At the company’s annual business briefing in Tokyo on May 20, Honda CEO Toshihiro Mibe revealed plans to erase nearly 30% of its original multi-trillion-Yen investments, dialing down its EV and software research and development budget from ten trillion yen (~$68.97 billion) to seven trillion yen (~$48.28 billion).

Honda says electric vehicle sales were slowing in the U.S., prompting the Japanese automaker to scrap its previous goal of having EVs reach 30% of its global vehicle sales by 2030

Honda aims to sell 2.2 million hybrids a year by the end of the decade and is reducing EV investment amid slowing consumer demand.