Honda Breaks with EV Trend: Boosting Gas Cars to Fix Affordability
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| Photo by Chris Liverani on Unsplash |
Honda Motor Co. is shifting its US production strategy for 2026, prioritizing cheaper, gasoline-fueled vehicles over hybrids to combat a growing "affordability crisis" and capitalize on relaxed federal emissions standards. With the average new car price nearing $50,000, Honda US sales chief Lance Woelfer announced a decisive move to increase the output of lower-priced, internal combustion trims. This strategic pivot aligns with the Trump administration's loosening of Corporate Average Fuel Economy (CAFE) requirements, allowing automakers to retreat from the aggressive electrification targets set by the previous administration without facing regulatory penalties.
The economics of the showroom floor are driving this reversal. A base gas-powered 2026 Honda CR-V starts approximately $5,000 lower than its hybrid counterpart, a significant gap for budget-conscious consumers. While hybrids previously accounted for over half of CR-V sales, falling gasoline prices have extended the "break-even" period for the more expensive, fuel-efficient technology, making the cheaper upfront cost of gas models more attractive. Despite the shift away from electrification, Honda projects overall US growth, targeting a 4% increase in deliveries to reach 1.5 million vehicles this year by catering to the market's demand for affordability.