Honda Motor plans to invest nearly 10 trillion yen (which is approximately $64.4 billion) in its electric vehicle (EV) strategy through the fiscal year 2031. This significant investment reflects Honda's commitment to catching up with its Chinese rivals and Tesla in the rapidly evolving EV market¹.

Here are some key takeaways from the article:

- Honda's Target: The Japanese automaker aims to have EVs and fuel-cell EVs (FCEVs) account for 40% of its global auto sales by 2030.

- Increased Production: Honda plans to increase its production of EVs to 2 million units by 2030.

- Competition and Challenges: As EV makers face slowing growth and intense competition from cheaper Chinese models, Honda's investment comes at a crucial time. Chinese EV firms have been launching more affordable models and dominating their domestic market.

- Confidence in EV Shift: Honda expressed confidence that the shift toward EVs will continue to proceed steadily, especially in the area of small mobility products like motorcycles and automobiles.

- Tesla's Measures: Meanwhile, Tesla has introduced measures to revive demand, including discounted financing for its Model Y after a series of price reductions across its vehicle lineup.

This substantial investment by Honda underscores the company's commitment to sustainable mobility and its determination to play a significant role in the global transition to electric vehicles.