The future is hybrid: Honda to launch 13 new hybrid cars by 2027 to battle Toyota as it backtracks on electric car plans after failed Nissan merger

Honda has become the latest global automaker to revise its electrification plans by announcing it will reduce its investments in electric vehicles (EVs) and instead prioritise advancements in its hybrid technology.

Japan’s second-largest carmaker said it doesn’t expect to meet its aim of having EVs account for 30 per cent of its global sales by 2030, citing uncertainty in the global car market. The brand will subsequently reduce its investment in the powertrain technology by 30 per cent to seven trillion yen (A$75 billion) by fiscal year 2031.

It does see significant growth in hybrid vehicles, with the brand targeting a 2.2 million hybrid sales by 2030, which would equate to roughly 61 per cent of the 3.6 million sales it recorded last year.

Hybrids accounted for about 23 per cent of Honda’s global sales last year.

To meet this ambitious target, Honda will bring 13 new hybrid models to the market from 2027 over a four-year period, with the US, the brand’s largest market by far, flagged as its major battleground.

These new models are expected to run on Honda’s current two-motor hybrid or e:HEV system, which it said will advance through a newly-developed electric AWD drive unit and weight reductions to realise the “world’s most efficient powertrain”.

Honda claimed fuel economy will subsequently improve on its e:HEV models by “more than” 10 per cent over where they stand currently, suggesting a Honda Civic e:HEV LS, the brand’s most fuel-efficient model in its Australian line-up, will see its fuel consumption fall below 4.0-litres/100km.

Honda said it will pursue advances in its hybrid powertrain without major additional financial investments in the technology, instead favouring cost reductions by pursuing production efficiency and the “commonisation” of more key parts and components with suppliers.

Despite the reduced investment in EVs, the 0 Series electric saloon and SUV models, which were teased in concept guise earlier this year, will remain a major part of the brand’s electrification strategy and remain on track for release next year.

They, along with Honda’s future hybrid models, will feature the brand’s next-generation Advanced Driver Assistance Systems (ADAS), which are poised to incorporate Level 3 autonomous-driving capabilities.

Honda’s decision to revise its electrification plans comes following the collapse of a proposed merger with Nissan this February, which would have created the world’s second largest car brand, behind Japanese rival Toyota.

Talks broke down after it was reported that Nissan did not want to be a Honda subsidiary.

Nissan, which sold half a million fewer cars than Honda last year, reported a $7 billion net loss in the 12 months to March 2025, leading it to announce 20,000 job cuts and seven factory closures. Nissan has now similarly shifted its focus to more hybrid vehicles.

Honda currently sells five hybrid models in Australia: Accord, Civic, CR-V, ZR-V and HR-V.

The brand has sold 5331 cars as of April this year in Australia, 9.2 per cent fewer than the same period last year, in what is a small fraction of its global sales.