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Could Honda's EV strategy be the cost cutter it needs?

Low margins have weighed on Japanese automaker's share price

Honda unveils a prototype of an electric vehicle in its e:N series in China in November 2021. (Photo by Takashi Kawakami)

TOKYO -- Honda Motor's new plan to sell more electric cars has sparked little enthusiasm among investors, judging by the automaker's share price. Given its chronically low margins on autos, that may come as no surprise.

Honda aims to release 30 EV models by 2030, the Japanese automaker said this month. A year earlier, the company pledged to stop selling gasoline autos by 2040. Its new strategy seeks to answer critics who said Honda's commitment lacked specifics.

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