Honda's Aggressive Strategy: Relying on e:HEV Technology to Curb Chinese Electric Vehicle Expansion

Honda Automobile Thailand is focusing on boosting sales of e:HEV hybrid cars to 90 percent by 2029 to win the automotive market competition against the dominance of Chinese electric vehicles.

Oleh Admin Portal 13 Jul 2026 2 menit baca 💬 0 komentar

Sumber: foto.wartaekonomi.co.id

Facing the onslaught of increasingly aggressive Chinese battery electric vehicle (BEV) manufacturers in the Southeast Asian market, Honda Automobile (Thailand) is taking strategic steps by positioning Hybrid Electric Vehicle (HEV) technology as the spearhead of its sales. The company targets that by 2029, around 90 percent of Honda's total sales portfolio in Thailand will be dominated by hybrid-powered product lines.

The key to this strategy lies in Honda's e:HEV technology, which combines the advantages of a gasoline engine with an electric motor without requiring users to perform external charging. According to Koji Iwanami, President and CEO of Honda Automobile (Thailand), this technology's flexibility is a major draw for consumers seeking high fuel efficiency but who do not yet feel confident enough to switch completely to a pure electric vehicle ecosystem.

To strengthen its bargaining position in the market, Honda is committed to cutting the production costs of its next-generation hybrid system by more than 30 percent. This efficiency measure is expected to lower vehicle selling prices to be more competitive, while responding to tight price competition from Chinese automakers. Additionally, Honda is urging the Thai government to enforce stricter local content requirements (TKDN) for foreign BEV manufacturers to support the local component industry ecosystem.

Although currently focusing development on B-segment vehicles at its manufacturing center in Prachinburi, Honda emphasized that it will not abandon electric vehicle research. The company continues to allocate long-term investments for BEV technology as part of the broader global energy transition.

Based on company projections, Thailand's automotive market in 2029 will be dominated by hybrid vehicles with a market share reaching 52 percent. This figure significantly exceeds the estimated market share for pure electric vehicles, predicted at 33 percent, while the remainder will be filled by internal combustion engine (ICE) cars and other alternative technologies.