The recent shift in demand for EVs has forced many automakers to rethink their plans for electrification with some either scaling back their plans or making other adjustments to adapt to the changing situation.

Honda is one of these firms that has opted to scale back its EV endeavors. Prior to this recent move, the company dedicated 10 trillion yen ($68 billion) for electrification, only to cut that by 30 percent a few months ago. That 30 percent cut is ironic since Honda once said it wanted EVs to represent that amount of new vehicle sales before rescinding that target. However, the company now says EV are not is end game and it’s instead focusing on other avenues.

EVs not the only path to carbon neutrality

Honda elaborated on some of these new avenues in a recent statement to Australian publication Drive magazine with Australian CEO Jay Joseph stating

“A point I want to make with that is that EVs are not the goal. Battery-electric vehicles are a pathway to achieving carbon neutral—not necessarily the only pathway. EVs will continue to improve—we’re working on solid-state batteries—but our goal is carbon neutral, not battery-electric vehicles. That’s just the obvious pathway in the near to mid-term, but we’ll develop other technologies that help achieve that as well. We would like that to include electrified fuel cell vehicles when the infrastructure is there.’

One potential avenue is hydrogen and while Honda ended production of the Clarity Fuel Cell sometime ago, it has not abandoned the technology outright with the CR-V e:FCEV currently on sale in limited markets. The SUV’s fuel cell setup makes it mimic a traditional hybrid thanks to the  17.7-kWh battery pack that allows the SUV to get 29 miles of pure electric range. The main weakness of hydrogen though is its extremely limited network of fueling stations. The bulk of them are found only in California but outside of that unique environment, the amount of stations are few and far in between. In Michigan, the only hydrogen fueling station currently in use is at Hyundai’s HATCI facility near Ann Arbor.

Honda’s vision part of broader strategy

While Honda used its statement to confirm its willing to take risks to achieve carbon neutrality, look for the company to focus the bulk of its near term efforts in the green models it’s already planning. The “0” Series will be the first true in-house production EV for the company with the models representing a departure from a partnership with GM that saw the creation of the Honda Prologue which is based on the Chevrolet Blazer EV.

In addition to that model, Honda is also preparing to launch the Honda Prelude hybrid with that model attempting to infuse sporty driving with fuel saving fuel economy.