As more automakers revise their EV plans in response to the realities of the market, Honda is also adjusting its electrification strategy. President and CEO Toshihiro Mibe recently announced significant changes to the company’s approach, including a sharp reduction in both its ambitious sales targets and, more importantly, its investment in electric vehicles.

More: Honda’s Future EVs Will Let You Pretend You’re Driving An NSX Or S2000 With Simulated Sounds And Shifts

Slower-than-expected EV adoption has been a key factor behind this shift. While Honda still sees electric vehicles as the best long-term path to carbon neutrality by 2050, the pace of adoption has not kept up with predictions. A combination of evolving environmental regulations and shifting trade policies has kept EVs from breaking through at the rate many hoped for.

Adjusted Expectations

Honda now predicts that EVs will make up less than 30% of its global sales by 2030. In response, the company is slashing its planned investment in electrification from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion) by 2031. Part of this reduction stems from the postponement of a major EV investment project in Canada.

More importantly, Honda is introducing a new mixed production system that can handle both EVs and HEVs, with the added flexibility to shift between different factories. This will be paired with a “resilient supply chain strategy” designed to make adjustments as needed, depending on market fluctuations in different regions.

Next-Generation Hybrids

With demand for hybrids expected to continue growing toward the end of the decade, Honda plans to introduce 13 next-generation HEV models globally between 2027 and 2031. These hybrids will sport the redesigned “H” emblem, which was previously reserved for EVs. The company aims to reach 2.2 million annual HEV sales by 2030, contributing to a broader sales increase beyond the projected 3.6 million units in 2025.

More: 2026 Honda Prelude Coupe Interior Revealed With Civic Vibes

Honda’s two-motor e:HEV hybrid system will also see improvements, offering enhanced efficiency and better packaging. A new all-wheel-drive (AWD) unit will further elevate performance. The next-generation hybrid system will be 30% cheaper to produce than the current version, making it a more cost-effective option for the company.

Big Plans for North America

Specifically for North America, Honda is developing a new hybrid system tailored for larger vehicles, with an emphasis on high performance and towing capabilities. This powertrain will debut in models set to launch in the next few years, including a large SUV. While the model isn’t named, we suspect that it could very well be a replacement for the Pilot.

Sophisticated ADAS

The company is also investing heavily in intelligent technologies like advanced driver-assistance systems (ADAS). Aiming to enhance the competitiveness of both EVs and HEVs, the next generation of Honda’s ADAS will offer a higher level of autonomy in both city and highway driving. These systems are expected to be launched around 2027 across a wide range of EVs and HEVs in North America and Japan.

Besides its own-developed next-gen ADAS, Honda will also work with Chinese startup Momenta Global Limited to develop systems tailored for all future Hondas that will launch in China.

Honda

Update: It looks like carbon fiber has dodged a regulatory bullet – for now. A representative from the European Parliament told Motor1 Italia that it plans to drop the lightweight material from the draft proposal, with the report stating, “Carbon fiber will be removed from the list of harmful materials, and cars sold in Europe will therefore be able to continue using it even after 2029.” Original story follows below.

Materials like lead, mercury, cadmium, and hexavalent chromium have long been classified as hazardous by the European Union. Despite that, they’re still allowed in the automotive sector under exemptions that don’t apply to other consumer goods. Now, though, another material could face outright prohibition in European cars: carbon fiber.

According to a new report, the European Parliament, which is responsible for the union’s laws, recently concluded a draft revision of the End of Life Vehicles (ELV) Directive that regulates dismantling and recycling vehicles and is aiming to make them more environmentally friendly. In it, carbon fiber is, for the first time anywhere in the world, classified as a harmful material.

More: EU Could Ditch Tariffs On Chinese EVs For Minimum Prices

Carbon fiber is used extensively in the aircraft industry as well as many other applications, such as wind turbine blades, cars and, to a lesser degree, motorcycles due to it being stronger than steel and lighter than aluminum. While it’s pricier than both, as its construction is far more difficult and costly, in many instances its advantages outweigh that con.

