Honda Motor Co. Chief Executive Toshihiro Mibe called the decisions “a switch in the planned course,” while stressing the long-term shift toward electrification remained unchanged, just pushed back in time.

Honda Motor Company has announced a significant revision to its electric vehicle (EV) strategy in response to an EV slowdown in global demand. The company has reduced its target for EV sales from 30 per cent to 20 per cent by 2030.

Honda announced on Tuesday that it will scale back its ambitious electric vehicle (EV) targets, citing slower-than-expected sales in the U.S. market. The Japanese automaker revealed that it would no longer aim for EVs to account for 30% of its global sales by 2030.