Honda showcases its hybrid-centric automotive business plan with two new concept cars

The news for Honda wasn’t so good earlier this year, as they suffered significant losses that led to the cancellation of its next-generation 0 (Zero) Series battery electric vehicles, alongside a few others like its joint venture in Afeela under the Sony Honda Mobility company.

Honda had to do something about this, so it held a business briefing session that focused on the restructuring of the automobile business for the next three years, with the end goal to recover the operating income of a record high of more than 1.4 trillion yen by fiscal year March 2029, alongside the growth of the motorcycle and financial business.

READ: Honda cancels 3 planned BEVs, to strengthen HEV lineup

As part of this, Honda is going all-in with its hybrid vehicles. First, there will be 15 new models to be launched globally over the next three years, headlined by the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype, which is scheduled to come out within the next two years.

These will all be underpinned by the next-generation hybrid system, which will not only reduce costs by more than 30% compared to the current e:HEV powertrain, but it will also be able to improve fuel efficiency by more than 10% thanks to a next-generation platform and an electric AWD unit. Apart from this, the next-generation ADAS system is on track for its 2028 launch, and it will be part of more than 15 hybrid vehicles worldwide over the next five years.

The first of these new vehicles to include these new elements (hybrid drivetrain and ADAS) will be the next-generation Vezel (or HR-V), and the N-Box EV will launch sometime in 2028 for Japan. Apart from this, the Sport Line and Trail Line trims will be standard across its new vehicles, too.

Honda plans to launch several important vehicles for the Indian market from 2028 onwards, which include subcompact models (less than four meters long) and a mid-size model. The Chinese market will focus on utilizing more standardized parts and local tech, and more new energy vehicles (NEVs) that use local partners’ (GAC and Dongfeng) platforms.

Honda will also be following the triple halving aspect in development, which will effectively cut development costs, period, and man-hours in half. That means minor model changes (facelifts) and full model changes will arrive a lot faster compared to before, with an expected production efficiency increase by 20% over the next five years.

Eventually, Honda’s long-term goal is still to achieve carbon neutrality by 2050 with a multifaceted approach that combines EVs, hybrids, carbon-neutral fuels, and carbon offset technologies (hello, Toyota), alongside further research and development on EV platforms, the ASIMO OS, and the E&E architecture that responds to the needs of each country, customer needs, and market environment.

Honda’s motorcycle business still remains in the green, but they have a goal to expand to 60 million units by 2030, which includes product improvements using new technologies such as the Honda E-Clutch, and more.

Do you think Honda made the right move by going all-in with its hybrid vehicles and optimizations in its development process, or should Honda have stuck with its full EV plans despite the financial climate?

^{Photos from Honda}