Recently, Honda has undertaken a substantial overhaul of its long-term electrification strategy. The company has scrapped its initial goals, which were to have electric vehicles (EVs) constitute 20% of new car sales by 2030 and to completely switch to all-electric or fuel cell vehicles by 2040. This strategic pivot follows Honda's first annual loss in almost seven decades, with the restructuring expenses for its EV sector surpassing $9 billion. Moving ahead, Honda is set to concentrate on ultra-high-efficiency hybrid models. It will indefinitely put on hold its $11 billion EV initiative in Canada and abandon plans for three EV models that were to be built on the 0 Series platform. The revised plan entails rolling out two new hybrid models starting from 2028 and introducing at least 15 models fitted with a cutting-edge hybrid system by March 2030, with a particular emphasis on the U.S. market. Regarding investment, Honda plans to earmark 4.4 trillion yen over the next three years for the development of new internal combustion engine-powered and hybrid vehicles, along with $5 billion designated for EV R&D. The company anticipates regaining profitability by the year's end.