EV Track: Honda’s $20B Spend Cut, Toyota’s $1M/Hour Loss And BYD’s New 15K EV

Electric vehicles (EVs) aren’t new—they’ve been roaming the streets for several years.

However, a sudden surge in their popularity and adoption has seen the market fill up with numerous automakers to the point where customers are spoilt for choice.

This has left manufacturers competing to provide the cheapest, latest in technology, and most range-efficient vehicles. The downside for some is that the more affordable vehicles tend to take the lion’s share of the market, especially when they offer unparalleled quality.

We’re talking about China’s BYD, which led the market with a 22% share of all EVs sold globally. Tesla followed with just over 10%—still half of what BYD hit. It wasn’t too long ago that the two were fighting neck-to-neck to claim the throne.

Now, BYD is looking to further its lead with its latest EV—the e7 all-electric sedan.


Its new mid-size EV rivals Tesla’s Model 3, except that it’s around 50% cheaper.

The car costs between ¥103,800 and ¥115,800 (yuan), which is around $14,400 to $16,000. Furthermore, as part of a limited-time deal, BYD is offering customers the EV at ¥98,800 or $13,704. Tesla’s Model 3 starts at ¥235,500 or $32,700.

As for range, customers can expect between 450 km and 520 km, based on the model. Charging times span 0.47 and 0.43 hours (fast charging), while the EV can hit a top speed of 150 km/h. It sports a trunk volume of 528 liters, a panoramic sunroof, a 15.6-inch central control screen, and a host of other advanced features.

The vehicles are intended to appeal to younger customers and taxi services.


While BYD is cruising smoothly, other automakers seem to have hit rough roads.

In a recent press briefing, Toshihiro Mibe, President, CEO, and Representative Director of Honda Motor Co. Ltd., revealed the company’s position and focus in the EV sector, which included plans to scale back investments.

Primary among these is Honda’s plan to dial back the investments it planned in EVs and related software from the initially planned ¥10 trillion (yen) or $69 billion to ¥7 trillion or $48 billion, effectively cutting out ¥3 trillion or $20.7 billion through the FY2031 (fiscal year ending March 31, 2031).

However, Honda expects a minimal increase in investment related to the hybrid electric vehicle (HEV) business.

The move comes as the company faces the brunt of recent market slowdowns, resulting in its expected global EV sales ratio in 2030 falling below its previously announced target of 30%. On the other hand, the demand for HEVs is high, which is why Honda will look to introduce more next-generation HEVs from 2027. It also aims to reduce costs by more than 50% for hybrid systems introduced in 2018 and 30% for 2023-introduced systems.

As such, the company plans to realign its automobile electrification strategy in two directions—it will enhance the competitiveness of EV and HEV models with a core focus on the application of intelligent technologies; and strengthen its business foundation through the reassessment of the powertrain portfolio.

With this realignment, Honda expects to increase total EV sales to above the current 3.6 million units, with HEVs hitting 2.2 million units.

Additionally, Honda will look to improve its ADAS offerings, strengthen and popularize its EVs, enhance its production and procurement systems, and boost its motorcycle business.


“The environment surrounding the automobile industry is changing day by day,” said Toshihiro Mibe. “Uncertainty in the business environment is increasing, due particularly to the slowdown in the expansion of EV the market due to several factors, including changes in environmental regulations, which had been the premise for the widespread adoption of EVs, as well as changes in trade policies of various countries.”

“Trade policies” refers to the recent tariffs imposed by the United States on imports from other countries.

This seems to be pinching Toyota the most, as reports show that the automaker could be losing around $1 million per hour.

Despite being the world’s largest automaker by sales and possessing eleven factories in the U.S., the company relies heavily on parts made in Japan and imports certain models from Canada and Mexican manufacturing plants. So, the 25% tariffs imposed on auto parts, vehicle parts, and steel and aluminum is expected to impact it in a major way.

As such, Toyota could face a profit drop of $1.2 billion across just two months. However, Toyota has promised to increase production in the U.S.

Meanwhile, BMW is having a bad time as its sales in China fall in such a way that global sales can’t offset the loss. While its Q1 2025 earnings dropped 23%, the company did find one silver lining—EV sales were good, witnessing a 32% year-over-year rise in Q1 2025.

Even with this, BMW feels the EV push needs to slow down.

“We take ambitious political goals seriously, but we don’t believe in technically one-sided regulations that limit supply,” said CEO Oliver Zipse during BMW’s annual shareholder meeting.

“The same principle applies to the circular economy. Here, too, only a comprehensive approach can enable and stimulate investment. Because, as a standalone technology, e-mobility leads down a dead-end street—that much is now clear. The differences are simply too great, even just within Europe.”

Do you think regulators are pushing for EVs too hard?

Do you think BYD is going to run away with market domination soon or do you think other automakers can challenge the current leader?

Let us know in the comments below!