Honda Motor Co. Chief Executive Toshihiro Mibe called the decisions “a switch in the planned course,” while stressing the long-term shift toward electrification remained unchanged, just pushed back in time.

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.

Bucking the upward trend in EV sales, Honda says it will instead concentrate on hybrid vehicles, which naturally contribute to climate change.