Honda postpones self-driving goal to 2028 as EV retreat takes toll

Honda is shifting focus from aggressive autonomous vehicle rollout to a more measured approach as EV profitability pressures mount globally. The company invested heavily in self-driving tech but faces uncertain returns amid intensifying competition from Tesla and Chinese EV makers like BYD.

The Iran war has compounded Honda's challenges by raising raw material and energy costs. Supply chain disruptions for semiconductors and battery materials are constraining production. Chinese market sales have weakened and US competition is fierce. Honda is now prioritizing hybrid vehicles as a more profitable near-term path than pure EV or autonomous tech.

The 2028 postponement signals broader industry caution. Japan's automakers are recalibrating technology roadmaps as profitability becomes paramount. Honda's decision reflects the reality that autonomous driving at scale requires massive R&D spending while demand remains unproven. The company continues development but is delaying commercial deployment until conditions improve.