Honda Motor Co (TYO:7267) is lowering its electric vehicle investment plan by 3 trillion yen to 7 trillion yen through fiscal 2031, citing slower EV demand in the US, according to a company statement on Tuesday.

The automaker also scrapped its goal for EVs to make up 30% of global sales by 2030.

The company's Global CEO Toshihiro Mibe said the strategy shift reflects rising uncertainty and a slower-than-expected market expansion due to regulatory and market challenges.

"The environment surrounding the automobile industry is changing day by day, Honda said in a statement. "Uncertainty in the business environment is increasing, due particularly to the slowdown in the expansion of the EV market due to several factors, including changes in environmental regulations."

Mibe, however, emphasized that Honda's long-term commitment to electrification remains unchanged.

He also pointed to the company's motorcycle business as a key growth driver, particularly in India, where sales continue to grow.

Mibe reiterated Honda's goal to achieve carbon neutrality and eliminate traffic fatalities through the expanded use of electric vehicles.