Honda aims to sell 2.2 million hybrids a year by the end of the decade and is reducing EV investment amid slowing consumer demand.

The automaker cited several factors for its decision, including slower than expected EV adoption, trade policies and relaxed environmental regulations in the U.S.

13 hybrid models to be globally introduced over four years starting from 2027: Honda Motor CEO (Global) Toshihiro Mibe.

The company is walking back some of its long-term electrification plans, cutting 3 trillion yen (about $20.8 billion) from its investment in electric cars over the next six years. Instead, it’s shifting focus to hybrids,

Honda's forecast is the latest signal of the difficulty car makers are having navigating tariffs alongside the rise of Chinese EV producers.