The Japanese automaker's CEO, Toshihiro Mibe, unveiled the new strategy on Thursday, emphasizing Honda's unwavering belief in the effectiveness of EVs as the future of transportation.

Honda is determined to compete in the small electric vehicle and motorbike segment, with a firm conviction that EV adoption will continue to rise steadily. The company intends to capitalize on the impending "period of EV popularization," projected to occur in the second half of the 2020s. To achieve this, Honda plans to introduce seven new electric models and establish a comprehensive supply chain, including batteries, while advancing EV technology and facilities.

By implementing this robust investment plan, Honda aims to achieve a 5% return on sales for its EV business by 2030, striving to make it self-sustaining. The highly anticipated "0 series" models are expected to play a vital role in Honda's strategy. The automaker recently unveiled two concept vehicles, the Saloon and Space-Hub, at CES in January. The Saloon is set to become Honda's flagship EV, with a model closely resembling the concept scheduled for launch in 2026, starting in North America before a global rollout.

Following the Saloon, Honda plans to globally launch seven EV models, spanning from small to large vehicles. In China, Honda aims to introduce ten new EVs by 2027, with the ambitious goal of having electric vehicles represent 100% of auto sales in the region by 2035. Additionally, Honda revealed its new "Ye Series" EVs, designed to compete with Chinese automakers like BYD.

Honda's EV lineup will also include a series of smaller models, starting with the N-Van e, a commercial mini EV, which will be available in Japan this fall. The company plans to introduce small-sized EV models where demand is high, including personal mini-EVs in 2025.

To ensure a sustainable supply chain, Honda intends to strengthen partnerships for lithium-ion batteries while keeping costs under control. The automaker will commence battery production in mid-2020 through joint ventures, such as its partnership with LG Energy Solution in the US. This joint venture plant aims to produce up to 40 GWh of battery capacity annually, utilizing lightweight and compact battery packs specifically designed for Honda's 0 series EVs.

In the latter half of the decade, Honda plans to further expand its battery business by establishing a vertically-integrated supply chain. It aims to commence in-house production of EV batteries in collaboration with GS Yuasa and secure battery materials, such as cathode materials from POSCO Future M and separators from Kasei, from Canadian suppliers through new joint venture plants. Honda aims to decrease the cost of EV batteries produced in North America by over 20% compared to current costs by 2030, with a production capacity that can support around 2 million EVs planned for that year.

Honda has set ambitious targets for EVs and fuel cell EVs (FCEVs), aiming for them to make up 40% of its global auto sales by 2030 and ultimately achieving 100% by 2040. The automaker's investment in EVs comes at a time when several other automakers, including Toyota, are increasing their focus and investments in EVs to adapt to the changing industry landscape.

Although Japanese automakers have been considered laggards in the EV transition compared to some of their global counterparts, Honda and Toyota are determined to reverse this trajectory with their newfound commitments and investments. While Tesla and other automakers already have a significant share of EV sales, Honda and Toyota are striving to strengthen their position in this growing market.

Only time will tell if Honda's ambitious investment plan and strategic initiatives will enable it to capture the global market share it seeks. The automaker believes that the future of the industry lies in EVs, and it is leaving no stone unturned to remain competitive and relevant in the electric vehicle revolution.