Is A Huge Market Worth Billions About To Be Decimated?

The world market for carbon fiber, which was worth $5.48 billion in 2024, is expected to grow annually at an average rate of 11% to $17.08 billion by 2035, US research firm Roots Analysis estimates. Currently, cars account for 10% to 20% of all applications according to Nikkei Asia‘s report. That number is bound to increase exponentially as manufacturers strive to lower the weight of their electric vehicles.

The extra weight of EVs compared to ICE-powered vehicles is due to them having to haul a big battery pack, usually on the floor. Using carbon fiber is seen as an ideal solution, especially by premium manufacturers for whom price is far from the first priority, unlike handling and range, which are compromised by all that weight and definitely matter much more to them.

Caution: Carbon Can Be Harmful When Getting Disposed Of

So why does the EU consider the material to be hazardous? The reason that when carbon fiber, which is bound with resin, is discarded, filaments may become airborne, causing short circuits in machinery and, more importantly, pain in humans if they contact the skin and mucosal membranes.

More: 2025 Kicks Off With A 30% Surge In Global EV And PHEV Sales

As Nikkei Asia points out, the ones who stand to lose the most if this ban goes through are three Japanese companies, Toray Industries, Teijin and Mitsubishi Chemical, who combined hold 54% of the world’s carbon fiber market. For Toray Industries, after aircraft and wind power generation, cars are the third largest segment of its business. Moreover, 50% of that is in Europe, so it would be greatly affected if this proposal gets voted into law.

Apart from EVs, many brands use carbon fiber in their ICE or hybrid cars – McLaren even makes the whole chassis of its supercars out of it. The good news is that even if this ban is adopted in Europe (and that’s a big “if”, as it’s bound to be met with lots of resistance), it won’t come into effect until 2029.

Are We Getting Ahead Of Ourselves?

Four years may not be such a long time for manufacturers who must develop their upcoming cars to comply with regulations, but take a look at how our world has changed in less than four months, when Donald Trump took office as the 47th US President.

A single decision, the 25 percent tariff on imported cars which was implemented on April 2, sent economies all over the globe into a spin. Yet nothing’s set in stone yet, as many countries intend to negotiate with the Trump administration over this measure that harms their business. So, perhaps we shouldn’t worry too much about a possible ban on carbon fiber in Europe just yet – unless, of course, we were execs in one of the aforementioned Japanese companies. Or McLaren.

We bet you’ve never heard of Hon Hai Precision Industry Co. Chances are, though, that you’ve either heard or read about Foxconn, the Taiwanese tech giant that builds iPhones for Apple – and the former is its official name.

Another thing you’re probably aware of, if you’ve been paying any attention to car-related news, is that tech companies are not content with making smartphones and laptops anymore and are actively engaging in the automotive business now that EVs have taken off. Which, in a way, makes perfect sense as traditional automakers are trying to outdo each other by offering lots of advanced tech in their new vehicles.

Foxconn Ready To Build A Range Of EVs

Since customers are more interested in things like advanced infotainment systems and electrification sort of levels the playing field between newcomers and established players in the car game, the likes of Xiaomi, Huawei, and even Sony decided to take advantage of that.

Foxconn recently made headlines as one of the parties interested in Nissan, which is in serious trouble. The Japanese company though would rather get in bed with fellow manufacturer Honda, but the proposed merger eventually fell through.

Enter Jun Seki, a Foxconn top executive who also happens to be Nissan’s former COO after then CEO Carlos Ghosn was ousted from the company and prosecuted by Japanese authorities. Seki said that Foxconn already has what it takes to build a range of EVs. They will initially be manufactured in Taiwan and shipped around the world, but the company can also produce them locally to cater to each market’s demands.

US-Market EVs Will Be Built Locally

“It is right to make them in the market where they are sold”, Seki said according to Autonews. “But it is inefficient without a certain number of units, so we are making them in Taiwan now as a transitional measure.”

