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.

TOKYO -- Honda Motor will scale back its electrification strategy, lowering planned investment through the fiscal year ending March 2031 by 30% to 7 trillion yen ($48.5 billion), the automaker announced Tuesday.

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.