Honda Reassesses Electrification Strategy Amid Shifting Global Market Dynamics

Honda Motor Co

Japanese automotive major Honda Motor Co, has announced a strategic realignment of its electrification roadmap, responding to evolving global market conditions and regulatory landscapes.

In a recent business briefing, Toshihiro Mibe, Director, President and Representative Executive Officer (Global CEO), emphasised on the company's commitment to achieving carbon neutrality and zero traffic fatalities by 2050, while adapting to current challenges.

He reiterated that Honda's initial target to achieve 100 percent global sales of electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) by 2040 remains unchanged. However, the company acknowledges a slower-than-anticipated adoption of EVs, particularly in the United States and Europe, due to relaxed environmental regulations and market uncertainties.

Conversely, hybrid-electric vehicles (HEVs) are experiencing increased demand, offering a practical solution for reducing CO2 emissions without the immediate need for extensive charging infrastructure.

Two-pronged strategy

To navigate these shifts, Honda has outlined two primary strategic directions:

  • Enhancing EV and HEV Competitiveness: Honda aims to integrate intelligent technologies into its EV and HEV models, focusing on advanced driver assistance systems (ADAS) and connected services to deliver new value to customers.

  • Reassessing Powertrain Portfolio: The company plans to diversify its powertrain offerings, balancing the development of EVs, HEVs and internal combustion engine (ICE) vehicles to meet varying regional demands and regulatory requirements.

Recognising the scale of investment required for electrification and intelligent technologies, Honda is exploring strategic partnerships, including ongoing discussions with Nissan and Mitsubishi Motors. While a full business integration is not currently planned, these collaborations aim to strengthen shared technological capabilities and market presence.

The Japanese automaker which had announced an ambitious plan to invest 10 trillion YEN towards establishing a robust EV value chain, exemplified by its planned battery-focused project in Canada. Now, the company has revised the CAPEX to 7 trillion YEN till 31 March 2031.

“As for EVs, due to the recent market slowdown, our EV sales ratio in 2030 is now expected to fall below the previously announced target of 30 percent. On the other hand, the demand for HEV models is high. Therefore, we will position our HEVs, mostly next-generation HEV models which we will introduce in 2027 onward, as a group of products that will play a key role during the transition period towards the popularisation of EVs,” said Mibe.


The company targets total automobile sales volume of 3.6 million units, with a HEV sales target of 2.2 million units by 2030.  

Two-wheeler sales

Honda Motor Co. announced that its global two-wheeler sales reached a record 20.57 million units for the FY2025, capturing approximately 40 percent of the global two-wheeler market. The company set new all-time sales records in 37 countries and territories, reinforcing its leadership position in the two-wheeler segment.

Looking ahead, Honda expects continued growth in global motorcycle demand, particularly across the Global South, with India – a key market with a growing population and rising income levels – at the forefront. Industry-wide sales are projected to increase from the current 50 million units to approximately 60 million by 2030.

To capitalise on this growth, Honda plans to introduce a broader range of two-wheelers tailored to the varied needs of global customers. It will also optimise its supply chain to ensure more efficient delivery of both internal combustion engine (ICE) and electric models.

As part of its commitment to environmental leadership, Honda is accelerating the electrification of its motorcycle lineup. This includes improving fuel efficiency in ICE models and expanding its range of flex-fuel compatible options.

In early 2025, Honda launched the Active e: and QC1 electric models in India. The CUV e: and ICON e:, designed as global electric commuter models, have already rolled out in Indonesia, Vietnam, Thailand and the Philippines, with plans to expand to Europe and Japan later this year.

In a major strategic move, Honda will begin production of electric motorcycles at a dedicated, high-efficiency plant in India starting in 2028. This facility will focus on modularised models developed exclusively for electric platforms, aiming to boost affordability and scalability in electric two-wheelers.

Through these initiatives, Honda aims to broaden access to electric motorcycles, ultimately targeting the top position in the global electric motorcycle market.

By continuing to launch competitive products and strengthening its supply chain for both ICE and electric vehicles, Honda is positioning itself for long-term profitability. The company aims to achieve a 50 percent global market share and a return on sales (ROS) exceeding 15 percent by fiscal year 2031.

Tata Technologies Partners Synopsys To Accelerate SDV Development

Tata Technologies - Synopsys

Tata Technologies has announced a partnership with Synopsys, a provider of engineering solutions, to accelerate the shift towards Software-Defined Mobility (SDV). The collaboration aims to accelerate the development, verification and validation of automotive electronics systems, helping Original Equipment Manufacturers address the complexity of SDVs.

The collaboration will combine Tata Technologies’ expertise in vehicle engineering with Synopsys’ virtualisation solutions to enable the deployment of electronics digital twins (eDTs).

The companies have already worked with a leading European luxury OEM in a pilot engagement, delivering a blueprint to transition the manufacturer's existing electrical/electronic (E/E) architecture to a next-generation software-defined design. Pilot programmes with other major OEMs are also underway across North America, Europe and India.

The joint effort will focus on major SDV domains, including ADAS, powertrain, chassis, infotainment and electrification. Key areas of focus include:

  • Shift Left Enablement: Developing virtual prototypes and simulation models for early software bring-up.
  • Analysis: Using Synopsys tools for performance, power, safety, and reliability analysis for faster ECU development cycles.
  • Verification: Providing embedded systems and software verification and validation services aligned with ISO 26262 and ASPICE standards.

Sriram Lakshminarayanan, Chief Technology Officer, Tata Technologies, said, “The digital shift is redefining the future of mobility, and our partnership with Synopsys is a purposeful step towards realising a future led by software-defined innovations. As OEMs move to new ways of working, there is a growing demand for engineering and digital services. Together, we are empowering OEMs to deliver safer, smarter, and more sustainable vehicles that enhance the human experience and accelerate the industry’s transition to a software-defined future.”

