The automotive landscape is known for its rapid shifts. Just a year ago, and even more so two years back, both international and domestic automakers were optimistic about electric vehicles (EVs), envisioning a predominantly electric future within ten years, with everything from crossovers to pickup trucks transitioning to battery power. However, the current scenario tells a different story.
On Wednesday, Ford revealed plans to scrap its electric three-row crossover and the next-generation Lightning pickup. New EVs are leasing at historically low prices, while the values of used models have seen significant declines. The reasons for these developments are complex, but according to Honda’s top officials, a major issue lies within the EV ecosystem.
During a discussion with journalists at Monterey Car Week, Kazuhiro Takizawa, President and CEO of American Honda, along with Honda’s global executive vice president Shinji Aoyama, noted that although the adoption of EVs is “steadily increasing,” the current downturn in the market is linked to a fragile EV infrastructure. They emphasized that despite numerous corporate and government incentives for EV purchases, customers are unlikely to make the switch without an adequate ecosystem.
“You can’t force consumers to change their minds, although incentives may help. However, we cannot compel individuals living in areas like the Midwest, where charging stations are scarce,” Takizawa stated. “Even with these incentives, people will not transition from internal combustion engines (ICE) to battery electric vehicles (BEV). Encouraging this shift will be a gradual process that requires preparing the ecosystem first.”
“Progress is being made. We are attentively observing the rise in the number of charging stations relative to the number of electric vehicles. Though it’s not a rapid growth, it is increasing gradually and steadily,” he added.
This perspective echoes sentiments from the retail sector, with auto dealer magnate Rick Hendrick expressing similar views. “You can’t force customers to buy what they don’t desire,” he remarked in March, further asserting that while an EV market will eventually emerge, current readiness is lacking.
Honda’s executives were present in Monterey to introduce two new Acura models, which are vastly different from one another. One was the Acura Performance EV Concept, designed as a preview for the brand’s forthcoming electric vehicles, while the other was the Integra Type S HRC Prototype that hinted at a new series of performance parts for ICE vehicles.
The company’s leader on electrification and strategy also addressed the EV market’s challenges, noting that Honda anticipates the transition will take time and multiple steps for widespread EV adoption in the U.S. He highlighted that as more EVs hit the roads, the ecosystem will evolve more swiftly, marking a significant societal shift that contrasts sharply with the long-standing ICE framework.
“The current slowdown in the EV market isn’t surprising. The more EVs are on the road, the quicker the transformation of the entire EV ecosystem will be,” Aoyama remarked. “This isn’t just about ICE versus EVs; it’s about how the ecosystem evolves as EV penetration rises. The established ICE ecosystem involves processes from petroleum extraction to refining and fueling stations, while EVs require a completely different infrastructure. Hence, this represents a larger societal transformation, and change may demand considerable time.”
“Battery EVs present the most effective means to achieve carbon neutrality, so we remain committed to a long-term perspective, expecting this ecosystem to evolve gradually,” he concluded.
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