Honda‘s largest investment in history, rumored to be planning to build a new electric vehicle factory in Canada

Source: CINNO

    Japanese automaker Honda is reportedly considering building a new electric vehicle (EV) plant in Canada and plans to produce its own batteries. The related investment amount is expected to be 2 trillion yen, making it the largest investment in Honda‘s history.

    On the 7th, Nikkei News reported that Honda is considering building a new EV factory in Canada and also plans to use the new factory to produce batteries domestically. The total investment amount may reach 2 trillion yen, making it the largest investment in Honda‘s history. Compared with European and American car manufacturers, Honda‘s EV production pace is lagging behind, so it is expected to regain its disadvantage through the above-mentioned new factories.

    The new EV factory may be located near Honda‘s Ontario factory and is expected to be operational as early as around 2028. Honda previously announced that its Ohio factory in the United States will begin producing EVs from 2026, and the new Canadian factory will become Honda‘s second EV production base in North America. By 2028, Honda‘s North American EV annual production capacity can exceed one million units.

    For Honda, North America is an important market that accounts for 40% of global sales. This year (April 2023 to March 2024), Honda‘s North American new car sales are estimated to be about 1.6 million units, although the majority are gasoline cars.