Core Insights - Honda is reducing its EV investment by 30% from $69 billion to $48.4 billion through the 2031 fiscal year to stabilize its future in a slowing EV market [1][2] - The company will focus on increasing its hybrid lineup due to changes in environmental regulations and a slowdown in EV market expansion [2] - Honda's expected EV sales ratio for 2030 is now projected to fall below the previously announced target of 30% [2] Investment Strategy - Honda plans to launch 13 new hybrid models globally starting in 2027, aiming to sell 2.2 million hybrids annually by 2030 [4] - Despite the shift towards hybrids, Honda remains committed to achieving 100% zero-emission vehicle sales by 2040 [4] Market Context - In the first four months of 2025, EV sales in North America increased by only 5%, compared to 25% in Europe and 35% in China [3] - The International Energy Agency indicated that higher tariffs could further increase EV prices and slow down sales growth [3] Organizational Changes - Honda is mandating US employees to return to the office at least 80% of the time by October, emphasizing the importance of in-person work in a rapidly changing business environment [5]