How the EV era is challenging leading engine maker Honda

Core Insights - Honda is the world's largest engine manufacturer, powering approximately 27 million vehicles and other items, primarily with internal combustion engines [1] - The company is facing challenges in key markets, particularly China, and is struggling to adapt to the electric vehicle (EV) era, having been slow to release new models and relying on partnerships for technology [2][6] - Honda was once seen as an innovative leader in the automotive industry, known for both affordable cars like the Civic and high-performance models like the NSX, which challenged established European sports car manufacturers [3][4][5] Company Performance - The NSX represented Honda's capabilities at its peak, but the company has since lost its competitive edge, particularly as consumer preferences shift away from manual transmissions and traditional high-revving engines [5] - Honda's current EV strategy involves significant investment, with plans to allocate $65 billion globally, including $11 billion in Canada and $3.5 billion for U.S. facility upgrades [7] - In 2023, Honda was the second-best-selling hybrid brand in the U.S., trailing only Toyota, which may provide short-term volume boosts [8] Market Outlook - Experts express concern over Honda's ability to keep pace with the rapid shift towards battery-electric vehicles, indicating uncertainty about the company's long-term competitiveness in the evolving automotive landscape [9]