Honda to Abandon IC Engines – Global Electrification by 2040

In his first speech Honda Motor Co. President and Representative Director Toshihiro Mibe said the automotive giant will be all-electric globally by 2040.

As part of sweeping initiatives that will also drastically alter Honda’s motorcycle and small engine businesses that make Honda the world’s largest power unit manufacturer, Honda will also try to achieve carbon neutrality for all products and corporate activities Honda is involved in by 2050.

“My hope is to hear people saying, ‘We are glad Honda exists’ or ‘Honda will definitely do it.’ Honda wants to continue to be a company that people want to exist. That is what we want to achieve. To this end, we will establish a business structure which has resilience against changes in our business environment and speedily implement large-scale action plans. We will continue to work aggressively, while always asking ourselves what it means to maintain the unique characteristics of Honda, which is to pursue the very essence of things and to be original,” said Mibe.

Honda will focus on the following areas as the “three-pillars” of our initiatives:

1. Carbon neutrality
2. Clean energy
3. Resource circulation

In addition to the electrification of motorcycle and automobile products, Honda will expand the range of electrified products with the Honda Mobile Power Pack swappable battery and expand use of renewable energy by enabling infrastructure-linked smart power operations.

Honda will also be  promoting the use of hydrogen –  “multi-pathway of energy” that is a using a wide variety of energy sources including carbon-neutral fuels, which will be effective in all areas, including where electrification is difficult, such as with aircraft.

Honda is also pursuing research on material recycling and will take on the challenge of developing products made from 100% sustainable materials.

Honda will continue to work on the concept of “Honda eMaaS” through which Honda will contribute to the “freedom of mobility” and “expanded use of renewable energy” by connecting electrified mobility products and energy service. Honda eMaaS will be steadily pursued while focusing on three core areas:

• Expansion of the utilization of Mobile Power Packs
• Utilization of large-capacity batteries for electrified vehicles
• Application and implementation of fuel cell systems.

Electrification of Automobile Products

In order to achieve a carbon-free goal on a “tank-to-wheel” basis, as the responsibility of an automaker, Honda will strive to increase the ratio of battery-electric vehicles (EVs) and fuel cell electric vehicles (FCVs) within overall unit sales in all major markets of electrification combined to 40% by 2030, to 80% by 2035, and then to 100% globally by 2040.

“These are challenging targets, and to attain them, we must put forth a collective effort of our entire value chain. However, we decided to set high goals so that all of us share the vision of what we are trying to accomplish and take on challenges toward the realization of our goals,” said Mibe.

North America

In North America, Honda wants an EV/FCV unit sales ratio of 40% by 2030, 80% by 2035 and 100% by 2040. Leveraging the alliance with GM, Honda will pursue electrification in North America efficiently while taking advantage of the respective strengths of both companies

Honda and GM are jointly developing two large-sized EV models using GM’s Ultium batteries. Honda is planning to introduce these models to the North American market as model year 2024 vehicles, one from Honda brand and the other from the Acura brand. The US of course still has the highest emissions CO2 greenhouse emissions – by far – than any other nation, and uses far more fossil fuels per person than most other countries, according to the World Bank. 

Starting during the second half of the 2020s, Honda will launch a series of new EV models which adopt e:Architecture, a completely new EV platform led by Honda. These EV models will first be introduced to the North American market, and then to other regions of the world.

China

In China, Honda wants an EV/FCV unit sales ratio of 40% by 2030, 80% by 2035 and 100% by 2040. Honda has been introducing EV models while using local resources and will further accelerate this approach. Honda will introduce 10 Honda-brand EV models within five years. As the first of the 10 models, the mass-production model based on the Honda SUV e:prototype is scheduled to go on sale in spring 2022. Honda will also pursue further the use of local resources, which includes strengthening collaboration with CATL for the supply of batteries, which are core components for electrified vehicles.

Japan

In Japan, Honda will strive for an EV/FCV unit sales ratio of 20% by 2030, 80% by 2035 and 100% by 2040. Also, including hybrid-electric vehicles, we will strive to electrify 100% of our automobile unit sales in Japan by 2030. Including the first introduction of an EV model in the K-car segment in 2024, Honda will continue making progress in the electrification of mini-vehicles with both hybrid and EV models. For the procurement of batteries, Honda wants a “local production and local procurement” approach in Japan, which also will contribute to the growth of domestic industries in Japan.