This is a wise strategy, especially when it comes to the US, which is the world’s second biggest market after China. With Trump’s new tariffs shaking up the industry and making imported cars pricier than ever, forcing a number of established brands to suspend their shipments as they scramble to formulate a new strategy, a newcomer with no customer base has no choice but to manufacture its vehicles locally if it wants to be competitive.

Foxconn already builds the Model C midsize crossover that’s sold its home market since December 2023 as the Luxgen N7. Its global expansion, though, will start with the Model B minivan that’ll be launched in Taiwan in the second half of the year and will be sold in Australia with the badges of a Japanese brand that’s believed to be Mitsubishi. However, in the fourth quarter it plans to import the Model C in the US for customers to try out, and in 2027 it will introduce the stylish Model D minivan.

Teaming Up With The Japanese Would Be Ideal

After the negotiations between Honda and Nissan ended, Foxconn reportedly proposed an alliance between itself, Honda, Nissan and Mitsubishi, touting its expertise in cutting-edge technology as a key advantage for the automakers’ future models.

Seki admitted that Foxconn is working with Mitsubishi, but wouldn’t elaborate on the matter. He did, however, state that Japanese brands make for great partners due to their focus on quality. “Japanese carmakers are careful planners, and we understand that but are also very fast,” Seki said. “We can do things faster while understanding Japanese prudence.”

Moreover, Seki made it clear that Foxconn won’t launch the EVs it will build under its own name. Rather, following the example of its electronics division, it will manufacture them for other brands, just like the iPhone, thus it won’t be seen as a competitor but a valuable partner.

Toyota helped kick off the electrified era long before it was cool, way back in the late ‘90s with the launch of the Prius. That car didn’t just spark curiosity, it redefined what people expected from hybrids and made Toyota a poster child for practical electrification.

Read: Toyota’s Cheapest EV Ever Costs $15,000, Gets 10,000 Orders In 60 Minutes

But in recent years, as other automakers raced ahead with battery-electric vehicles (BEVs), Toyota found itself lagging behind, seemingly reluctant to join the full-EV sprint. Now, it’s shifting gears and planning a major EV expansion as it works to close the gap with its faster-moving rivals.

EV Production Plans Are Going Global

By 2027, Toyota reportedly wants to have as many as 15 electric models on sale, including those under the Lexus badge. It also aims to ramp up EV production to about 1 million units per year by that point. For context, that would be roughly seven times the number of EVs it built in 2024, a massive jump, if it can pull it off.

Toyota currently only builds EVs in Japan and China, but Nikkei Asia reports that as more of the upcoming EVs launch in the market, production will expand to the US, Thailand, and Argentina. One of the first to hit the market will be an electric version of the Hilux, set to be built in Thailand from October. This model will also be assembled in Argentina.

Toyota Is Facing Increased Competition

Toyota’s urgency makes sense, as it’s facing steep competition from automakers that have already hit their EV stride. Tesla and BYD each moved 1.76 million EVs last year. Volkswagen wasn’t far behind, selling 740,000 EVs globally. Compared to those numbers, Toyota’s electric efforts have been pretty modest so far.

A key piece of Toyota’s upcoming EV puzzle is the new C-HR+ EV, which was revealed about a month ago. This model sits below the larger bZ4X in the Toyota family and will be offered with 57.7 kWh and 77 kWh battery packs. Production of it will start at Toyota’s Takaoka plant in Japan this September, and in addition to being sold throughout Europe, it will be available in the USA and Canada from next year.

More: Toyota And Lexus Unveil 15 New Electric Concepts All At Once

Elsewhere, Toyota is planning to build a three-row EV at its Kentucky and Indiana plants from next year, serving as a rival to the Kia EV9 and Hyundai Ioniq 9. Toyota is also continuing its EV partnership with Subaru, and the next result of that collaboration is scheduled to go into production in Japan in February.

