Honda will focus on hybrid vehicles and autonomous driving
Honda's domestic sales in Japan declined in 2025. Two-wheeler sales are in good condition, while car sales remain in fierce competition.
To revitalize its automotive business, Honda will launch three new-generation e:HEV models by 2027.
Honda's automotive business is very difficult. In 2025, domestic sales in Japan decreased by 7.3%, about 620,000 units, ranking third, behind Toyota and Lexus (combined about 1.5 million units) and Suzuki (about 730,000 units). Honda and Mitsubishi (down 1.3%) both fell below the previous year's sales, and Nissan is also restructuring its management team.
In the United States, Honda saw a slight increase of 0.5% in 2025 compared to the previous year, but sales in China dropped significantly by 20%. Battery electric vehicles (BEVs) are also in a disadvantaged position with no signs of improvement. The situation is similar in the ASEAN region.
The difficulties are reflected in the financial statements, and it is expected that Honda's automotive business will suffer a loss in the 2025 fiscal year.
One part of the reason is that the Chinese-owned Dutch semiconductor manufacturer "Nexperia" suspended supply, leading to an unfortunate reduction in production, but there is no denying strategic mistakes, such as discontinuing internal combustion engine vehicles and focusing solely on pure electric vehicles and fuel cell vehicles (FCEVs).
However, Honda has announced that it will reassess its pure electric vehicle strategy, strengthen the hybrid (e:HEV) segment, and introduce 13 next-generation hybrid models globally over four years starting from 2027. At the same time, it will introduce NOA using end-to-end technology in mass-produced vehicles starting from 2027.
NOA is an autonomous driving system, and autonomous driving is rapidly developing with the rapid development of AI.
Original: toutiao.com/article/1858417323304139/
Statement: This article represents the views of the author himself.