Honda exhibits off new hybrids for America because it absorbs $9 billion EV loss

To that end, Honda says it will launch 15 models with a new generation of hybrid powertrains by 2030, with most of them destined for here in North America. Yes, that includes a full-size SUV to compete in the D-segment with vehicles like the Toyota Sequoia or Chevrolet Suburban. Honda is targeting a 10 percent increase in fuel efficiency and a 30 percent reduction in cost for the new hybrid system, with the first of the new hybrids—the sedan you see here—planned to debut next year. Acura, Honda’s North American performance brand, isn’t being left out—at least one of the prototypes shown was a new hybrid Acura SUV.

Honda plans to rejigger its US factories so they’re all capable of producing hybrids; last year, we learned about the effort it made to incorporate BEV assembly into its Marysville, Ohio, plant. And a battery joint venture with LG Energy Solution that was supposed to make EV batteries will have part of its line converted to make hybrid traction batteries, now that Honda will need so many more of those.

Regional strategies

Honda’s plan for Japan looks very different from its plan for North America. Instead of lots of bigger hybrids, Japan will receive more electric Kei cars; you will probably recall the diminutive vehicle form factor was recently praised by President Trump, although my repeated inquiries to the US Department of Transportation have failed to uncover any actual progress toward his promise to make these tiny cars and trucks street-legal here.

Growth in China will require the company to “incorporat[e] the overwhelming speed of local businesses,” and, unlike the US, success here will require many more new EVs. India will be another important region, according to the company. There, the plan is for mid-size vehicles, but also products far smaller that can tempt some of Honda’s 6 million Indian motorcycle customers to trade up to something more expensive with twice as many wheels.