Japanese automaker Honda reported a 9pc increase in electric vehicle (EV) sales, including hybrids, plug-in hybrids, and battery electric vehicles, in its fiscal year ending March, with EVs accounting for 27pc of its total vehicle sales.
Honda sold 992,000 EVs in fiscal year 2025, the majority of which — 898,000 units — were hybrid electric vehicles (HEVs).
Honda reduced the cost of HEVs and enhanced their market appeal, with the current model being 1.5 times more profitable than the previous one, chief executive Toshihiro Mibe said this week on the company's first-quarter earnings presentation.
Global unit sales have increased, particularly in North America, the company said. Honda plans to introduce the next generation of HEV models to further improve performance and cost efficiency.
Still, the company acknowledged that the EV market has "slowed down more than expected" and is currently reviewing its electrification strategy, with further details to be announced on 20 May.
Honda also decided to stop its C$15bn ($10.7bn) plan to build an EV value chain in Ontario, Canada.
The automaker expects slower EV adoption in the US market over the next five years and has lowered its total vehicle sales forecast for FY2026 by 3pc to 3.62mn units.
