Editor's Choice: Honda's shattered EV dream

Honda President Toshihiro Mibe was reluctant to abandon his company's bold EV shift despite warning signs in the market.

(Nikkei montage)
Hello from Tokyo.

Honda Motor, an auto giant with strong brand power in global markets, including Asia, is facing one of the gravest crises in its history.

Having misjudged its strategic pivot to electric vehicles, the company announced in mid-March that it would halt development of several EV models.

The decision has led to massive write-offs , and -- for the first time since its listing in 1957 -- the company will post a net loss.

Honda had declared that by 2040 it would only sell EVs and fuel cell vehicles, committing to an "engine-free" future.

The aggressive plan has now backfired.

Honda has cited factors such as the loosening of U.S.

environmental regulations as reasons for a major overhaul of its EV strategy.

But in my view, the fundamental failure was that management's decision to pull back from EVs came far too late.

Honda also announced the cancellation of the Afeela, the luxury EV it had been jointly developing with Sony Group, which was founded two years before Honda and has also been a symbol of Japan's postwar startup success.

The Honda-Sony joint venture was widely seen as a bold attempt to help Japan's corporate giants rediscover their long-lost spirit of innovation.

Nikkei Asia also published an analysis last weekend of Singapore's unique new-car market.

In a city-state where owning a car entails enormous costs, demand for high-end dream marques remains strong .

Germany's Porsche, for example, has decided to build a racetrack for its customers.

Singapore may have offered a strong opportunity for Honda and Sony's Afeela, which was expected to carry a price tag of nearly $90,000.

Unfortunately, it now seems that this jointly developed EV will never realize the dream of cruising down Orchard Road.

1.

Over the past 20 years, Sumber Alfaria Trijaya, the operator of major Indonesian convenience store chain Alfamart, has opened an average of 1,000 outlets annually.

But this year, the company will start reducing that pace as it grapples with Indonesia's shrinking middle class and faces looming physical-store saturation.

CEO Anggara Hans Prawira talks about the company's quick commerce strategy , its "dark store" plans and its recent entry into Bangladesh to reverse the slowdown.

2.

Although Singapore first banned vapes as a health hazard in 2010, residents of the city-state have continued to sneak puffs of ones smuggled into the country.

Alarmed by the discovery that some are being used for drugs far more dangerous than nicotine, the authorities have twice moved to broaden and strengthen vaping-related penalties in the past year.

But some argue for adopting the approach of countries like the Philippines and Indonesia, which use regulation to manage vaping risks while preserving what advocates see as a valuable tool for those trying to quit smoking.

Finally, one note.

Nikkei Asia has won two 2025 Best in Business Awards from the U.S.-based Society for Advancing Business Editing and Writing (SABEW), marking the fifth consecutive year we have received top honors in this prestigious journalism competition.

This achievement reflects not only the hard work of our newsroom but also the continued support of our readers.

Thank you very much.

Wishing you a wonderful weekend!

Follow us on Threads and Instagram
Latest on Editor-in-Chief’s Picks