Honda Plans To Invest Almost $65 Billion on EV Strategy Through Fiscal 2031

Core Insights - Honda Motor plans to invest approximately 10 trillion yen ($64.4 billion) in its electric vehicle strategy over the next decade through fiscal 2031 to compete with Tesla and Chinese rivals [2][6] - The Japanese automaker aims for electric vehicles (EVs) and hydrogen-powered fuel-cell electric vehicles (FCEVs) to constitute 40% of its global auto sales by 2030, with a production target of 2 million EV units by that year [4][6] Industry Context - Japanese car manufacturers have traditionally focused on hybrid vehicles but are now increasing their EV production despite some companies scaling back due to rising costs and declining demand [3] - Chinese EV firms are gaining market share by launching more affordable models, intensifying competition in the EV market [3][6] Competitive Landscape - Honda's investment comes as Tesla implements new strategies to boost demand, including discounted financing for its Model Y [5] - Honda's American depositary receipts (ADRs) experienced a 2.7% decline to $32.94, although they have risen 6.6% in 2024 [5]