Ford and Honda bet on hybrid cars in 2026 due to declining demand for electric vehicles

Automakers Ford and Honda will focus the development of their model lineups on hybrid cars in 2026. The companies are reviewing their strategies amid declining demand for electric vehicles and a difficult situation in the automotive market. This was reported by Auto Blog, UNN reports.

Honda announced the development of next-generation hybrid technologies, which it plans to implement by 2030. The company announced the launch of a new platform for hybrids, as well as hybrid-electric systems for large vehicles in the North American market.

Honda stated that hybrid models, particularly those appearing from 2027, will be key during the transition period.

"As market demand for HEV models continues to grow, Honda is positioning its HEV models as a core product group," the company said.

Honda is developing a new hybrid system with improved towing capacity and a new V6 engine. The company expects a fuel efficiency increase of approximately 30% compared to internal combustion engine vehicles, as well as a 10% improvement in acceleration. The new platform will be almost 90 kg lighter and will have greater parts unification.

Ford had previously also reduced its focus on electric vehicles and began expanding its hybrid lineup. This move is linked to weaker-than-expected sales of electric cars. Although some Ford and Honda electric vehicles have had a successful start, the overall electric vehicle market has begun to slow down.

Car sales are declining amid economic difficulties and high interest rates. Companies have to adapt to market conditions. 

According to the results of the first half of 2025, Honda's net profit decreased by 37%, and the forecast for the entire year 2025 predicts a 64% drop in profit year-on-year.

Ford and Honda already have experience in producing hybrids, so the transition to this technology does not require creating platforms from scratch. Amid declining interest in electric vehicles, hybrids are seen by automakers as a more stable and economically viable direction for development in the coming years.

Recall

Honda announced the development of a new hybrid technology (HEV) with a V6 gasoline engine for heavy-duty vehicles, expecting a 30% improvement in fuel efficiency. The technology will appear in the US in 2027 and will be applied in the Pilot, Passport, and Acura MDX models.