Honda Motor Co., Ltd. HMC recently introduced new technologies for its upcoming Honda 0 Series, a fresh line of electric vehicles (EVs) set to launch globally in 2026. Built from scratch with a design philosophy called "Thin, Light, and Wise," the series aims to offer five key values through its EVs. The Honda 0 Series will have artistic designs, advanced driver assistance systems for enhanced safety and smart use of IoT technology. It also promises a fun driving experience and excellent energy efficiency. At CES 2024 in Las Vegas, Honda showcased two concept models — the Saloon and the Space-Hub — with a production version of the Saloon expected in 2026. While the flagship Saloon is expected to be expensive, other models in the Honda 0 Series will likely debut in the $50,000 range.
In the United States, Honda is investing $700 million to upgrade three Ohio factories for EV production, with the first factory slated to begin production in late 2025. Honda plans to launch seven models of the Honda 0 Series by 2030 in various sizes. Another model will debut at CES 2025 and incorporate technologies discussed at the Honda 0 Tech Meeting. The "Thin" design focuses on maximizing interior space while maintaining a low profile with minimal overhangs. The "Light" strategy targets to combine sporty handling with high energy efficiency. Honda's new EV platform utilizes ultra-high-strength steel for safety and style. A thin battery pack and compact e-Axle lower the vehicle's center of gravity and enhance both stability and sporty driving.
Honda's hybrid-electric expertise benefits the compact e-Axle design, which includes a downsized inverter and motor for a more efficient layout. This design enhances cabin space while maintaining sleek, low-height styling. The thin battery pack, developed using advanced techniques, is 6% thinner, allowing more space for battery installation. Honda also aims to limit battery degradation to less than 10% over a decade using data-driven diagnostics. An active aerodynamic system adjusts based on speed to reduce drag and improve stability.
The "Wise" approach leverages Honda's software expertise to create software-defined vehicles that will receive continuous updates via over-the-air (OTA) technology, enhancing features post purchase. Honda's AD/ADAS systems aim to offer seamless mobility experiences beyond driving. Building on the Level 3 automated driving system introduced with the Legend model in 2021, future models will expand these capabilities through OTA updates.
Energy management technologies target a 300-mile range in EPA mode while optimizing energy use during heating with innovative thermal management systems. The digital user experience is designed to simplify infotainment through personalized voice assistants and proactive support based on user behavior. Enhanced IT technologies will offer diverse content, including entertainment services and virtual ride-sharing experiences. These innovations, detailed at the Honda 0 Tech Meeting, aim to redefine the EV experience with cutting-edge technology and user-focused design.
HMC’s Zacks Rank & Key Picks
Honda currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Modine Manufacturing Company MOD, CarGurus, Inc. CARG and Suzuki Motor Corporation SZKMY, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2025 sales and earnings suggests year-over-year growth of 8.44% and 18.77%, respectively. Earnings per share (EPS) estimates for fiscal 2025 and 2026 have improved by a penny and 8 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for CARG’s 2024 earnings suggests year-over-year growth of 31.71%. EPS estimates for 2024 and 2025 have improved by 14 cents and 11 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for SZKMY’s fiscal 2025 sales and earnings suggests year-over-year growth of 7.36% and 22.51%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 78 cents and 99 cents, respectively, in the past 60 days.
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