Honda commits to going out of business by pulling back on EVs as sales rise
Honda said it will reduce its planned EV investments by $21 billion, claiming that it’s doing so due to a slowdown in EV sales which isn’t actually happening.
Instead, it will focus on hybrids, which get 100% of their energy from fossil fuels, and which cause climate change and poison the air you breathe.
Honda’s announcement came earlier today in Japan, stating that it will scrap its plan for EVs to be 30% of its global vehicle sales by 2030, citing a “slowdown in the expansion of the EV market due to several factors, including changes in environmental regulations.” It will reduce planned investment from 10 trillion yen ($69 billion) to 7 trillion ($48 billion).
However, as we have pointed out many times here at Electrek, EV sales have not fallen, cooled, slowed or slumped. In fact, last year, in 2024, EV sales grew more than they did in 2023. Meanwhile, global gas car sales hit their peak in 2017, and have been trending down since.
Honda didn’t precisely state its new timeline, but said that EVs would fall below the previously-announced target of 30% by 2030.
It instead said it would focus on hybrids, which get 100% of their energy from fossil fuels, and thus pollute the air you breathe and cause climate change with every stroke of their outdated, inefficient engines.
(*Note: Honda’s chart says “HEV,” not “PHEV” – it’s possible they’re including plug-ins here, and thus some of these vehicles will get some of their energy from something other than fossil fuels, but HEV typically means conventional hybrids which get all of their energy from gas)
Honda said that these gas-guzzling hybrids will “be introduced to market in 2027 onward,” which means they will continue driving on roads and polluting the Earth for decades, including after Honda’s 2050 carbon-neutrality target.
Honda’s previous plan for 30% by 2030 was already quite low compared to other global automakers, even after many of these companies have walked back their EV plans. Most of these other companies also cited the nonexistent slowdown in EV sales.
Honda said that its future hybrid models will “play a key role during the transition period toward the popularization of EVs.” In some of the world’s more profitable countries for auto sales, EVs are already at or nearing majority market share.
Electrek’s Take
It’s estimated that this year – not 2030 – 25% of cars sold globally will be EVs. So, any company that sells less than that is lagging behind the curve, losing ground to companies that are ready for the transition that is already happening. When you are behind, the way to catch up is to speed up, not to slow down.
This 25% EV sales projection shouldn’t be a surprise, because EV sales have been rising globally for many years now, and haven’t stopped doing so, as we keep having to point out. In fact, the opposite is happening.
Honda also mentioned changes in environmental regulations, stating that these regulations were “the premise for the widespread adoption of EVs.” In the same statement, it mentioned its “ambitious goal to ‘achieve carbon neutrality for all products and corporate activities’” – so I guess the mention of regulations as the actual premise means all that carbon neutrality stuff was just greenwashing, after all.
But as for regulations, currently, US regulations target ~50% market share for EVs by 2030, and California targets 68%. 30% is a far cry from either of these, so one would think that Honda should increase that number, not lower it.
Further, those regulations are likely not changing nearly enough to make up for Honda’s change in strategy here. Despite the protests of a former reality TV host and convicted felon (who is Constitutionally barred from holding office in the US, by the way), it is unlikely that already-filed regulations, which cover the period from 2027-2032, will be changed.
But the US isn’t the world – maybe Honda was talking about other major markets?
Well, Europe isn’t changing its regulations, either – the bloc recently said it will give automakers “breathing room”, allowing them to use the average of their emissions from 2025-2027 to comply with new emissions regulations, but this will still require a steeper ramp-up by the end of that period if automakers are not in compliance today. In other words, those regulations have not been softened on a 2030 timeline, only on a 2025 one.
And in China, well, new regulations went into effect a couple years ago, but they almost didn’t need to, because ICE cars are virtually unsellable there these days. EV adoption is rising incredibly rapidly in China, driven by local brands which Chinese customers trust more, and which have more nifty features than the models global automakers are offering there.
In fact, Honda’s profit is slipping precisely because of the rapid advancement of the Chinese auto market. AP reports that Honda’s Q1 profits slipped by 24.5%, driven largely by sliding sales in China in the face of local EV competition. How’s that for “slowing demand.”
