Business Essentials for Professionals


Honda Targeting Sale Of 70,000 Prologue EV Units Annually In US From 2024

Honda Targeting Sale Of 70,000 Prologue EV Units Annually In US From 2024
The planned electric Prologue sport utility vehicle from Honda Motor Co, which the company plans to launch for the United States market, is expected to be the corner stone for the US business unit of the company as it targets to achieve initial annual sales of 70,000 units after the vehicles are launched in the market in 2024.
The Japanese car maker also has set a target of achieving a total sale number of 500,000 electric vehicles in the United States by 2030 through the launch of additional electric vehicle models, while achieving a broader target of 100 per cent zero emission vehicles sales in North America by 2040.
An executive order signed by US President Joe Biden last month has set the government to achieve the target of making 50 per cent of all new passenger vehicles sold in the country to be zero-emissions vehicles by 2030.
Honda has struck up a partnership with America’s General Motors Co for developing the Honda Prologue and will be based on te Ultium platform of the Detroit auto maker. The platform is a modular platform and battery system. An electric Acura-brand SUV is also being co-developed by Honda and GM.
Both the Prologue and the Acura SUV will be assembled by GM and both the models will go into the market for sale in 2024. Honda however has not specifically stated the GM factory where the vehicles would be made, neither the name nor volume targets for the Acura.
A series of electrified vehicles based on the Honda developed e-Architecture will be introduced by Honda after the launch of the two models being developed by GM by 2023. Honda’s e-Architecture is a new EV platform whose development is being led by Honda.  For the later electric vehicle models, Honda would use its plans in North America for assembling them.  
The initial focus of Honda will be on sale of the Prologue in California and other states like Texas and Florida, said Dave Gardner, executive vice president of national operations at American Honda Motor Co, in a statement. Adding more hybrid-electric systems to more US models is also being planned by Honda, he said.
"Our strategy is focused on introducing a higher percentage of hybrids in core models in the near term, making a committed effort to achieve higher volume leading to the introduction of our Honda Prologue," Gardner said.

Christopher J. Mitchell

Markets | Companies | M&A | Innovation | People | Management | Lifestyle | World | Misc