Honda speeds up EV push with record R&D spending

Carmaker's per-auto development cost is more than twice Toyota's

20240510N Honda

Honda plans to build electric vehicles and their parts in Ontario with financial support from the Canadian and provincial governments. © Reuters

SHOYA OKINAGA and KAZUHIRO NOGUCHI, Nikkei staff writers

TOKYO -- Honda Motor plans to pour a record 1.19 trillion yen ($7.6 billion) into research and development this fiscal year as it steps up the development of electric vehicles to catch up to Tesla and Chinese players.

The R&D budget, announced Friday, represents a 23% increase on the year and exceeds 1 trillion yen for the first time, with the bulk of it going toward EVs.

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