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.

Honda’s two-motor e:HEV hybrid system will also see improvements, offering enhanced efficiency and better packaging. A new all-wheel-drive (AWD) unit will further elevate performance. The next-generation hybrid system will be 30% cheaper to produce than the current version, making it a more cost-effective option for the company.

Facing a fast-changing global auto industry, Honda is steering its future in a bold new direction. Recently, Toshihiro Mibe, the Global CEO of Honda Motor Co., unveiled a comprehensive realignment of the company’s automobile electrification strategy.