Honda is targeting approximately ¥1.5 trillion, or about $9.4 billion, in cost reductions by 2030 as it responds to increasingly intense competition from Chinese automakers. According to Reuters' September 2 reporting based on internal documents and industry sources, Honda has asked suppliers to pursue substantial reductions in several areas, including pressed and forged components, electrical equipment and components associated with software-defined vehicles.

The initiative comes as Honda adjusts its automotive strategy following heavy EV-related costs while placing greater near-term emphasis on gasoline-electric hybrids. Standardized components and more competitive sourcing are among the approaches being considered. Honda told Reuters that it was working globally with suppliers to improve competitiveness and reduce costs, although it did not confirm the specific internal cost-reduction targets reported by Reuters.