Honda Resets After a Rough Year
Honda is heading into the back half of the decade with a strategy that looks pretty different from what we saw just a couple of years ago. After going all-in on EVs, the company is now rethinking its approach, especially after a reported $2.5 billion global loss for fiscal 2025. North America is now front and center in Honda’s plans.
In a report by Automotive News, American Honda planning chief Gary Robinson said hybrids will become the “core” of the company’s business in the region, with hybrid sales eventually surpassing traditional gasoline models later this decade.
Interestingly, Honda and Acura aren’t taking the same path. For Honda, gas engines are still in the picture, especially for entry-level and budget-friendly models where price is everything. Robinson says they’ll keep gasoline options around where it makes sense to hold onto market share. Acura, on the other hand, is set to lean much harder into hybrids, with pure gas models seen as “lower priority.”
Honda
Longer Product Cycles, More Hybrids
We’re already seeing Honda’s new strategy play out in its product lineup. A supplier memo, obtained by Automotive News, points to several key models sticking around longer than expected as Honda works on its next wave of hybrid tech. That list includes the Odyssey, Accord, and HR-V, as well as Acura’s MDX and Integra. Some of these might not see a full redesign until much later in the decade.
Meanwhile, Honda is working on a new generation of hybrid systems, with North America as the main target. The next Acura RDX could be the first to get the updated hybrid setup as soon as 2028, while Honda keeps refining its two-motor system for models like the Civic, Accord, and CR-V.
Bigger vehicles aren’t being left out. Honda is said to be working on a V6-based hybrid system for models like the Pilot, Passport, Ridgeline, Odyssey, and MDX, pairing electrification with all-wheel drive.
Globally, Honda aims to roll out 15 hybrid models by 2029, with a significant share headed for North America. The new systems are supposed to boost efficiency and cut costs compared to what’s on the road now.
Honda
Acura Moving Upscale, Honda Staying Grounded
The bigger story is that Honda is reading the market instead of forcing a full-on hybrid switch. Hybrids are becoming increasingly popular, but there’s still demand for pure combustion vehicles, especially in segments where price still matters more than going electrified.
That’s probably why Honda is keeping one foot in the combustion camp for now. It’s a safer bet, especially for family cars and popular crossovers, where buyers still want lower costs and the kind of ownership they’re used to. That said, we’re expecting the next Civic to still offer a pure combustion setup, sold side-by-side with the next-gen hybrid system.
Acura, meanwhile, has more freedom to experiment. Luxury buyers are already open to electrified powertrains, and Acura looks ready to use hybrids for efficiency, performance, and refinement.
Will this strategy work? Let’s wait a few more years to see if this plan pans out. We’re just not sure about the longer product cycles at this point, given that keeping products fresh almost always keeps people interested.
Honda
