Honda to scale back on EV

TOKYO, May 20 (Reuters): Honda Motor said on Tuesday that it was scaling back its investment in electric vehicles given slowing demand and would be focusing on hybrids, now far more in favour, with a slew of revamped models.
Japan's second-biggest automaker after Toyota Motor also dropped a target for EV sales to account for 30 per cent of its sales by the 2030 financial year.
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"It's really hard to read the market, but at the moment we see EVs accounting for about a fifth by then," CEO Toshihiro Mibe told a press conference.
Honda has slashed its planned investment in electrification and software by that year by 30 per cent to 7 trillion yen ($48.4 billion).
It's one of a number of global car brands dialling back EV investment due to the shift in demand in favour of hybrids and as governments around the world ease timelines to meet emission rules and EV sales targets.
US President Donald Trump has, for example, revoked a Biden administration executive order that sought to ensure all of new vehicles sold in the United States by 2030 were electric.
Honda plans to launch 13 next-generation hybrid models globally in the four years from 2027.