In the area of mobility services (MaaS), Honda will introduce the Cruise Origin, an electric self-driving vehicle Honda is currently developing jointly with GM and Cruise, in the Japanese MaaS market in the mid-2020s. Honda will be starting development for testing in Japan his year.

Honda is conducting independent research on all-solid-state batteries as the next generation batteries which will realize high capacity and low cost. Honda will commence verification of production technology using a demonstration line, starting this fiscal year. The goal is to make all-solid-state batteries available for new models to be introduced in the second half of the 2020s.

Honda has a track record of offering customers “creative movers,” products in Japan such as Odyssey and StepWGN. This stance will not change in the world of EVs. “By combining digital technologies with Honda’s unique creativity and original designs, we will continue to add unique value only Honda can offer to our EVs,” said Mibe.

Electrification of Motorcycle Products

Honda will try to lead the motorcycle industry at the forefront of its environmental initiatives with an approach which will include not only electrification but also the improvement of the fuel efficiency of gasoline engines, use of biofuels and other strategies. In Honda’s view, the key to successful electrification of motorcycle products is to consider the battery, which is still expensive, separately from the motorcycle. In developed countries, where electrification is in strong demand by society or governments, Honda will pursue electrification with Mobile Power Pack, targeting business-to-business and business-to-national/local governments customers.

For personal-use customers, a large number of battery-swapping stations will be available and ensure convenience to users by making them compatible with EVs of other makers. To this end, Honda has established a consortium with other motorcycle OEMs in Japan and Europe, respectively, to develop technology standards for swappable batteries. Honda has a vision to expand Mobile Power Pack applications beyond motorcycles to power products and micro-mobility products. With this vision, we have begun demonstration testing in India using “rickshaw” type tricycle taxis.

In addition to introducing GYRO e: and GYRO CANOPY e: in the area of business-use bikes, scheduled for this year, Honda will introduce three new EV models in the area of personal use, in classes with engine sizes of below 50cc and below 125cc., by 2024.

Fuel cell

Hydrogen is projected to be popularized as a renewable energy source. Honda has a long history of researching, developing and commercializing FC technologies. While continuing collaboration with GM, Honda will attempt to reduce costs and realize a “hydrogen society” by expanding a lineup of FCVs and also by using FC systems for a wide range of applications, including commercial trucks as well as both stationary and movable power sources.

Safety Initiatives

Honda will go all out for zero traffic collision fatalities involving Honda motorcycles and automobiles globally by 2050. The major challenge is how to eliminate motorcycle collision fatalities, especially in emerging countries. As a company that has both motorcycle and automobile businesses, Honda says it will continue to strengthen research on safety technologies that enable motorcycles and automobiles to safely coexist and lead the way in realizing a collision-free society from the standpoint of both hardware and software.

Since many motorcycle collision fatalities involve automobiles, Honda will apply its omnidirectional ADAS (advanced driver-assistance system) to all new automobile models introduced in developed countries by 2030. By leveraging the knowledge and know-how we have amassed through research and development of Honda’s Level 3 automated driving technologies, it will advance the intelligence of ADAS, which increases the percentage of collision patterns covered by ADAS.

Particularly in emerging countries, there are many collisions that can be prevented through traffic safety education activities and by approaching the issue from the perspective of infrastructure and government policies. “Therefore, Honda will focus also on such areas including strengthening of educational programs and government/industry relations activities.”

Research & Development Initiatives

In order for Honda to keep making progress in its environmental and safety initiatives, Honda will “invest aggressively in the area of research and development.” Regardless of fluctuations in sales revenue, Honda will invest a total of approximately 5 trillion yen as R&D expenses over the next six years. In the field of research and development, including the system and capability for the development of digital technologies ,which needs to be further strengthened, Honda says it “will take necessary measures, including alliances, as quickly as possible.

“I believe that the “unique characteristics of Honda” are represented by the “value we derive by thinking through the very essence of things” and our “originality.” Honda is a company with a group of individuals who have the strong desire to be original. We value people’s dreams and continue taking on challenges toward ambitious targets. In so doing, we want to be a company that will always pursue the very essence of things and originality,” said Mibe.

“As of last fiscal year, we enabled Honda R&D to focus on the research of advanced technologies, and we are conducting research on leading-edge environmental and safety technologies for the realization of a society that aims for zero environmental impact and a collision-free society. Also, we are making progress with research on technologies which will expand mobility into the 3rd and 4th dimensions, into the skies, the ocean, outer space and the area of robotics. We will strengthen our original research of technologies by ensuring optimal allocation of resources into the area of advanced and cutting-edge technologies,” Mibe concluded.