Honda Is Developing a Powerful Hybrid For America

After putting the failed merger with Nissan in its rearview mirror, Honda is riding solo into the future. It’s reassessing its plans for the coming years after realizing its previously announced electrification goals were overly optimistic. The Tokyo-based automaker is no longer chasing an EV sales ratio of 30 percent by 2030. However, it has set its sights on abandoning combustion engines by 2040.

Meanwhile, many new hybrids are on the way. From 2027 until the end of 2030, Honda intends to launch no fewer than 13 models featuring next-generation hybrid technology globally. It considers North America the “main battleground” for hybrids and plans to cater to local demand by developing a new hybrid setup for big vehicles. The goal is to roll out this new hardware later this decade to target the “solid demand for large-size vehicles with spacious interiors and high cargo capacity.”

Without going into specifics, Honda promises “powerful driving performance” and “high environmental performance.” At the end of 2024, the company discussed working on new 1.5- and 2.0-liter gas engines for small and midsize hybrids. Now, we’re learning that a different system is being engineered for larger vehicles, offering “high towing capability.” These new hybrids will adopt the flatter logo design that forgoes the traditional rectangle, similar to the new wave of EVs coming from China.

Honda hasn’t confirmed which U.S.-bound model will debut the new hybrid system, but an educated guess suggests it could be the Pilot. The current SUV premiered in late 2022 and is expected to transition to a fifth generation before the end of the decade. As the existing three-row family vehicle isn’t electrified, it would make sense for Honda to address this with a hybrid powertrain for the next-gen model. Of course, unless it happens sooner for the current model’s mid-cycle facelift.

CEO Toshihiro Mibe says Honda will offer a broad hybrid lineup in the U.S., from entry-level to large models. A February report claimed that Honda attempted to convince Nissan to scrap its e-Power range-extending technology, aiming for future Nissan models to use Honda’s hybrid system instead.

Honda projects that hybrids will account for 2.2 million annual sales by the decade’s end. Electrification is expected to push total volume beyond the current annual level of 3.6 million vehicles. Additionally, Honda believes it can cut the cost of its next-gen hybrid system in half compared to 2018 levels. The updated electrified powertrain is also estimated to be over 30 percent cheaper to produce than its 2023 counterpart.

Honda is still pursuing EVs, though with far less enthusiasm. It’s reducing investments by 30 percent compared to the plan announced just last year. The new target is to spend 7 trillion yen ($48.5 billion) through March 2031. In the long term, the company remains committed to achieving carbon neutrality by 2050.