Toyota is hitting the brakes—slightly—on one of its major EV infrastructure projects in Japan. While the company still plans to move forward with a new battery plant, construction won’t begin as soon as originally expected. The pause comes as Toyota adjusts its EV strategy.

The plant is slated for Japan’s Fukuoka prefecture, and according to local Governor Seitaro Hattori, an agreement on the exact location was supposed to be finalized in April. That timeline has now slipped to sometime in the fall. The facility had been scheduled to start operations in 2028, but the delay could push that date back as well.

Read: Toyota’s Cheapest EV Ever Costs $15,000, Gets 10,000 Orders In 60 Minutes

Toyota is still committed to building the facility, Nikkei Asia reports, but the company is now reevaluating what will actually be produced there. Initially, the plant was intended to manufacture batteries for Toyota’s next generation of electric vehicles, some of which are targeting a range of up to 620 miles (1,000 kilometers).

The shift reflects a broader recalibration of Toyota’s EV ambitions. While global electric car sales are still climbing, they’re not accelerating as fast as some carmakers once projected. That mismatch between forecasts and reality is now prompting the company to rethink its targets.

Back in 2022, Toyota announced it aimed to sell 1.5 million EVs annually by 2026. That number was cut to 1 million in 2023, and most recently trimmed again to just 800,000 units. The company hasn’t abandoned EVs by any stretch, it’s simply adjusting expectations in a market that’s proving to be more complex and less predictable than initially suggested.

Earlier this month, Toyota established a new Chinese subsidiary for Lexus that will develop and build EVs and batteries at a plant in China. The plant will be located in Shanghai and will manufacture several models exclusively for the Chinese market.  

Mazda’s future lineup is shaping up to be exciting, with a new generation of the popular CX-5 and a hybrid rotary-powered sports car in the works. But don’t get too attached to some of its current models, as several are being sent off to the great scrapyard of automotive history, with production scheduled to end before 2025 wraps up.

More: Mazda Slashes $3.3B From EV Plans, Confirms Hybrid SkyActiv-Z Engine For New CX-5

The cars on the chopping block include the Mazda2 supermini, the closely related CX-3 subcompact SUV, the Mazda6 sedan, and the fully electric MX-30 crossover.

The MX-30: A Quick Disappearance

First up is the MX-30, Mazda’s first-ever production electric vehicle, as reported by Creative Trend. It’s not exactly going out with a bang. Set to end production in March 2025, the battery-electric MX-30 never quite found its footing in the market. With a steep price tag and a range that barely made it past the corner store, it struggled to attract attention. And despite being relatively new—just five years old—the car won’t even get a mid-cycle update, let alone a second generation.

However, the rotary range-extender version of the MX-30, the e-SkyActiv R-EV, will live on for the time being, so don’t worry, rotary fans, there’s still a sliver of hope for you. But Mazda’s first attempt at an electric vehicle might be best remembered as an experiment that went a little too far off the rails.

Mazda2: The End of an Era (Maybe)

Next up is the aging Mazda2, which is reportedly nearing its end. The current generation of this small hatchback debuted in 2014 and received facelifts in 2019 and 2023. Its most recent update came in 2024, when it got a new infotainment system for the Japanese market. However, those updates don’t seem to be enough to keep it going, as Mazda is reportedly planning to phase it out before the end of 2025.

More: Mazda Kills 2 Supermini After 11 Years In The UK

Sadly, there’s no word on a direct successor to Mazda’s most affordable model in Japan. The only clue is a trademark filing for the Mazda2e name, which might be used for a future entry-level electric vehicle.

It’s possible that Mazda will step away from the supermini segment for a few years, pushing buyers toward the upcoming small crossover (more on that later). However, European customers can still grab the Mazda2 Hybrid, which is essentially a rebadged version of the Toyota Yaris.