Tom De Schutter, Senior Vice-President, Product Management & Markets Group at Synopsys, said, "The complexity of SDV systems requires a new level of collaboration across the automotive ecosystem. By bringing together our world-class digital twin, verification, and IP platforms with Tata Technologies’ engineering expertise and global delivery, we are enabling OEMs to accelerate development, validation and delivery of complex software- and AI-defined vehicles. The collaboration is a great example of how the automotive ecosystem is coming together to accelerate innovation while reducing risk and time to market in a dynamic mobility landscape.”

Mobileye To Showcase Its Tech At ARAI’s ADAS Test City Inauguration

ADAS Test City

Mobileye, a leading provider of Advanced Driver Assistance Systems (ADAS) and autonomous driving technologies, is set to be a focus at the inauguration of the ADAS Test City on 12 December 2025 in Pune, India.

The ADAS Test City dubbed India’s first testing track dedicated to ADAS and autonomous vehicles, has been developed by the Automotive Research Association of India (ARAI).

Mobileye’s participation highlights its commitment to India’s evolving automotive landscape. The ADAS Test City is designed as a pseudo-urban test environment to validate key ADAS features such as Automatic Emergency Braking (AEB), Lane Keeping Assist (LKA), Pedestrian Detection and Adaptive Cruise Control under realistic driving conditions.

Elie Luskin, Vice-President, India and China, Mobileye, said, “The successful launch of India’s first dedicated ADAS testing track by ARAI marks a major milestone, underscoring the market’s commitment to scaling ADAS adoption and improving road safety – an ambition that aligns seamlessly with Mobileye’s long-term mission both globally and in India. As a global leader in ADAS and autonomous driving, Mobileye brings cutting-edge expertise and solutions to India, working alongside local partners to unlock new opportunities and deliver safer roads for all. We are proud to support ARAI in this important step and to continue strengthening our role in India’s ADAS journey.”

Mobileye’s leadership will play a central role in the event's dialogue:

  • Keynote Presentation: Elie Luskin will deliver a keynote outlining Mobileye’s global roadmap and its impact on India’s drive toward safer mobility.
  • Panel Discussion: Dhairyashil Gaekwad, Director, Business Development & Strategy, India, will participate in a panel on ‘ADAS for the Indian Market – From Premium to Mass Adoption,’ sharing insights on integrating safety systems across all vehicle segments.

The ADAS Show brings together automotive leaders from OEMs and suppliers to accelerate India’s transition toward intelligent mobility.

Sibros Appoints Vijay Sharma As New Chief Customer Officer

Vijay Sharma - Sibros

Sibros, the company behind the Deep Connected Platform for software-defined vehicles (SDVs), has appointed Vijay Sharma as its new Chief Customer Officer (CCO).

In his new role, Sharma will lead global customer success, solution engineering and customer programmes to support Sibros' expanding portfolio of connected vehicle solutions and growing customer base.

His leadership is expected to strengthen Sibros' capabilities across its Deep Connected Platform, as well as in areas like functional safety (FuSa), security, applications, systems, diagnostics & electronic and electrical architecture. This focus will enable end-to-end SDV partnerships with customers.

Sharma brings nearly two decades of global experience from FEV, where he served as Managing Director and Technical Director at FEV India. At FEV, he led large-scale vehicle software, connectivity and energy mobility programmes for Indian and global customers.

Hemant Sikaria, CEO, Sibros, said, “Vijay’s combination of deep technical insight and customer-focused execution aligns perfectly with our mission to power the software-defined future of mobility. As we scale our solutions and support a broader range of OEMs worldwide, his leadership will ensure our customers can deploy, adopt, and evolve with confidence.”

Vijay Sharma, said, “The industry is transitioning from one-time launches to continuously updatable, software-driven vehicles. Sibros is uniquely positioned to enable that shift, and I’m excited to help our customers around the world implement the platforms and programs needed to unlock their SDV strategies.”

As CCO, Sharma will guide the full customer lifecycle, bridging product, engineering and business teams to drive successful outcomes. This move comes as OEMs and innovators across passenger, commercial, two-wheel and off-highway segments adopt the Sibros platform.

Mahle Begins Supplies Of Cooling Module For Stationary Battery Storage Market

MCS

Tier 1 supplier Mahle is entering the stationary battery storage systems (BESS) market after securing its first series order for a cooling module. These storage solutions are used for providing and stabilising power grids and for the temporary storage of renewable energy from sources like wind and solar power.

The company shared that its customer is an international commercial vehicles and drivetrain manufacturer that builds its own battery storage systems. Mahle will leverage its experience in developing cooling modules for electrified buses for this new sector. The newly developed cooling module will go into series production in 2026.

Christian Kuechlin, Vice-President, Mahle Industrial Thermal Systems, said, “We can easily transfer the knowledge of cooling modules we have gathered in the transportation sector to stationary battery storage system in containers. Since the space in the container is mainly to be used for battery stacks, Mahle develops space saving, compact and efficient cooling solutions in line with customer requirements.”

Older stationary BESS were cooled by simple air conditioning systems. However, the higher energy density in modern lithium-ion batteries generates more waste heat, requiring a higher cooling capacity.

The Mahle module provides up to 42 kW of liquid cooling. This ensures the batteries operate in the optimal temperature range of 20deg Celsius to 30deg Celsius, which is vital for long service life, durability and stable load management.

Mahle is expanding its business beyond the automotive sector. In industrial thermal management, the company is also developing modules for liquid-cooled cables in fast-charging stations for electric vehicles. Thermal management technologies can also benefit high-performance computing, data centres and manufacturers of heat pumps or photovoltaic systems.