Honda To Build EV Plant In Canada

Honda Motor Co. is set to establish a new electric vehicle (EV) factory in Canada, according to sources familiar with the matter.

Honda aims to have electric and hydrogen fuel-cell vehicles account for 40% of its sales in North America by 2030, ultimately reaching 100% by 2040. I Photo: Honda

Kyodo News reported that this move is part of Honda's strategy to bolster its production capacity in North America amid growing competition in the EV market.

The planned factory in Canada will mark Honda's second EV plant in North America, following its ongoing efforts to convert an existing facility in Ohio, USA, to produce all-electric vehicles starting in 2025.

The Canadian government is reportedly considering offering financial support for this project.

Honda's decision to expand its EV production footprint in North America reflects its determination to catch up with competitors like Tesla Inc. in the region's rapidly evolving EV market.

Approximately 30% of Honda's global car sales come from North America, making it a crucial market for the Japanese automaker.

With the goal of accelerating its EV initiatives, Honda aims to have electric and hydrogen fuel-cell vehicles account for 40% of its sales in North America by 2030, ultimately reaching 100% by 2040.

This ambitious target underscores Honda's commitment to embracing sustainable mobility solutions for the future.