Honda Motor announced Tuesday it is reducing its investment in electric vehicles (EVs) and pivoting toward hybrid models, citing slowing global demand for fully electric cars.

Speaking at a press conference, CEO Toshihiro Mibe said the automaker has revised its planned investment in electrification and software through fiscal year 2030 to 7 trillion yen ($48.4 billion), down from the previously announced 10 trillion yen.

The company now plans to launch 13 next-generation hybrid models globally between 2027 and 2031, aiming to capitalise on growing consumer demand for hybrids as a transitional technology.

The move marks a strategic shift for Honda, reflecting broader industry challenges in scaling up EV adoption amid high costs, charging infrastructure gaps, and fluctuating market interest.