Honda will invest $64 billion in vehicle electrification by 2030



Honda has announced a long-term approach toward electrification of its entire vehicle offerings through 2030 with around 10 trillion yen (well over $64 billion) investment in resources.

This massive investment is announced by Honda Motor Director, President, and Global CEO, Toshihiro Mibe at a press briefing on Honda’s initiatives for automobile electrification on Thursday. The Japanese automobile company plans to make EVs and FCEVs account for 40 percent of its global sales and produce more than 2 million EVs.


The 10 trillion yen investment is projected through this decade during the EV popularization period.

Here is the fund allocation:

  • 2 trillion yen for research and development to strengthen software-defined mobility.
  • Around 2 trillion yen will go to investments and capital contributions to EV value chains in markets including the US, Canada, and Japan.
  • 3 trillion yen will be used for the development expenditure and another 3 trillion on investments for areas in next-gen EV plants, motorcycle electrification, new EV model development, and dies fabrication.

Amid announcing these investment zones, the company said it could choose or adjust the fund based on requirements.

Honda laid out an investment roadmap in two phases. Through 2025, it planned to generate 12 trillion yen in operating cash flow by empowering its motorcycle and ICE/HEV businesses.

This cash flow will be allocated to EV business, ICE/HEV business, and new areas of investment. Honda is moving with the plan to buy back 780 billion yen worth of own shares over the four-year period from FY22 to FY25 to achieve a PBR of above 1 as soon as possible.


From 2026 to 2030, Honda will phase in full-blown conversion from ICE to EV. The automaker will earn the same level of cash as 2021-2025 by raising operating cash flow through increasing unit sales of motorcycles in emerging markets. ICE/HEV business will also contribute to that cash flow strategy.

Honda says it will steady resource investment in electrification and software to improve EV business growth.



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