The CX-3: The SUV That Could Have Been

The Mazda CX-3, the subcompact SUV that’s been soldiering on mostly unchanged since 2014, will also meet its end in September 2025. Despite a facelift in 2018 and a handful of other tweaks over the years, the CX-3 has struggled to maintain relevance in an evolving market. It’s already been discontinued in North America and Europe, but it remains available in Japan and select Asian markets.

Luckily for Mazda fans, a successor of the CX-3 appears to be under development. The model has appeared in official teaser sketches earlier this year, revealing a compact footprint and fresh styling with a CX-5-inspired nose and a coupe-SUV stance. We also know that the new generation of the small SUV will be manufactured in Thailand, although it is not clear when it will debut and whether it will be available in Europe or Japan.

Mazda6: The Sedan That Was Just a Little Too Late

Lastly, we have the Mazda6 sedan, a long-time staple in Mazda’s lineup that is also ready to exit stage left. The current generation, introduced in 2012, has seen a couple of facelifts over the years but never managed to gain the traction it needed to keep up with shifting market trends. The Mazda6 said its goodbyes to North America in 2021, bid farewell to the UK in 2023, and was axed from Japan in 2024. Now, it’s also been dropped from the Australian market for failing to meet certain regulations.

More: Mazda6 Axed From Australia, One Of The Few Places It Was Still Available

But don’t mourn the Mazda6 just yet. While Mazda has shelved plans for a new internal combustion engine sedan, the fully electric 6e will serve as an indirect successor of the 6 in Europe and the UK. This Changan-based model is already available in China as the Mazda EZ-6, offering both range-extender and full EV powertrains.

Just days after reports emerged that Taiwanese contract manufacturer Foxconn was close to finalizing deals with two Japanese automakers, unnamed sources report that Mitsubishi is one of the firms involved. If the deal goes through, it could mark a major shift, with Mitsubishi potentially outsourcing EVs production to Foxconn.

For several years, Foxconn has been trying to lower its dependence on consumer electronics and expand into the EV market, viewing it as an important growth driver. It wanted to take a 5% share of the global EV market by 2025 and has previously signed deals with Lordstown, Fisker, and China’s Byton. While it’s yet to achieve the growth it had hoped for, a deal with Mitsubishi could be a major breakthrough for the firm.

Read: Foxconn Gearing Up To Build Four New EVs, Including Two From Japanese Brands

According to Nikkei Asia, Foxconn has been in talks with Mitsubishi for over six months. The company views this partnership as an opportunity to prove its manufacturing capabilities, hoping it will help attract other established carmakers.

Details about which Mitsubishi EVs Foxconn might produce are still unclear. The Japanese automaker is expected to launch a new EV in the US next year, with little confirmed about the model. However, early reports suggest it could be a crossover coupe, which would add another option to the growing EV market.

Foxconn’s Broader EV Plan

Foxconn had expressed an interest in acquiring Nissan late last year, but Nissan would ultimately go on to have discussions with Honda about a potential merger. However, talks fell through in early February. The Taiwanese company is still said to be open to taking a stake in Nissan and will likely try to secure a deal to build the brand’s future EVs.

At this point, Foxconn has plenty on its plate as it looks to play an increasingly important role in the EV market. In addition to working with established brands, it will begin production of its in-house Model B, an all-electric hatchback similar in size to the VW ID.3. It also wants to start building the larger Model C in North America during the fourth quarter of this year.

Taiwanese contract manufacturer Foxconn has revealed it’s close to inking deals with two Japanese car manufacturers to design and manufacture a pair of EVs. While limited details about these new models are known, they will be brought to life alongside two of Foxconn’s in-house EVs, namely the Model C and Model B.

Foxconn has been ratcheting up its involvement in the car industry for several years now. At one point, it announced it would invest up to $170 million to build Lordstown Motors’ Endurance pickup truck, but that project was later scrapped. It is also said to have expressed keen interest in acquiring Nissan, before the Japanese brand would go on to enter ill-fated negotiations with Honda about a potential merger.

