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.

The automaker cites a market slowdown as it cuts its planned investment, but a couple of futuristic EVs are still in the works.