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Honda Will Spend $ 64 Billion On R&D While Developing Electric Ideas – By ASC


Honda Motor Co Ltd Japan plans to spend $ 64 billion on research and development over the next decade, the company said on Tuesday, setting an ambitious target to launch 30 electric vehicle models worldwide by 2030.

Honda Motor Co Ltd Japan plans to spend $ 64 billion on research and development over the next decade, the company said on Tuesday, setting an ambitious target to launch 30 electric vehicle models worldwide by 2030.

Its goals include producing about 2 million electric vehicles a year by 2030, aiming to gain a share of the fast-growing market for electric vehicles, led by Tesla Inc, while Japanese carmakers risk lagging behind European and US competitors.

“As far as resource investment over the next 10 years, we will invest about 8 trillion yen in research and development spending,” said Honda Chief Executive Toshihiro Mibe, referring to the $ 64 billion equivalent value.

Honda said it wants to create a dedicated electric vehicle production line in North America, where it will also procure Ultium batteries from General Motors Co.

It is also considering a separate joint venture company for battery production there, in addition to its GM partnership.

Last week Honda said it and GM would develop a series of low -priced electric vehicles based on the new joint platform, expanding plans for GM to start building two electric SUVs for Honda starting in 2024.

The push towards electric vehicles has prompted him to hunt for partners to optimize costs and share technology.

“This puts them in good company with many other makers who have made big battery announcements … eventually the world will abandon internal combustion engines,” said Christopher Richter, an analyst at CLSA.

“Given their size, I’m glad they’re working with General Motors.”

The bulk of the 8 trillion yen investment is allocated to electrification technology and software. That includes about 43 billion yen on the demonstration line for the production of solid state batteries, which are targeted to begin in the spring of 2024.

HYBRID ‘WEAPONS’

Honda and other Japanese carmakers have long said that even if they use electricity, they won’t give up on older hybrid technology.

Hybrid proponents point to many markets, especially in emerging countries, where the infrastructure to support battery electric vehicles will come for a long time.

“Absolutely not this is the end of hybrids and the replacement of all hybrids with EVs,” Mibe told the presentation.

“We’re going to develop our current hybrids and use them as weapons in our business.”

Honda’s plans to make 2 million EVs annually are in anticipation, said analyst Seiji Sugiura of Tokyo’s Tokai Research Institute.

This is because Toyota Motor Corp has targeted sales of 3.5 million such vehicles by 2030 and Nissan Motor Co is targeting half of its cars to be electric by the end of this decade.

In just a year of work, the Honda Mibe boss has made some bold statements.

In March, the company said it would partner with Sony Corp. to develop and sell electric vehicles, which aim to start selling the first model in 2025.

Last year he unveiled a 2040 target for electric vehicles and fuel cells to make up all global sales.

Honda shares were down 0.2% on Tuesday, outperforming the Nikkei 225 index, which fell 1.8%.

($ 1 = 125,4400 yen)

(Reporting by Satoshi Sugiyama and Maki Shiraki; Editing by Edwina Gibbs and Clarence Fernandez)

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(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)

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