Honda Motor said on Tuesday that it was scaling back its investment in electric vehicles given slowing demand and would be focusing on hybrids, now far more in favour, with a slew of revamped models.

Honda is shifting its strategic focus from electric vehicles (EVs) to hybrid vehicles in response to slowing demand for electric vehicles (EVs). The company announced a reduction in its planned investment for electrification and software through the 2030 business year to Y7tn ($48.

Honda announced on Tuesday that it will scale back its ambitious electric vehicle (EV) targets, citing slower-than-expected sales in the U.S. market. The Japanese automaker revealed that it would no longer aim for EVs to account for 30% of its global sales by 2030.