Honda does sell one EV in the US market, the Prologue, which is selling like gangbusters. It’s the fifth-best-selling EV in the country, and was a large part of what drove US EV sales into growth in April. It’s also Honda’s fastest-growing model – though, to be fair, that does count from a very low baseline, as the model was only trickling out onto the market a year ago.
So, there seems to be no real justification for Honda’s change in strategy here. Unless they seem to enjoy that China is now beating Japan in terms of auto exports, and are excited to see Japan lose 14% of GDP and millions of jobs by stalling on EVs.
I guess if you want to go out of business and bring your country and the planet down with you, this is the way to do it.
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Even with strong demand up until the federal tax credit expired, Hyundai’s EV sales crashed last month. Hyundai, Ford, Kia, and Honda sold significantly fewer EVs in October.
Hyundai EV sales drop in October as the tax credit ends
Hyundai is still on pace for its third straight record sales year in the US. The South Korean automaker sold 70,118 vehicles in the US last month, 2% fewer than it did in October 2024.
Although Hyundai sold a record number of “electrified” vehicles, it was hybrids that carried the growth in October. Several hybrid models set new October sales records, including the Sonata HEV and Elentra HEV. The Palisade also had its best October with the new HEV version now rolling out.
“Hybrid vehicles led the way in October with a 41% increase, and electrified sales were up 8%,” said Hyundai Motor North America’s CEO, Randy Parker.
Fully electric vehicles, on the other hand, didn’t fare as well. Hyundai sold just 1,642 IONIQ 5s last month, down 63% from October 2024 and a stark contrast from the over 8,400 sold in September.
Sales of the IONIQ 6 fell 52% to 398, while Hyundai sold just 317 units of its three-row electric SUV, the IONIQ 9. Parker said that Hyundai saw “strong EV demand leading up to the expiration of the federal tax credits,” adding that the shift “has temporarily disrupted the market.”
Despite this, Hyundai’s momentum “remains strong,” and according to Parker, it’s still on pace for record retail and total sales in 2025. Parker said Hyundai is confident the EV market will reset following the policy changes.
Hyundai wasn’t the only brand with significantly lower EV sales following the expiration of the tax credits. Ford, Kia, and Honda all sold drastically fewer electric vehicles last month.
Although the tax credit expired, Hyundai is still offering big savings. After cutting prices on the 2026 IONIQ 5 by nearly $10,000 on some trims compared to the 2025 model, Hyundai’s electric SUV now starts at under $35,000.
Hyundai is also still offering the $7,500 credit for the 2025 IONIQ 5. So, why are EV sales collapsing? It’s likely due to the rush of buyers that flooded the market in the months leading up to the tax credit’s expiration.
Interested in trying out Hyundai’s electric vehicles for yourself? Tap the links below to find an IONIQ 5, IONIQ 6, or IONIQ 9 near you.
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![Leaked Hyundai EV interior reveals more than just a new screen [Images]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Hyundai-new-Pleos-OS.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The interior featured a new Tesla-like infotainment screen at the center. A closer look at the new Hyundai IONIQ 3 reveals much more than just a massive new screen.
Leaked images reveal new Hyundai IONIQ 3 EV interior
The IONIQ 3 is set to arrive as a smaller, more affordable sibling to the IONIQ 5 as Hyundai expands its EV lineup.
Despite its compact size at just 4,287 mm long, Hyundai said the IONIQ 3 will set the tone for its next chapter with a fresh look and advanced new tech.
It will be one of the first models to run on Hyundai’s new Pleos software and infotainment system. The next-gen infotainment system features a smartphone-like UI, similar to Tesla’s, with a large touchscreen at the center.
Hyundai’s new tech stack and software platform integrates everything under one roof, including the infotainment system and OS. The setup is not only easier to use but also unlocks new features such as autonomous driving and real-time data analysis.
We are finally getting a closer look at the new system after leaked photos surfaced online, revealing the IONIQ 3’s interior for the first time.
