Honda to Make All Models Electric in China by 2030

[Asia Economy Reporter Yujin Cho] Japanese automaker Honda will switch all vehicle models launched in the Chinese market to electric vehicles starting in 2030.

On the 13th, Honda announced in a statement that it will stop selling gasoline vehicles in China from 2030 and convert all its launched models to electric vehicles.

Additionally, Honda aims to release 10 electric vehicle models produced through joint ventures with Chinese automakers such as Dongfeng Honda and GAC Honda within the next five years.

To achieve this, Honda plans to establish two dedicated electric vehicle factories by 2024 and strengthen cooperation with CATL, China's largest battery manufacturer.

Honda will also introduce models equipped with its self-developed advanced driver-assistance systems in China starting next year, and by 2030, it plans to offer all models available in advanced markets in China.

Last year, Honda sold a total of 25.31 million vehicles in China, of which 1.37 million were new energy vehicles (NEVs) including pure electric vehicles, plug-in hybrid vehicles (PHVs), and fuel cell vehicles (FCVs).

China's NEV sales volume last year increased by 11% compared to the previous year, marking the largest growth ever recorded. In terms of regional sales volume, China surpassed North America last year to become the largest market.

Honda, which has set a goal to replace all new vehicles launched worldwide with EVs and FCVs by 2040, has devised a new management strategy to target the Chinese market, which has emerged as the world's largest electric vehicle market.

Miyao Takeshi, an analyst at Japanese consulting firm Carnorama, said, "Establishing a strong growth foothold in China will be a prerequisite for achieving carbon neutrality," adding, "Targeting the Chinese market is the best scenario for transitioning into an electric vehicle manufacturer."