Japan’s Honda Motor is contemplating a substantial move into Canada with the potential construction of an electric vehicle manufacturing plant, Nikkei news report said.
This project, estimated at nearly 2 trillion yen ($13.83 billion USD), might encompass in-house battery production, marking one of Honda’s most significant investments, the report indicated.
When approached for comment, Honda refrained from providing details, stating that there was nothing currently available to disclose. Despite being Japan’s second-largest automaker, Honda Motor has been cautious in ramping up electric vehicle sales.
Canada’s industry minister’s office responded to Reuters, acknowledging news reports of Honda’s interest in a substantial investment in Canada. The spokesperson highlighted this as a testament to Canada’s workforce quality and industry robustness, underscoring the country’s rising reputation as an eco-friendly supplier and a global frontrunner in electric vehicles.
Honda’s global sales figures reveal that battery-powered vehicles accounted for less than 0.5 percent of approximately 2.8 million cars sold in the first nine months of 2023.
The Japanese automaker is scouting various potential locations for the plant, including proximity to an existing automobile factory in Ontario, as per Nikkei’s information. Honda aims to finalize a decision by year-end, with plans for the new plant to potentially commence operations as early as 2028.
Already scheduled to initiate EV production and sales in North America by 2026, Honda’s strategy aligns with its upcoming Honda e:Architecture.
Furthermore, Honda had announced a partnership with LG Energy Solution in 2022 to establish a joint-venture battery plant worth $4.4 billion in Ohio.
However, recent developments revealed that Honda and General Motors abandoned plans to collaboratively develop affordable electric vehicles in October 2023. This decision came a year after their $5 billion joint effort to outpace Tesla in sales, signifying a shift in their strategic partnership.
Honda will present the world premiere of its new EV series for global markets as a part of its exhibit at CES 2024, which will be held January 9-12, 2024 in Las Vegas, Nevada, U.S.
Tokyo-based Honda’s sales rose 17 percent to 4.9 trillion yen ($32 billion) in July-September from a year earlier. Honda’s profit rose to 254 billion yen ($1.7 billion) from 189 billion yen.