Honda Aims to Boost Hybrid Car Sales

TOKYO (Reuters) – Honda Motor aims to double its global hybrid car sales to 1.3 million vehicles annually by 2030 from 2023 levels. This plan will provide a "bridge" until fully electric vehicles become more widespread, the Japanese automaker announced.

From 2026, Honda will begin installing more fuel-efficient hybrid systems in compact and mid-sized models, revamping engines, platforms, and control technologies.

Demand for gasoline-electric hybrid cars is increasing, especially in Honda's best-selling market, North America, amidst slowing EV expansion. EVs are facing a tougher environment in the U.S., with President-elect Donald Trump's plans to cut support.

Honda wants to boost EV output to over 2 million by 2030 and focus on selling only EVs and fuel cell vehicles by 2040. Meanwhile, they view hybrids as a crucial short-term solution for the U.S. market, similar to rival Toyota.

"Hybrids will serve as a bridge until EVs become fully widespread," said Honda automobile operations chief Katsuto Hayashi at a media briefing. He emphasized that Honda aims to reshape the game in the hybrid market.

Honda's strategy includes cutting costs by using more shared parts across models. They project to double the per-vehicle gross profit for hybrid models at U.S. production sites after 2027.

Honda has not disclosed specific fuel efficiency targets but is striving for levels that are comparable to, or better than, the leading hybrid competitors, according to Koji Ninomiya, the head of its Automobile Development Center.

In China, where foreign brands are facing stiff competition from local EV makers like BYD, Honda plans to focus on EVs while also launching next-generation hybrids. The hybrid sales target for 2030 does not incorporate the Chinese market.