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Japanese car giant Honda targets EV expansion, earmarks billions for R&D

admin by admin
April 13, 2022
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Japanese car giant Honda targets EV expansion, earmarks billions for R&D
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As some major economies seek to reduce the number of diesel and petrol vehicles on the road, Honda and other automakers are trying to develop electrification strategies that will keep them competitive. ..

Aimur Kytt | Istock Editorial | Getty Images

Honda With plans to invest about 5 trillion yen ($ 39.9 billion) in electrification and software technology over the next 10 years, Japanese automobile giants aim to launch 30 electric vehicle models worldwide by 2030. I am.

The company said in a statement on Tuesday that about 3.5 trillion yen will be used for R & D expenses and 1.5 trillion yen will be used for investment.

Honda aims to produce more than 2 million EVs annually in 2030. The company announced that the total R & D budget for this period will be about 8 trillion yen, or about 63.9 billion dollars.

Regarding production, Honda said it plans to install what are called “dedicated EV plants” in Guangzhou and Wuhan, China. The company also said it “is planning a dedicated EV production line” in North America.

In terms of batteries in North America, the company said, “Ultium batteries. GM.. Apart from this, Honda is exploring the possibility of establishing a joint venture for battery production separately from GM. “

Just last week, Honda and GM Announced to develop an affordable electric vehicle series It is based on the new global platform.

Read more about CNBC Pro electric cars

With some major economies aiming to reduce the number of diesel and petrol cars on the road in the coming years, Honda and other automakers will be electrified to catch up with new regulations and remain competitive. I’m trying to develop a strategy.

For example last month Ford He outlined plans to deploy three new passenger electric vehicles and four new commercial EVs in Europe by 2024. According to the company, it expects to sell more than 600,000 EVs annually in the region by 2026.

March 2021, Volvo Cars Said to be “Completely electric vehicle company” By 2030.

Elsewhere BMW Group He says he hopes that fully electric vehicles will account for at least 50% of their deliveries by 2030.

Such a goal would make these companies compete with Elon Musk’s companies. TeslaProduced more than 305,000 vehicles in the first quarter of 2022.

Another car maker planning to electrify Mercedes-Benz“We are ready to fully electrify at the end of the decade, as market conditions allow.”

On Monday, the company held an ESG conference for analysts and investors. In particular, he said he would like to cover more than 70% of energy demand with renewable energy by 2030.

He said this would be achieved by “deploying solar and wind power” on his site and signing more power purchase agreements.

In an interview with CNBC’s Annette Weisbach this week, Ola Kallenius, Chairman of the Board of Mercedes-Benz Group, explained some of the ideas behind his company’s strategy.

“The good thing about investing in renewables, especially those in high-yielding areas, is that many of these options are actually cheaper than fossil-based, when you look at cents per kilowatt hour when they’re up and running. It means that it is energy. ”

Carenius added that investing in renewable energy was a “good business.”

Tags: Alternative and sustainable energyBayerische Motoren Werke AGbillionsBusiness newsCarclimateClimate changeearmarksElectric carenergyenvironmentexpansionFord Motor Co.General Motors Co.giantHondaHonda Motor Co.Inc.JapanJapaneseLtd.Mercedes Benz Group AGPower generationRenewable energytargetsTeslaTransportation facilitiesVolvo Car ABwork
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