Honda Motor(US:HMC) Zhong Guo Qi Che Bao Wang·2025-07-17 07:57Group 1 - Honda has decided to halt the development of new electric vehicles, which is surprising given the competitive landscape where rivals like Volkswagen, Toyota, and Nissan are advancing their electric solutions [3][4] - The decision to stop electric vehicle development may be influenced by the recent termination of the $7,500 electric vehicle tax credit in the U.S., prompting Honda to adopt a strategy of timely loss mitigation [3][4] - Honda's previous collaboration with Sony to form a new mobility company has not yielded significant results, with reported operational losses of 52 billion yen (approximately 2.6 billion RMB) [4] Group 2 - Honda is preparing to invest in the Japanese chip manufacturer Rapidus to secure a domestic supply of chips for its next-generation vehicles, with the investment expected to reach several billion yen [5][6] - The partnership with Rapidus aims to ensure a stable supply of automotive chips and is part of a broader strategy to reduce chip procurement costs by 20% and overall electric drive system costs by 30% [7][8] - The investment in chip development reflects a shift in the automotive industry towards high-value chip production, as traditional automakers evolve from hardware integrators to collaborative developers of software and hardware [7][8] Group 3 - Honda's decision to pause electric vehicle development while investing in automotive chips is seen as a cost-reduction and efficiency-enhancing move, aiming to maintain cash flow and build future competitiveness [7][8] - The investment in Rapidus signifies a strategic shift towards "technological sovereignty," moving from reliance on external supply chains to controlling the production of critical automotive chips [8] - Honda's actions may provide insights for traditional automakers navigating the crossroads of electrification and intelligent technology in the global automotive industry [8]