Honda to Phase Out All Gas Vehicles By 2040
Automaker announced plan to transition to an all-electric vehicle line up.
In the last few years, one word has dominated all aspects of the automotive industry: Electrification. Electric mobility is rapidly approaching. Most major automakers have committed to the concept in varying degrees. But Honda has been quiet in comparison. Now, the company has spoken up. Honda announced that will phase out all gas-powered vehicles, and plans to be all-electric by 2040.
This makes Honda the first in the Japanese auto market to definitively confirm phasing out all gas-powered vehicles. While 2040 seems a long way down, it is an ambitious timeframe.
“It’s a very bold target,” automotive research analyst Yachiyo Tanaka told Bloomberg. “Honda has pledged to pull ahead of other automakers by introducing the latest technologies.”
At the helm is CEO Toshihiro Mibe, and he’s definitely qualified for the task. In his 34-years working for Honda, he spent considerable time in research and development focused on when and how to successfully employ new innovation.
Mibe has shrewdly positioned Honda in the EV race. With this accelerated timeline they will be able to establish themselves in a new marketplace ahead of the pack; and will likely grab a larger piece of the pie in hybrid and electric vehicle sales. But to sustain long term, Honda will need build range of vehicles (and motorcycles) that befit the company’s reputation: excellent quality, reliable, safe, and innovative.
Japanese auto phenom plans to unveil three new electric motorcycles by 2024 and 10 new electric cars in China by 2026. Honda tested the waters with the Honda e, their first mass-produced EV. With a lukewarm reception and lackluster sales, it is likely they’ll be going in a different direction for future global sales.
They have shown that they can make a great hybrid with the Accord and CR-V. But can they deliver a quality, all-electric line up by 2040?
It does seem fast compared to Ford, which has set 2050 as their goal. And some were cynical of the timing. Takeshi Miyao, an analyst at Carnorama thinks this is a way for the automaker to make waves in the industry, gain traction over Toyota, and make a statement to shareholders.
“Honda had no choice but to unveil a plan that’s almost opposite to appeal to investors. It’s no use saying the same thing [as Toyota],” Miyao says.
While seeing the end of the ICE-era is not going to be easy, Mibe feels that Honda needs to make the move. He states that Honda’s push forwards electric is driven by the desire to continue making cars. To that end they needed to gauge “how fast we can make the EV business profitable,” Mibe said. “Companies that do it fast will survive.”
It is very Darwinian times in the auto industry, but it seems Honda has a clear idea of what their future looks like.
Stay tuned.
Photos: Honda
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