AsianFin -- Honda Motor announced Tuesday it is dialing down its investment in electric vehicles, citing weakening global demand, and will instead ramp up efforts to expand its hybrid lineup.

CEO Toshihiro Mibe said at a press conference that the automaker has revised its electrification and software investment target through fiscal 2030 to 7 trillion yen (\$48.4 billion), down from its earlier commitment of 10 trillion yen.

The strategic pivot reflects Honda’s intent to capitalize on growing hybrid demand as full-electric vehicle sales lose momentum globally.