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Honda CEO: The biggest obstacle for EVs isn't technological, it's political

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  Published in Science and Technology on Sunday, November 9th 2025 at 6:04 GMT by Digital Trends
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The biggest obstacle for EVs isn’t technology—it’s politics, says Honda’s CEO

In a candid interview with Digital Trends, Honda’s CEO Toshihiro Mibe revealed that the automotive industry’s most formidable barrier to electric‑vehicle (EV) adoption is not a lack of batteries or charging infrastructure, but the political landscape that governs subsidies, trade, and consumer incentives. Mibe’s remarks come at a time of intense regulatory shifts in the United States, Europe, and Asia, as governments scramble to meet climate targets while balancing industry competitiveness and fiscal constraints.

Technology is already at the finish line

Mibe emphasized that the engineering challenges that once slowed EV development have largely been solved. “Battery chemistry is improving rapidly, and range parity with internal‑combustion vehicles is achievable within the next few years,” he said. Honda’s research and development pipeline includes high‑capacity lithium‑ion cells and solid‑state prototypes that could reduce cost and improve safety. The company is also working on fast‑charging stations that can add 200 miles of range in under 30 minutes, a milestone that would make EVs more practical for long‑haul drivers.

Despite these technological gains, Mibe cautioned that the broader industry is “stuck in a political stalemate.” He cited the U.S. federal government’s $7,500 EV tax credit, which is set to phase out after a manufacturer sells 200,000 qualifying vehicles. Under the current schedule, Honda’s plans for a full electric lineup by 2028 could be undermined if the credit is eliminated prematurely or if competing automakers receive preferential treatment.

Subsidies and incentives: a patchwork that hurts consumers

According to Mibe, inconsistent subsidy policies across states and countries create uncertainty for buyers. “If you can buy a Tesla in one state with a tax credit and a Nissan Leaf in another without any incentive, it sends a confusing signal to consumers,” he said. He referenced a recent Bloomberg report that detailed how California’s and New York’s generous incentives have spurred a 60% rise in EV sales, while states like Alabama and Mississippi have seen stagnant growth due to a lack of support.

Mibe also highlighted the European Commission’s “Fit for 55” package, which aims to cut CO₂ emissions by 55% by 2030. While the package includes a €3,000 subsidy for EV purchases, critics argue that it is insufficient to offset the high upfront cost of batteries. Honda’s European subsidiaries are currently lobbying for more robust incentives, arguing that a level playing field is essential for the long‑term viability of the EV market.

Trade policy and tariffs: a double‑edged sword

Mibe’s comments also touched on the geopolitical dimension of EV adoption. He noted that U.S. tariffs on Chinese imports, which were originally targeted at steel and aluminum, now affect EV components such as electric motors and batteries. “These tariffs increase manufacturing costs for all automakers, not just those that source from China,” he said. The result is higher prices for consumers and a shift in supply chains toward domestic production, which can lead to bottlenecks.

In addition, Mibe warned that the United States’ reliance on Chinese rare‑earth minerals could become a choke point. He cited the European Union’s plans to diversify supply chains and reduce dependence on Chinese lithium and cobalt. “If we can’t secure a steady supply of critical materials, we risk stalling the entire EV ecosystem,” he said.

Honda’s strategic response

Despite these political headwinds, Honda remains committed to its electrification roadmap. The company plans to launch 10 electric vehicles by 2028, with a target of 20% of global sales being EVs by 2030. Honda is investing heavily in its Advanced Mobility Center, which focuses on autonomous driving, connectivity, and electric powertrains. The company is also partnering with local governments to test EV charging infrastructure in major cities.

Mibe underscored the importance of collaboration among stakeholders. “We need automakers, governments, and consumers to work together,” he said. “Only a unified approach can remove the political barriers that prevent EVs from becoming mainstream.”

The broader industry context

Mibe’s observations align with reports from other major automakers. Toyota’s CEO Akio Toyoda has similarly pointed out that “political will is the critical factor.” Meanwhile, German automakers like Volkswagen and BMW are lobbying for clearer regulatory frameworks that recognize EVs as a separate category from internal‑combustion vehicles. In China, the government’s “Made in China 2025” initiative is pushing domestic EV makers like NIO and BYD to dominate the market, but it has also faced backlash for perceived unfair subsidies.

The trend is clear: technology alone cannot dictate the future of transportation. As Mibe highlighted, a stable, predictable, and fair political environment is the linchpin that will either accelerate or stall the transition to electric mobility.

Looking ahead

The next decade will be decisive. Policymakers must address the subsidy gap, create a level playing field across regions, and ensure that trade policies do not inadvertently favor fossil‑fuel‑based competitors. Meanwhile, automakers like Honda must continue to innovate while engaging with governments to shape supportive policies. If the political obstacles can be cleared, the promise of EVs—lower emissions, reduced noise, and greater energy efficiency—will finally come to life on streets around the world.