per cent of sales by 2030, then quadrupling to 80 per cent by 2035.
The trillion-yen investment from Honda will fund research and development initiatives, particularly looking at electrification, over the next six years, regardless of sales revenue fluctuations.
Hybrid vehicles will also be on the agenda in its 2040 target, citing that changing conventional cars to hybrid is a “realistic solution” for the domestic market.
The ambitious CEO said the company will additionally aim to include advanced driver-assistance systems in all of its models in major markets by 2030.