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On the issue of electrification transformation, to this day, Honda in the end think clearly how to do it?

Over the past two years, watching Volkswagen, Toyota, Nissan gave their own solutions one after another, or high-frequency out of the electrification of new products, or shares in Chinese car companies to achieve the technology of bending the road to overtake, or simply take advantage of China's industrial chain to push forward, following the Honda e, Honda has also tried many times to the market to launch a new purely electric car.

But in general, compared to peers, Honda for the transformation of the underlying logic, more based on the introduction of new policies and give a response program. In terms of taking the initiative, the intensity of the offense doesn't seem to be quite enough.

In the past two days, the news about Honda to stop the development of new electric vehicles, and again in the public opinion level made a lot of noise. Everyone feels that Honda is increasingly failing to understand the pace of market change when it comes to electrification transition. At a time when most car companies are actively engaged in the development of electric vehicles, Honda is still really headstrong.

Today, the automotive industry has reached a consensus on its goals regarding the electrification transition, and regardless of how regional markets at all levels are thinking about the transition at this stage, the development of EVs is always essential. Taking a long-term view of the issue is what every automobile company should do.

Even if Honda is stubborn, bucking the trend is not the thing to do now. In other words, as long as you're in a business environment, most of the incentives to stop developing EVs have specific regional issues in mind.

Some time ago, Honda thought about re-embracing hybrids because of the global electrification slowdown, and now Honda claims to be stopping development of some new EV models, which must be based on the backdrop of the U.S. market's end of EV tax credits, while in China, Honda is trying to find ways to make a mark on electrification, which must be related to China's new energy market as a whole.

Overseas Markets Suddenly Change, Honda Moves with the Trend

In the past two years, news about Honda's transformation plan has become nothing new . While the whole industry has been plunging into the fields of intelligence and electrification, and each of them has been shouting very exaggerated slogans, Honda seems to be particularly active.

One of the most memorable times was at the 2025 International CES, when Honda showed off its 0 series of concept EVs, including the 0 Saloon and 0 SUV, and everyone assumed that Honda was planning to put the mass production of the new cars in Honda's dedicated EV center in Ohio, which means that Honda's plans for the future are finally closer to those of its friends.

However, in terms of the reality that overall attitudes towards electrification change and change globally, really, what car companies claim to be doing at each stage of the game is probably just as much of a signal as can be given at that point in time.

Not only Honda, alone in the face of the increasingly slow transition across Europe and the decline of support for the electric vehicle industry, when the major car companies re-introduced a new plan in order to slow down the pace, in fact, we can see that the electrification of the early and the year for the environmental protection of the idea of the disconnect.

Therefore, for Honda's temporary change of heart, even if no one said, we should know that there must be involved with the general environment. And Honda's actions, say nothing can not be separated from the real status quo of the development of electric vehicles in the United States.

But it is also because of this, really have to let people worry about, Honda in the electrification transition on whether to do out of two-handed preparation.

On the one hand, when the 17-year U.S. electric vehicle tax credit policy announced the end, from September 30, the existing $7,500 electric vehicle tax credit will be canceled, $4,000 used electric vehicle credit will also be canceled, Honda can be very quickly called off the subsequent electric vehicle research and development, in time to stop the loss. On the other side of the coin, shouldn't Honda take a proactive approach to change in other global markets?

Not to mention Honda's situation in China, it's hard to say whether all of Honda's responses overseas have resulted in tangible benefits.

On June 16, 2022, Sony and Honda officially signed an agreement, each holding 50% of the shares, will focus on the field of mobile mobility, the establishment of a new joint venture company, full name "Sony Honda Mobility Inc.

But in March of this year, according to their own published financial reports, the company's operating loss of 52 billion yen, equivalent to about 2.6 billion yuan. Don't look at this money is not much, but in the income column shows 0, coupled with the new car Afeela debut after no waves of market feedback, we can almost foresee, Honda and Sony's cooperation, in the short term are difficult to see results.

On the other hand, with Honda Motor CEO Toshihiro Mibu said as early as the end of 2023: due to changes in the business environment, the company is shelving plans to jointly develop an affordable electric car with General Motors Co. A Honda Prologue based on GM's Ottonen platform is probably not likely to be the one to stir the waters in the marketplace.

What exactly is all this imagery saying? It's not just saying that the win-win partnerships Honda needs for its electrification transition for overseas markets are missing too much fertile ground for cultivation. General, Sony's technology to help and Honda's car-making philosophy of deviation, once encountered policy impact and consumer demand decline phenomenon, directly into the Honda transition is not good at all.

The Chinese market, that's another story.

Back in May of this year, Honda'sFinancial report meeting, in view of the current industrial development, Honda was very certain that it was going to cut back on its investment in electric vehicles and shift more of its R&D spending to hybrid products. The original plan to invest 10 trillion for pure electric vehicle R&D was also reduced to 7 trillion yen after adjustments.

Meanwhile, between 2027 and 2030, Honda plans to release 13 next-generation HEVs during this period, synchronizing its drive to improve fuel efficiency by 10 percent and reduce hybrid system costs by 30 percent (compared to 2023.) The positioning of the Honda 0 brand has also changed, and in addition to the original pure EVs, Honda's new hybrids will also be included under the Honda 0 brand.

Yes, against the backdrop of these new plans being rolled out, it doesn't seem so outlandish for Honda to be so adamant in calling a halt to the development of some EVs. But since the evolution of the world landscape has taken a different track, the coin will always have its two sides.

Overseas, no matter how Honda put down the electrification transformation of inputs, as everyone in China, compared to see Honda deep in the sales quagmire difficult to find a way out, more concerned about is always, when Honda can really penetrate the new energy market in China everything that happens.

For Chinese users to build a car, rather than follow the past thinking to build a car, not because of the times change, policy changes and catering to build a car. This year, Toyota and Nissan have already proved their ability to build the EVs that Chinese consumers want, so for Honda, there's nothing more important than keeping up with the pack.

In Honda's view of the world, perhaps the purpose of “cash in technology” and “maintain brand tone” must be ranked in front of the capture of market share, for this reason, counting the past few years, just like Honda overseas, ride on the operation of General Motors, Sony, all the launch of electrified products with a clean slate. Electrification products are clear with the flavor of Honda, but a little less realistic undertones.

From the new energy points in order to get a EA6, VE-1 or XN-V/MN-V, to the later e:NP1/S1, and now the new car under the Ye brand, at every stage, in the face of the evolution of the Chinese car market, the new car iteration of the level of enhancement seems to be very in line with the expectations of Honda, but I have to do not say that, in essence, still has a strong Honda characteristics.

When dealing with the changing needs of Chinese EV users, rather than being forced to do new car R&D because of the status quo, Honda is continuing the Honda-led, locally-modified R&D approach that it has implemented in the global market. The Chinese market is so unique, and the speed of consumer change is so fast that Honda can't keep up with the pace.

But how would Honda feel if its inability to change its habits meant that China's new-energy vehicle market would be difficult for Honda to keep up with?

In North America, because of the introduction of new policies to make new energy subsidies to zero, thus making Honda to give up the idea of developing electric vehicles. It's an honest choice between making money on the side and spending it without purpose. But in China, it's not like that.