Honda CEO Refuses to Resign After EV Strategy Failure
Honda CEO Toshihiro Mibe has refused to resign despite growing calls from the board and shareholders following the company's underperformance in the electric vehicle (EV) segment. According to a report by Malaysian automotive news outlet Careta, Mibe stated that he would not step down, arguing that the company’s electrification strategy is a long-term plan that requires continued leadership to execute. The controversy centres on Honda's slow EV rollout compared to rivals such as Toyota and BYD, which have gained significant market share in global and Southeast Asian markets, including Malaysia.
Key Facts
| Attribute | Value |
|---|---|
| CEO Name | Toshihiro Mibe |
| Company | Honda Motor Co., Ltd. |
| Position Tenure | Appointed April 2021; current term until June 2025 |
| Global EV Sales (2024) | Approximately 11,000 units (down 12% year‑on‑year, per Careta source) |
| Global EV Market Share (2024) | 0.2% |
| Key Investors Pressuring CEO | Institutional shareholders representing about 15% of voting rights |
| Date of Report | March 2025 (as published on Careta) |
| Malaysian Presence | Honda Malaysia Sdn. Bhd. – a joint venture with DRB‑Hicom; local assembly in Pegoh, Melaka |
Why Is Honda’s EV Strategy Considered a Failure?
Honda’s EV strategy is regarded as a failure because its global EV sales in 2024 totalled only 11,000 units, a decline of 12% from the previous year, while competitors like BYD sold over 1.5 million EVs globally. The company’s first dedicated EV platform, the e:N Architecture, has been delayed, and the only EV currently offered in Malaysia (the e:N1 prototype) is not yet available for purchase. Honda’s failure to produce a competitive mass‑market EV has led to a 15% drop in its stock price over the past 12 months, according to the Careta article.
“I have no intention of resigning. Honda’s EV roadmap is a long‑term plan, and we are on track to achieve our goals. The current results do not reflect the full potential of our strategy.”
— Toshihiro Mibe, CEO of Honda Motor Co., as quoted by Careta
What Are the Internal Pressures on the CEO?
The internal pressures come from a group of institutional shareholders representing approximately 15% of Honda’s voting rights, who have filed a formal request for Mibe’s resignation. The board of directors, however, has publicly supported the CEO, citing the need for stability during a critical transition. In a March 2025 board meeting, independent directors voted 8‑2 in favour of retaining Mibe, according to the Careta report. Analysts note that the pressure is expected to intensify if Honda’s next financial results show further deterioration in EV sales.
What Is Next for Honda’s Electrification Plan in Malaysia?
Honda Malaysia has not yet launched a fully electric vehicle, but the company is expected to introduce the e:N1 (a battery‑electric SUV) in late 2025. The model will be imported from Thailand initially, and local CKD (completely knocked down) assembly may follow if demand justifies it. Honda’s global plan includes 30 EV models by 2030 and a total investment of USD 40 billion (approximately RM 185 billion) in electrification. For Malaysian consumers, the delay means hybrids—such as the Honda City and HR‑V e:HEV—will remain the only electrified options for the next 12–18 months.
Who Is This For in Malaysia?
This news is most relevant for Malaysian car buyers considering a Honda EV purchase, as it signals that the brand’s full‑electric models may arrive later than previously expected. It also affects investors holding Honda shares through Malaysian unit trusts or direct holdings, as the stock volatility may persist. The situation underscores a broader challenge for legacy Japanese automakers in adapting to the EV transition while competing with Chinese brands that have rapidly expanded into Southeast Asia, including Malaysia.
Common Questions
Will Honda’s CEO resignation pressure affect its Malaysian operations?
Honda Malaysia is a joint venture that operates independently in terms of local production and sales. The global leadership crisis is unlikely to directly affect Malaysian dealerships or service centres, but delays in global EV development could postpone local launches.
Should Malaysian buyers wait for Honda EVs or buy a hybrid now?
If you need a car in 2025, Honda’s e:HEV hybrids offer strong fuel efficiency and are already available. Waiting for a full EV may mean missing out on current hybrids and facing a potential price premium when the e:N1 arrives.
Is Honda developing a dedicated EV platform for Southeast Asia?
Honda is adapting its global e:N Architecture for right‑hand‑drive markets, including Malaysia. However, no specific Southeast‑Asian‑only platform has been announced. The e:N1 will be the first model to test regional demand.
Sources and Methodology
This article is based primarily on the Careta article published in March 2025 (see original source). Facts attributed to the source, including sales figures, investor pressure percentages, and direct quotes, are derived from that article. No additional external sources were synthesised. Currency conversions from USD to RM are approximate, using a rate of 1 USD = 4.65 RM (March 2025). Information specific to Honda Malaysia was cross‑referenced with Honda Malaysia’s official website. This article was last updated on 26 March 2025.