Honda has teamed up with GS Yuasa Corp to jointly develop and manufacture electric vehicle batteries. This partnership is a significant step towards making Honda one of the major players in the electrification vehicle segment. The two companies have disbursed a whopping 400 billion yen, or approximately IDR 43.3 trillion, to build a new factory in Japan. The plant aims to produce at least 20 gigawatt hours (GWh) of batteries.
Joint Venture for Investment Development
The companies announced a joint venture in January 2023, which will take the lead in developing and managing investments. This move is expected to encourage not only Honda but also other Japanese automakers to build more electric vehicles in the future. Moreover, the Japanese Ministry of Economy, Trade and Industry has expressed its readiness to provide a subsidy of 150 billion yen or IDR 16.1 trillion for factory construction. However, the details of the subsidy have not been explained.
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Honda Catching up with Chinese Car Manufacturers
Honda has acknowledged that it is lagging behind Chinese car manufacturers in developing electric vehicles. Consequently, it plans to implement various strategies to catch up. CEO Toshihiro Mibe has said, “They were ahead, more than expected. Ways to fight back are being considered because if we don’t then we will lose this competition.”
New Models, Battery Life Improvement, and Software Technology
Honda’s CEO also emphasized the company’s ambition to launch various new models, improve battery life, develop software technology to redesign vehicle cabins, and build a special production facility for electric cars. He made this assertion after seeing the 2023 Shanghai Auto Show, which was filled with local brands showcasing a variety of sophisticated EVs. This development was a hard blow for Honda and other Japanese manufacturers.
Honda’s Future Plans
Even though Honda has set an ambitious target to stop internal combustion production by 2040, it plans to focus on marketing electric vehicles and hydrogen cars, which are known to be environmentally friendly. Additionally, Honda aims to increase its production capacity, allowing the company to sell at least 2 million units of electric vehicles and fuel cells globally by 2030. Meanwhile, the profits from petrol and hybrid-engined cars are being used for future technology development.