The Gas Engine Lives On: Honda Abandons Plan To Go Fully Electric By 2040

The company's boss admits the EV-only goal is 'not realistic' anymore.

2023 Honda Civic Type R Engine

Photo by: Honda

Adrian Padeanu

By: Adrian Padeanu

May 14, at 7:46am ET

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The Breakdown

Honda had planned to sell only EVs from 2040, but the target has now been abandoned.
The new plan is to launch 15 models with next-generation hybrid technology by March 2030.
Honda is working on four-cylinder and V6 engines for hybrid applications.
The company still wants to achieve carbon neutrality by 2050.

The beginning of this decade was chock-full of announcements from automakers pledging to sell only electric vehicles within a certain number of years. However, most companies were overly optimistic about their EV goals and have since had a change of heart. Although electric vehicle sales continue to rise globally, growth isn’t happening at the pace that much of the industry projected in the early 2020s.

Honda is the latest to join a growing list of carmakers that no longer pursue a combustion-engine-free lineup. Announced in April 2021, the goal of selling only battery-electric and fuel-cell vehicles by 2040 is no longer in place. Speaking with the media earlier today, CEO Toshihiro Mibe admitted it’s “not realistic” to go completely electric just 14 years from now.

‘Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.’

Photo by: Honda

Honda Will Launch 15 Models With Next-Gen Hybrid Tech

Although gas engines will live on beyond 2040, Honda still intends to achieve carbon neutrality by the middle of the century. In the meantime, the company is betting on a new wave of next-generation hybrids, with 15 models scheduled to launch by March 2030. Two of them were previewed today: a Honda sedan and an Acura SUV.

To bring those new models to market, Honda is investing 4.4 trillion yen (nearly $28 billion at current exchange rates) in hybrid powertrains built around four- and six-cylinder gas engines. Larger vehicles are expected to use an already announced V6 hybrid setup with 30 percent better efficiency and 10 percent stronger acceleration than current similarly sized ICE models. Mibe said the first model is due in late 2028 or early 2029.

Smaller hybrids will arrive first. Scheduled from 2027 onward, they’ll rely on a new four-cylinder engine. Honda is also developing a next-generation platform that shaves off 198 pounds (90 kilograms). To lower costs, parts commonality will exceed 60 percent across the models using the new architecture.

Honda Hybrid Sedan Prototype

2026 Honda Hybrid Sedan Prototype

Photo by: Honda

Acura Hybrid SUV Prototype

2026 Acura Hybrid SUV Prototype

Photo by: Acura

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Motor1's Take: It’s safe to say Honda is going through a rough patch. The cancellation of multiple EVs caused the company to post its first annual loss in nearly 70 years. Restructuring the electric side of the business has resulted in more than $9 billion in costs.

Honda is now shifting focus to a new family of hybrids as it tries to recover after canceling the 0 Sedan, 0 SUV, and the Acura RSX. The two Afeela models it had been developing with Sony are also dead before arrival. Japan's second-largest automaker knows the road ahead won’t be smooth, with the company’s head honcho admitting that “we are facing a very harsh business environment.”

Honda Is Investing In New Hybrids:

Honda's New Hybrids Will Sound Better Because Americans Like Loud Cars

Honda Wants to Make the 'World's Most Efficient' Hybrids

Honda Is Developing a Powerful Hybrid For America

Honda Is Developing New Gas Engines

Source: Honda

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