TOKYO - Japanese automaker Honda Motor Co on Tuesday announced a revision to its electric vehicle (EV) strategy, cutting its planned investment through fiscal 2030 from 10 trillion yen (about $69.3 billion) to 7 trillion yen ($48.5 billion), a reduction of 30 percent.

The decision came amid slower-than-expected EV adoption and increasing policy uncertainty, particularly surrounding US EV subsidies.

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Honda President Toshihiro Mibe revealed that the company now expects EVs to account for about 20 percent of its total vehicle sales by 2030, down from the earlier 30 percent target.

A planned EV and battery factory in Canada, initially scheduled to start operations in 2028, will be postponed by two years. Honda will reassess the project based on conditions in two years.

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Despite the cutback, Honda will maintain its long-term goal to transition all new vehicle sales worldwide to EVs and fuel cell vehicles by 2040. Meanwhile, it plans to double global sales of hybrid vehicles to 2.2 million units by 2030 and introduce 13 new hybrid models over the next four years.

Honda will also focus on strengthening its highly profitable motorcycle business, aiming to raise its global market share from 40 percent to over 50 percent.