Honda is setting the stage for a strong entry into the electric vehicle (EV) market, even though it currently does not have any EVs available for sale. Its first EVs, the Honda Prologue and Acura ZDX SUVs, are set to debut in 2024. Ahead of this launch, Honda has shifted focus to establishing a vast charging network for its future customers. This move departs from the industry standard of introducing vehicles first and addressing charging infrastructure later, reflecting Honda’s commitment to long-term success in the EV sector.
The company’s strategy includes partnerships with EVgo and Electrify America, which will grant Honda EV users access to 100,000 fast chargers by 2030. Honda has also adopted the NACS charging standard, which extends compatibility to Tesla’s extensive Supercharger network. By securing access to these resources, Honda is proactively addressing the charging challenges that many EV owners face, aiming to make its offerings more attractive to prospective buyers.
Honda’s goals in the EV market are ambitious. It plans to introduce 30 EV models and achieve an annual production rate of over two million vehicles by 2030. The Prologue, one of its first EVs, targets the SUV segment, which is highly popular in the United States. Priced in the upper $40,000s with a 300-mile range, the Prologue balances affordability and performance, while positioning itself as a strong contender in this competitive category.
Collaborations with General Motors (GM) are central to Honda’s strategy. The Prologue and Acura ZDX both utilize GM’s Ultium battery platform, ensuring high-quality performance for these new vehicles. By focusing on SUVs, which make up nearly 79% of U.S. vehicle sales as of mid-2023, Honda is aligning its EV strategy with market demand. This approach leverages Honda’s historical success and brand recognition in the SUV market to secure a foothold in the EV sector.
Ultimately, Honda’s focus on charging infrastructure and strategic partnerships highlights its calculated approach to EV adoption. While its vehicles may be priced higher than competitors like Volkswagen and Hyundai, Honda’s trusted reputation and dominance in the SUV category give it a competitive edge. This comprehensive planning, both in terms of charging access and product strategy, positions Honda for long-term success as it expands its EV offerings.