Honda aims for U.S. growth with new hybrid platform

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Honda Motor Co. 7267.T announced on Thursday that it is developing a platform centered on medium-sized hybrid vehicles and a hybrid system for large vehicles, aiming to strengthen its competitiveness amid delays in the transition to fully electric vehicles.

The new platform, which will be introduced in vehicles from 2027 onwards, will be designed for hybrid use, but will also be compatible with gasoline-only models. Honda says the platform will be about 90 kg (200 lb) lighter than the current design.

Japan’s second-largest automaker behind Toyota 7203.T is stepping up efforts to grow in the United States as it faces stiff competition in China and other markets, while also dealing with import tariffs and price pressure in North America.

The company aims to use the platform to share more than 60% of parts between models and adopt a modular architecture to reduce costs and speed development. This change is said to improve driving stability and handling.

Honda places the battery on the platform near the center of the vehicle rather than the rear, uses fewer proprietary parts, and adjusts load capacity for different vehicle weights.

The company also announced a prototype of a large hybrid system it is considering for use in D-segment and above models by 2030, potentially targeting the North American market, where demand for large vehicles remains strong. D segment models are medium to large size vehicles.

Honda said it aims to improve fuel efficiency by more than 30% compared to similar gasoline models while improving acceleration and towing capacity for boats and trailers.

This announcement comes after Honda announced in May that it plans to launch 13 next-generation hybrid models around the world over a four-year period starting in 2027.

The company aims to increase sales of hybrid vehicles from 868,000 last year to 2.2 million to 2.3 million by 2030, with total sales of 3.8 million in 2024.

Honda’s efforts highlight how automakers are relying on hybrid vehicles at a time when demand for electric vehicles is growing more slowly than expected. Rivals Toyota Motor Corp. and Hyundai Motor Co. 005380.KS already sell three-row hybrid sport-utility vehicles in the United States.

Report by Daniel Rusink. Editing: Tomasz Janowski

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