Honda gives up the electric dream

Honda has just handled a major blow to the electric dream. In an amazing reflection, the Japanese auto giant announced that it rethinks its electrical strategy, indicating that Bevs is no longer the sacred cup in its future.

This step is a great setback for the EV industry, which already tends to have a tax expiration on September 30 that made electric cars competitive with their gas counterparts. For years, the car industry, which successfully proud Tesla, was in the armament race to go completely. Now, one of its largest players pumps the brakes. difficult.

“Bevs is not the target, as the best electric cars is a way to achieve neutral carbon, and not necessarily the only track,” said the President and CEO of Honda Australia, Jay Joseph, recently to the Al -Mansour car. “Bevs will continue to improve, we are working on solid state batteries, but our goal is neutral for carbon, not the battery electric cars.”

His statement confirms a dramatic strategic shift that was developed by the executive managers in Honda during Press conference August 6. They no longer bet on the farm on the future of an electric full.

The truth of a nightmare

The reason for the axis is simple: Honda EV strategy was a financial nightmare. During the press conference, the Honda EG -Fujimura CEO admitted that they were “very optimistic” in the EV market, noting the impact of the IRA and the “IRA Calm” and “calm the market” general. Fujimura said that the company “struggles with EV sales this year,” and needs to “accelerate the procedures” to meet the consumer’s expectations.

Financial results tell the true story. The last quarter of Honda was thrown on charges of 113.4 billion yen ($ 780 million) directly linked to its work. This included the losses on EVS sold in the United States and its massive deletion of EV models, the company that now starts from its future formation. The company is now expecting that its expenses for EV for the entire year will reach 650 billion yen (4.47 billion dollars).

Honda currently sells two models EV in the United States, Honda Progue and Acura Zdx. To sell it, the company was forced to provide huge incentives. According to industry data from Motor Intelligence mentioned by Automotive News, Honda spent more than $ 12,000 in promotional offers on each introduction and $ 21,000 on every ZDX sold by the last quarter.

Even with these huge discounts, the company’s market share has decreased.

Axis of the hybrid and hydrogen

These struggles are exacerbated by the expiration of the $ 7500 federal tax credit, a support that helped persuade many consumers of the designated shift. Without this, the high price of EVS stickers and the lack of reliable shipping infrastructure in many parts of the country becomes greater obstacles.

In the face of this brutal reality, Honda turns into a strategy, until recently, mocked by Purists EV. To achieve the goals of carbon neutrality, the company will now tend strongly on hybrid vehicles, as it joined Toyota, which was seen on its cautious and hybrid approach just a few years ago. Now, Presscient looks. A recent report issued by Globaldata indicated that between 2025 and 2035, almost every famous Honda model in America will be presented.

“I think at some point we will become everything that is Hijri, and is fully penetrated, but this is just another step in this particular transition,” Joseph emphasized leadership.

Honda also explores hydrogen -powered electric cars (FCEVS), which converts hydrogen into electricity on the plane. While FCEVS faces its own infrastructure and cost challenges, it only produces water vapor.

We took

Just a few years ago, bevs was the mania mania and the clear symbol of the race to remove carbon. Now, Honda’s decline is a new fact: The carbon neutrality path seems more complicated, and Bev’s strategy is only sacred.

Honda step not only affects the squad. It sends a warning signal via the auto industry that EV’s growth story strikes borders. If one of the largest car manufacturers in the world turns its bets, it may be followed by other companies, which slows down the shift from fossil fuels at a critical moment of climate targets.