Honda to Phase Out ICE Vehicles By 2040

Honda Clarity

With a bold decision to phase out ICE vehicles by 2040 Japanese carmaker honda also is joining the league of electric cars. The 72-Year-old company has been forced by the market requirements to revisit the companies relationship with gasoline engines.

A Bold Move From A Japanese Carmaker

Honda has been the first of Japan’s manufacturers to declare officially that it would phase out gasoline-powered car sales entirely by 2040, giving new CEO Toshihiro Mibe a once-in-a-career chance to stamp his mark on a firm with an 84-year history. This is an attempt to match what other big manufacturers claim to be doing. Honda’s ultimate objective is to offer a more environmentally and economically friendly lineup of vehicles and eventually become carbon-neutral, however attaining that goal would take years, if not decades.

Prime Minister Yoshihide Suga has promised to achieve carbon neutrality by 2050, and firms who are first to market may gain a competitive advantage and Honda is counting on this opportunity.

Plan Which Extends Beyond Japan

The company’s Electrification is also a wager that extends beyond Japan’s boundaries. According to BloombergNEF, global passenger EV sales are expected to skyrocket from 3.1 million in 2020 to 14 million in 2025. Honda, which generates around 56 % of its sales in North America, has already begun forming alliances with major manufacturers abroad and has signed a deal to use GM’s battery technology in 2018.

Honda’s electric plan also includes motorbikes, which are the company’s traditional strengths. The automaker intends to introduce three new electric two-wheelers and ten new electric vehicles in China by 2024.

The Honda e

The all-new Honda e is the ultimate creation based on the brand’s philosophy of human-centered engineering. Engineered from the ground up to deliver a package perfect for the modern urban environment.  Honda e is the initial move from the company to the all-electric future. This compact car is the result of Honda’s desire to improve the environment, particularly in congested metropolitan areas, and companies’ strategy to penetrate the EV market mainly in Europe.

Specs of Honda e Released in Europe

The sophisticated electric drivetrain features Honda’s proven electrification technology, as well as its fast-charging capability to suit the demands of daily commuting. With 80 % charge supplied in just 30 minutes of quick charging, the high-capacity 35.5 kWh battery delivers a range of 222 kilometers (WLTP).

Honda’s Alliance with GM

Honda and General Motors have agreed to collaborate on the development of two all-new electric cars based on GM’s extremely flexible global EV platform and proprietary Ultium batteries. Honda will design the new EVs’ exteriors and interiors entirely, and the platform will be built to support Honda’s driving style. Both company’s development experiences will be used in the production of these Honda electric cars, which will be built at GM factories in North America. 

GM and Honda have a long-standing partnership in the field of electrification such as work on fuel cells as well as the Cruise Origin, an electric, self-driving, and shared car unveiled in 2020 in San Francisco. Honda joined GM’s battery module development efforts in 2018.


It seems that Honda is not merely making a public statement to catch up with the company’s competitors but are dedicated to their ambitious goal of complete electrification by 2040. Yes, the goal is challenging since they started their electrification journey only a few years back.

There are two main reasons that make Honda’s strategy more compelling. The one is their alliance with GM. GM has already declared its plans for the future and both of them can reinforce their product line through technology sharing. Such collaborations are necessary for conventional carmakers to join hands in the race with companies like Tesla who is far more progressed in the EV industry. 

The second one is the way they opted for penetrating into the EV market with their compact car the Honda e. The company is placing a safe bid here which will help the company to make their first all-electric car more accessible to the public and also gaining trust and confidence from the shareholders of the company.

You may also like