The Japanese carmaker plans to reduce its investment in electric vehicles by more than $20 billion in the coming years as EV demand growth slows.

Honda cuts electrification investment from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion). The focus shifts to hybrids, with 13 new models and a target of 2.2 million sales by 2030. It’s also working on advanced ADAS to enhance the competitiveness of both EVs and HEVs.

Japan’s auto biggie Honda HMC is pulling back on its electric vehicle (EV) plans as global demand cools. Instead, the company is betting big on hybrid cars, aiming to launch 13 new hybrid models globally between 2027 and 2030,