Honda Automobile Thailand is strengthening its strategy in the electric vehicle (EV) market, which is dominated by Chinese manufacturers, by positioning next-generation hybrid electric vehicles (HEVs) as the core of its product line-up.

By 2029, the Japanese automaker expects nearly 90% of its vehicle sales in Thailand to comprise HEVs, as it seeks to increase its share of a market in which Chinese battery electric vehicles (BEVs) currently hold a significant presence.

Honda aims to promote its "e:HEV" technology, which combines an electric motor with a petrol engine capable of switching between electricity generation and driving the wheels. Honda President and Chief Executive Officer Koji Iwanami stated that the system includes features such as automatic recharging while driving and lower fuel consumption compared with conventional petrol vehicles.

"Honda expects the e:HEV to outperform BEVs. These HEVs will help Japanese carmakers gain market share in Thailand from Chinese BEVs," Mr. Iwanami said.

The company recently introduced four new Honda City variants in Thailand: the e:HEV RS, e:HEV SV, e:HEV V and VTEC Turbo. Honda projects sales of 40,000 units over a one-year period. Honda is targeting total vehicle sales of 76,000 units in Thailand this year, while the overall domestic market is expected to reach 660,000 units.

Globally, Honda has announced plans to reduce the cost of its next-generation hybrid systems by more than 30% compared with previous versions. The company stated that this would enable local vehicle production at lower costs and support its competitiveness against Chinese BEVs.

"Honda's car prices should be more attractive to customers who want new technology but not BEVs," Mr. Iwanami said.

The company also called on the Thai government to extend local content requirements, which currently apply to internal combustion engine (ICE) vehicles, to BEVs, with the aim of ensuring that more than 90% of components are sourced domestically. The automaker stated that Thailand remains an important manufacturing location within its Southeast Asian operations. Its Prachinburi plant, established following an investment of THB 17 billion (US$ 512.6 million) after the 2011 Ayutthaya floods, serves as a manufacturing and export base.

Shun Kuroda, Chief Officer for Sales and Services at Honda Automobile Thailand, said the company remains focused on the B-segment subcompact market, citing factors such as affordability, efficiency and versatility.

He further added that Honda continues to invest in BEV technology alongside hybrid vehicles.

Honda forecasts that HEVs will account for 52% of Thailand's vehicle market by 2029, followed by BEVs at 33%, ICE vehicles at 13%, and other technologies at 2%.