Honda is considering returning to automobile production in Europe because of new EU regulations

Image: Honda

Honda is considering returning to automobile production in Europe. As Hans de Jaeger, president of Honda’s European operations, recently stated according to Bloomberg, any possible resumption of manufacturing depends on the final details of new EU regulations. Collaboration with another automaker is also an option, but there are no concrete plans at this time.

The European Commission plans to use the Industrial Accelerator Act (IAA) to establish rules that give preference to vehicles manufactured in Europe. The proposal includes requirements for local assembly and a high proportion of European components in order to qualify for certain government contracts and subsidies. The initiative aims to protect industrial production and reduce strategic dependencies amid increasing competition from China. The European Parliament and member states still need to approve the proposal.

Honda has not produced any passenger cars in Europe since shutting down its British manufacturing plant in 2021. In the first nine months of the year, the manufacturer recorded just under 59,000 new vehicle registrations across Europe, a figure de Jaeger believes does not justify building its own factory. Higher sales volumes could change this assessment in the future. Meanwhile, the European CEO hopes that final EU regulations will recognize Japan as a trustworthy partner given Japanese companies’ investments in Europe.

It remains to be seen what exactly Honda might manufacture in Europe. The company fundamentally revised its electric vehicle strategy in 2026, shifting more investment toward hybrid vehicles. In March, the firm scrapped the development and launch of three electric models intended primarily for North America. By the 2028/29 fiscal year, Honda aims to limit its investments in electric cars and instead allocate more funds to gasoline and hybrid vehicles.

Officially, Honda remains committed to the long-term development of electric vehicles and continues working on a new electric vehicle platform as well as solid-state batteries. New hybrid models are also set to hit the market starting next year, with the Japanese company planning to introduce a total of 15 such models globally by March 2030.

Have you found any errors? Please let us know

by email

Thanks for that!

Also interesting

About the author

Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions on ecomento.de. Learn more.

Reader interactions