The images, courtesy of TheKoreanCarBlog (via SH Prohots), show the Tesla-like floating infotainment at the center of an otherwise minimalistic interior. Even the steering wheel resembles that of Tesla models.
Unlike Tesla, however, Hyundai still includes a driver display cluster and several physical buttons. Hyundai said the first vehicle with its new Pleos Connect infotainment system will arrive in Q2 2026, which is the same time the IONIQ 3 is expected to launch.
If you look at the vehicle displayed on the screen, it appears to be the updated Grandeur, Hyundai’s flagship sedan. Hyundai is expected to reveal the Grandeur facelift later this year or in early 2026.
Hyundai previewed the IONIQ 3 in September, unveiling the Concept THREE at the Munich Motor Show. The IONIQ 3 is Hyundai’s first compact model under its IONIQ EV series.
It features Hyundai’s new “Art of Steel” design, inspired by advanced steel technologies. According to Hyundai, the Aero Hatch profile is “a new typology that reimagines the compact EV silhouette.”
The concept featured a customizable, futuristic interior design with “hidden surprises” throughout, but it will look more like the images above when it arrives next year.
Hyundai will begin IONIQ 3 production at its manufacturing plant in Turkey in Q2 2026. It will sit between the Inster EV and Kona Electric in Hyundai’s European lineup.
At 4,287 mm long, 1,940 mm wide, and 1,428 mm tall, with a wheelbase of 2,722 mm, the Concept Three is about the size of the Volkswagen ID.3 and Kia EV3.
We will learn final specs and prices closer to launch, but the IONIQ 3 is expected to be available with 58.3 kWh and 81.4 kWh battery packs, like the Kia EV3. The former provides a WLTP range of 260 miles, while the latter is rated at 365 miles.
The Hyundai Kona Electric starts at £34,995 ($47,000) in the UK, so the IONIQ 3 is expected to be priced closer to £25,000 ($33,700).
How do you feel about the new interior design? Do you like the changes? Or should Hyundai stick with the dual 12.3″ screens on current EV models, like the IONIQ 5? Drop us a comment below and let us know your thoughts.
Source: TheKoreanCarBlog, SH Proshots
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Environment
Tesla (TSLA) reportedly secures massive $2.1 billion battery deal with Samsung SDI, but not for its cars
Tesla has reportedly secured another major battery supply partner, but it’s not for the product you might think.
According to a new report from the Korea Economic Daily, Tesla has reached a substantial agreement with Samsung SDI. The deal is said to be worth over 3 trillion won (approximately $2.1 billion) and will see the South Korean battery giant supply cells to Tesla over a three-year period.
But here’s the key part: This supply is reportedly for Tesla’s Energy Storage System (ESS) business.
That means these cells are destined for Megapack and possibly Powerwall products, not for Tesla’s electric vehicles.
The report, which cites an unnamed battery industry source, marks the first large-scale supply agreement between Samsung SDI and Tesla. For years, the two companies have been in talks, with most speculation centered on Samsung building 4680 cells, a cell format Tesla pioneered. While Samsung is indeed ramping up its own 46-series cell production, this new deal appears to be focused entirely on LFP cells for stationary energy storage.
When reached for comment, Samsung SDI officially stated that “nothing has been finalized yet,” which is a common response to such reports before a deal is formally announced. Tesla has not commented.
This new deal with Samsung SDI follows another massive ESS battery agreement Tesla signed with a different South Korean supplier, LG Energy Solution, for lithium-iron-phosphate (LFP) batteries. Currently, Tesla exclusively uses cells from CATL and BYD for its energy storage products, but the company recently noted a bed to diversify supply due to the tariffs put in place on Chinese products.
Tesla has also been working on deploying its own LFP battery cell manufacturing in the US to partially offset Chinese supply.
Electrek’s Take
The company’s energy storage division has been a silver lining amid two years of decline in its EV division.
The growth has been impressive despite increased competition.
It’s the only segment where Tesla is truly production constrained, and more specifically battery supply constrained rather than demand constrained.
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