Read: Foxconn Unveils Model C, Model E And Model T EVs With Up To 740 HP

While speaking at an investor conference earlier this month, chairman Young Liu said the company expects to sign agreements with two Japanese firms in the next two months. Foxconn will use its “contract design and manufacturing services (CDMS) business model” in the development of these new EVs.

There’s no word on which two marques Foxconn is talking to. It’s certainly possible that one of them could be Nissan, as a report from early February indicated that after the latter’s merger with Honda fell through, it has expressed its willingness to work with technology companies. Foxconn could be one of them, and teaming up with it would also provide Nissan with a valuable cash infusion.

Foxconn Model C

Foxconn’s Own EVs

While the Taiwanese giant is busy finalizing contract manufacturing deals, at the same time it’s also pushing forward with its own EVs. Focus Taiwan reports that the Model C will enter production in North America during the fourth quarter of this year. The electric crossover was previewed as a concept back in October 2021 and, in concept guise, had a claimed range of 435 miles (700 km). Given it’s been almost three and a have years since the concept’s unveiling, the production model may sport some changes.

Arriving before the Model C will be Foxconn’s Model B, reportedly set to reach the production line in the middle of this year. The Model B was previewed in 2022 and is similar in size to the VW ID.3. It was designed by Pininfarina, is powered by a single electric motor with 230 hp, and has a claimed range of 280 miles (450 km).

Foxconn Model B

The Toyota bZ4x has just received a mid-cycle update, and it looks like its Subaru twin, the Solterra, may soon follow suit. But these two crossovers won’t be the only EVs born from the Toyota-Subaru partnership. In 2026, the automakers are reportedly planning to expand their lineup with a pair of new compact SUVs.

More: Toyota’s New C-HR+ EV May Launch In The US Next Year

In an effort to keep research and development costs manageable, these new compact SUVs are expected to share key components with the e-TNGA platform already used by the bZ4x and Solterra. This includes components like battery packs and electric motors. This collaboration allows both Toyota and Subaru to cut costs and allocate more resources to other projects.

New EV Models Teased by Toyota

Earlier this week, Toyota teased three new EVs that will launch by 2026. These will join the ranks of the bZ4x, C-HR+, and Urban Cruiser in Toyota’s lineup. Two of the teased vehicles seem to be production versions of the EPU pickup and the Land Cruiser SE, both of which were shown as concepts in 2023. This has led to speculation that the third teaser might be the compact SUV that Toyota and Subaru are working on together.

If this is indeed the case, the new EVs are expected to adopt a more traditional SUV shape compared to the bZ4x and Solterra crossovers. The design hints at a profile similar to the upcoming Toyota RAV4, with a sharp nose, roof rails, and a more upright rear end. While the Toyota and Subaru versions will likely share much of their exterior and interior design, each will probably feature a distinctive front end to help buyers tell them apart.

Expanding the EV Market in Key Regions

According to Best Car, these new compact SUVs will be available in Japan, Europe, and the U.S., broadening both Toyota and Subaru’s zero-emission offerings in the compact SUV segment. Unlike the bZ4x and Solterra, which are currently produced at Toyota’s Motomachi Plant, the new jointly-developed models will reportedly be built at Subaru’s Yajima plant in Japan, with production set to start in January 2026.

While Toyota already offers three EVs (bZ4x, CH-R+, and Urban Cruiser) in Europe, the Solterra remains the sole zero-emission offering in Subaru’s global lineup. That will soon change, with this new SUV being one of four electric models Subaru plans to launch in collaboration with Toyota.

Subaru’s Own EV Ambitions

In addition to the jointly-developed vehicles, Subaru has its sights set on launching its first in-house-developed electric vehicle by 2028. These launches are part of a broader effort to have battery-electric vehicles account for half of Subaru’s global sales by 2030, a goal that will likely require a mix of joint and solo ventures, with both Toyota and Subaru continuing to expand their electric offerings over the next several years.