Honda cancels electric car plans to focus on hybrids from 2027 to potentially join the 2027 Honda CR-V and ZR-V in Australia

Honda has made a transformative global u-turn ditching its electric-car strategy to gamble on hybrids and it could have huge implications in Australia. 

The brand said it will reallocate resources towards a new hybrid strategy beginning in 2027. It will see 15 new hybrid models launched globally by 2030, with the North American market a priority. 

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This hybrid push could be timely for Honda Down Under as the brand grapples with New Vehicle Efficiency Standard (NVES) fines. 

The brand has already introduced several new hybrid models to combat NVES, including beefed up and more affordable hybrid lineups for the CR-V and ZR-V SUVs. 

EVs are still an area of interest for Honda, with the Super One city car launching soon.

Honda will abandon the majority of ‘0 series’ EV plans globally, which were expected to get underway this year as part of its hybrid switch-up. 

While plans for the 0 Series mid-size SUV and Saloon EV concepts have been torn up, the local branch has not dismissed the remaining Alpha small SUV scheduled for launch next year.

Honda has unveiled two concept models that will form the basis for its revamped hybrid strategy. A sedan and Acura SUV prototype. These cars will sit on an all-new platform and feature an electric all-wheel drive set-up. 

The brand hopes these models will cost 30 per cent less than the current generation of Honda hybrids. It is also aiming to improve fuel economy by more than 10 per cent.

This substantial shift for Honda will require the Japanese giant to reconfigure its existing infrastructure to develop parts for the new hybrid vehicles. Its joint venture partnership with leading electronics manufacturer LG will now shift focus from EV battery production to hybrid battery production. 

Honda also said it will lean further into cost competitiveness opportunities from Chinese manufacturing - something many brands have embraced in an increasingly competitive market.