As the U.S. advances into the next chapter of its energy history, hybrid electric vehicles will play an important role. With both an internal combustion engine and an electric motor, they benefit the environment with lower emissions and benefit their owners with lower costs stemming from enhanced fuel efficiency. In 2022, Congress passed legislation which included incentives to the purchase of either new or used plug-in hybrid electric vehicles. For new qualifying vehicles, a tax credit is available for up to $7,500, while for used qualifying vehicles, the credit is available for up to $4,000.
According to the U.S. Energy Information Administration, in the third quarter of last year, the share of hybrid electric vehicles sold in the U.S. increased to a record 10.6% of total new light-duty vehicles (LDVs). This increase helped push the combined sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles above 20% of LDV sales, marking a national first. Honda is only one of several automakers jumping on the trend. One of the upcoming manufacturing hubs is Toyota Battery Manufacturing North Carolina, a $13.9 billion investment which will employ more than 5,000 employees to run four hybrid electric vehicle lines and ten hybrid electric and battery electric vehicle lines. Plus, Scout Motors’ $2 billion assembly plant in Blythewood, South Carolina, which received a $1.3 billion incentive package from Gov. Henry McMaster, will employ at least 4,000 people to produce all-electric vehicles and plug-in hybrids.
(Bloomberg) —
Honda Motor Co. aims to double hybrid car sales by the end of the decade thanks to renewed demand in every major market except China, where new energy vehicles dominate.
The Japanese automaker has set a target of selling 1.3 million hybrids annually by 2030, effectively doubling the 650,000 it sold in 2023 outside China. To reach that, beginning in 2026 it plans to roll out two overhauled vehicle production platforms, along with a pair of gas-electric powertrains it says will be more efficient and more profitable.
“The goal is still to become carbon neutral by 2050, but demand for hybrids will remain high for the foreseeable future,” Katsuto Hayashi, chief officer of Honda’s automobile operations said Sunday during an event at a test track north of Tokyo. “We see most of that growth happening in North America.”
Hybrids have helped Japanese carmakers regain their competitive edge in North America, the biggest and most important market for legacy brands now that they’re struggling to hold ground in China’s booming EV market.
Restrictions on harmful car emissions are set to be tightened in the US next year, and Honda said its new hybrid systems will help meet those regulations, along with similar rules being imposed in Europe, Japan and China.
Honda previously pledged that EVs and hydrogen fuel cell vehicles would account for 40% of global sales by 2030, and 100% by 2040 as part of its goal to become carbon neutral by the middle of the century.
The company said in May it plans to invest ¥10 trillion ($65 billion) through the 2031 fiscal year in the development of batteries, software and other electrification technology.
Also in May, it revealed plans to lay off full-time factory works in China, where legacy automakers are struggling to keep up with local rivals. The move is part of Honda’s effort to electrify its product lineup in the China, where it aims to introduce 10 battery EVs by 2027.
Honda began forming a partnership this year with Nissan Motor Co. and Mitsubishi Motors Corp. to jointly develop batteries, software and other EV tech. While the alliance hasn’t been finalized, the alliance was complicated by the rapid decline of Nissan, which announced plans in November to cut thousands of jobs, slash production capacity and lower its annual profit outlook after sales fell rapidly in the US and China.
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