They are the first Japanese automaker to commit to such a plan.
Honda’s EV plans also include motorcycles.
Meanwhile, Toyota hasn’t made a similar commitment.
It’s indeed a risky decision. Critics of Honda’s move wonders if this is not simply a move to grab stakeholder attention. Even so, Honda plans to phase out the internal combustion engine from both its automobiles and motorcycles by 2040, but they won’t do it alone.
Unlike Toyota, which still strongly believes that hybrids are a way forward, Honda will eventually drop the ICE in favour of delivering only new EVs. While the EV take-rate in Japan is only 1%, the decision impacts the globe including North America. In fact, 56% of Honda’s revenues still come from this continent which explains in part why they’ve developed partnerships with other automakers include GM for their Ultium battery technology.
“We can’t postpone making an effort and then expect to reach the target at the last minute,” said Honda’s new CEO Toshihiro Mibe, 59, as reported by Automotive News (subscription required). He added that selling only zero-emissions vehicles by 2040 will “be an uphill struggle.”
At the moment, Honda sells the Honda e EV which was revealed to much praise last year. Its global target is of 10,000 units annually.