Originally aiming for EVs to comprise 30 per cent of its global vehicle sales by 2030, Honda has now abandoned that target. The company also trimmed its planned investment in electrification from 10 trillion yen (USD 69 billion) to 7 trillion yen (USD 48 billion) by the fiscal year ending 2031.

Last year, Honda announced it expected to move somewhere around 2 million EVs over the next two years. That projected figure now sits at around 700,000 to 750,000 units. According to Automotive News, hybrid sales could instead skyrocket to over 2 million during the same time frame.

The Honda Motor Company announced Tuesday it will cut back on its previous investment plan for electric vehicle technology in response to its disappointment in the growth of the EV market.

The Japanese carmaker plans to reduce its investment in electric vehicles by more than $20 billion in the coming years as EV demand growth slows.

The U.S. Senate is moving forward with an effort to block California's nation-leading standards for vehicle emissions.