Honda said despite the shift in strategy, it still aims for all of its global new-vehicle sales to come from battery-electric of hydrogen fuel-cell models by 2040.

Honda Motor (NYSE:HMC) is scaling back its electric vehicle (EV) ambitions, cutting planned investment by 30% to 7 trillion yen ($48.4 billion) through fiscal 2030, citing weaker-than-expected demand.

Honda is rethinking its playbook when it comes to electric vehicles and the software that powers them.Honda says the market for EVs isn't quite what was initially projected; instead, the automaker plans on bringing even more hybrid models to market—I am Soichiro's complete lack of surprise.