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 Motor Co. Chief Executive Toshihiro Mibe called the decisions “a switch in the planned course,” while stressing the long-term shift toward electrification remained unchanged, just pushed back in time.