Yomiuri: Honda Motor Aims to Turn Things Around with 'products That Offer New Value,' President Says

Honda Motor Co. President Toshihiro Mibe said halting electronic vehicle (EV) development was "unavoidable" and emphasized the company's commitment to focusing, for now, on hybrid vehicles (HVs) that offer improved performance at a lower cost, in an exclusive interview with The Yomiuri Shimbun. He also said the company plans to turn things around with "products that offer new value."

The following is excerpted from the interview.

The Yomiuri Shimbun: You decided to halt the development of electric vehicles. What were the circumstances behind the decision?

Toshihiro Mibe: The administration of former U.S. President Joe Biden proposed extremely strict emissions regulations, and there was a risk that Honda would have to withdraw from the North American market if we couldn't comply. By 2024, EV development was complete, and we were preparing for production.

However, in September 2025 (after President Donald Trump took office), subsidies for EV purchases were abolished. We concluded that the era of EVs wouldn't arrive in the United States for another five years. If we had forced ourselves to continue sales, we would have accumulated losses. Given the circumstances at the time, (halting development) was unavoidable.

As a company, we have a responsibility to address global warming. We are continuing research and development on next-generation EVs (separate from the 0 Series, whose development was halted).

Yomiuri: You have indicated a policy of focusing on hybrids for the time being. Is there any change to the plan?

Mibe: Our policy that HVs will remain the pillar of our automotive business through 2030 has not changed. We will release HVs that offer improved performance while reducing costs.

Yomiuri: Will you continue to strengthen your presence in the North American market?

Mibe: Our automotive business is struggling in China and Asia. The United States is one of the regions where we aim to grow. The Civic and Accord hybrids are performing well, and we want to significantly increase sales volume going forward.

Yomiuri: Why did you designate Japan as a priority market on par with North America?

Mibe: As people say we're a company that makes kei cars and small minivans, this is a statement of our intention to change that perception. Rather than launching luxury cars, we aim to turn things around with products that offer new value.

Autonomous driving technology will reduce accidents caused by mistakenly stepping on the accelerator or wrong-way driving, and be a solution for an aging society. Starting from the (SUV) Vezel, we'll begin equipping our cars with autonomous driving technology.

Yomiuri: How are you responding to Chinese manufacturers?

Mibe: The future of the automotive industry will revolve around Chinese manufacturers. Their cost competitiveness has become the industry standard. Since avoiding competition with China is tantamount to defeat, cutting ties (such as joint ventures) with China is not a wise strategy. We will leverage China's strengths on a global scale.

Yomiuri: Is collaborating with Nissan Motor Co. and Mitsubishi Motors Corp. necessary?

Mibe: It's an effective strategy for competing (against Chinese manufacturers). Because of the economies of scale, we'll have overwhelming competitive advantage compared to developing independently.

Yomiuri: What businesses outside of automobiles are you strengthening?

Mibe: We conducted the maiden flight of the (flying car) "eVTOL" (electric vertical take-off and landing aircraft) in the United States. If we don't do this now, we won't be able to realize a future where Honda's logo is displayed on aircraft. We've also been developing robots ever since (the humanoid) Asimo. We intend to make robotic hands, which are crucial for physical AI, a core business pillar.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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By Kentaro Otsuka and Rina Ukita / Yomiuri Shimbun Staff Writers