Honda, a longstanding player in the automotive industry, is grappling with the challenges of the emerging electric vehicle (EV) market in the United States. According to a report from The Street, Honda executives have shed light on the complexities of EV adoption and the hurdles they face in this rapidly evolving sector.

The Current State of Honda’s EV Lineup

Despite the growing trend towards electrification, Honda’s presence in the US EV market remains minimal. The Japanese automaker currently offers just one EV model in their North American lineup – the Prologue SUV. Sales figures from Kelley Blue Book and Cox Automotive reveal that Honda sold only 1,516 Prologues in the last quarter, a significant increase from a mere 19 units in the previous quarter, but still a fraction of the overall EV market.

Honda Executives Reveal Harsh Reality Of Us Ev Market

Infrastructure: The Major Roadblock

American Honda President and CEO Kazuhiro Takizawa highlighted a crucial factor impeding EV adoption: infrastructure. He stated, “You can’t force the customer to change their mind, really, and to some degree [you can incentivize] them but we just can’t force the people living in, say, the midwest, with no charging stations.”

This sentiment underscores the chicken-and-egg problem facing the EV industry. Consumers are hesitant to switch to EVs without adequate charging infrastructure, while investment in charging networks is slow due to limited EV adoption.

A Gradual Transition

Honda’s Global Executive VP Shinji Aoyama emphasized that the transition to EVs will be a gradual process. He noted, “It’s not a question of ICE or EVs but of the change of ecosystem as penetration of EVs increases.” Aoyama believes that the shift to EVs requires a complete overhaul of the existing automotive ecosystem, from energy production to consumer behavior.

Regional Disparities in EV Enthusiasm

A survey by CDK Global revealed significant regional differences in dealer enthusiasm for selling EVs. In EV-friendly states on the West Coast and in New England, nearly half of the dealers reported that their sales staff were “moderately” or “very excited” to sell EVs. However, dealers in rural areas and regions with extreme weather conditions expressed concerns about the practicality of EVs.

One dealer in Montana commented, “We live in a rural area with large distances between towns … It’s just not a viable alternative to ICE (Internal combustion engines).”

EVXL’s Take

The challenges faced by Honda in the US EV market reflect broader industry trends. As we’ve seen in recent articles on Tesla e General Motors, even established EV manufacturers and legacy automakers transitioning to electric are grappling with infrastructure and adoption issues. However, the gradual increase in charging stations and growing consumer awareness suggest that the EV market is poised for long-term growth, despite current hurdles.

Photos courtesy of Honda