Japanese automaker Honda announced Tuesday that it will spend 5 trillion yen ($40billion) on research over the next decade, primarily to shift to green electric cars.
Products and services currently in use would make up more than half the R&D budget at 8 trillion yen ($64 Billion) and would be allocated to each market, including the United States, China, and Japan.
North American efforts will be focused on a collaboration between General Motors and Honda Motor Co., under which Honda Motor Co. will co-develop two full-size to mid-sized EV models that will go on sale in 2024.
Honda will offer an electric car at a fraction of the cost of gasoline models by 2027 under its alliance with General Motors.
Major automakers are increasing their electric vehicle offerings in response to climate change concerns. They also shift to alternative fuels like biofuels or hydrogen fuel cells.
Honda will launch 30 electric vehicle models globally by 2030. According to Asimo autos, Honda sedans, and Gold Wing bikes, the company aims to produce more that two million vehicles each year.
They will cover all models of pickup trucks and powerful sports cars.
Toshihiro Mibe, CEO of Honda, stated that Honda will provide “the same kind of behind-the wheel fun that our customers have come and expect from Honda.”
Honda will introduce 10 new electric cars in China by 2027, a country where the prospects for electric vehicles are particularly bright.
Honda will begin with small commercial vehicles such as delivery trucks in Japan, which is dominated by gasoline/electric hybrids.
Officials stated that companies will be more likely to invest in such projects due to the Japanese government’s sustainability goals.
A small model, for commercial use, in the 1,000,000 yen ($8,000 price range) will be available in Japan in 2024. Other electric vehicles, including sports, will follow suit for regular consumers.
Honda expects to be a leader in next-generation batteries by 2020.
It will also create related software as electric vehicles require a charging infrastructure.
Honda, like other automakers has suffered losses during the coronavirus epidemic. It expects an operating profit of 800 billion Japanese yen ($6.4billion) for the fiscal year that ends in March.