Honda’s EV Backtrack, Wholesale Prices Dip, Essential Side Hustles

Automotive State of The Union

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Episode #1048: Today we’re diving into Honda’s EV strategy rethink and dealer drama in California, a mid-May dip in wholesale used vehicle prices, and the growing reality that side hustles aren’t just extra—they’re essential.

• Honda is pumping the brakes on its aggressive EV strategy, cutting EV R&D investment by 30% and slashing its 2030 EV sales forecast by more than 1 million vehicles. Instead, hybrids are back in the spotlight.
  • Honda now expects just 700,000 to 750,000 EVs sold in 2030, down from 2 million.
  • EV R&D cut from ¥10T ($69B) to ¥7T ($48B); with 13 next-gen hybrid models to debut starting 2027 with improved fuel economy and cost.
  • “It has become increasingly clear that the environmental regulations... are becoming relaxed. I think the EV penetration period will be pushed back by about 5-6 years.” said CEO Toshihiro Mibe.
    • Meanwhile, California’s dealer association has issued a cease and desist letter to Sony Honda Mobility, challenging their direct-to-consumer sales strategy for the Afeela 1 EV.
    • American Honda claims no role in Sony Honda Mobility's sales plans.

• Wholesale used-vehicle prices dipped in the first half of May, giving back some of April’s unusually strong gains. The market shows signs of normalization, even as demand for used vehicles remains steady.
  • The Manheim Index fell to 205.9, down 1.1% from April but still up 4.4% YoY.
  • Three-year-old vehicles depreciated less than average, down just 0.6%.
  • Luxury and SUV segments led YoY gains; compact cars were the only group to decline.
  • EVs rose 2.0% YoY but saw a 2.0% drop vs April, steeper than non-EVs.
  • “As the tariff situation evolves and the frenzy of buying activity for new vehicles calms down, we expect wholesale pricing trends to remain more normal through Q2,” said Cox Automotive’s Jeremy Robb.

• Side hustles aren’t just a way to save for that vacation anymore—they’re becoming an economic necessity for many Americans. With living costs rising and economic uncertainty looming, millions are turning to extra work just to stay afloat.
  • 44% of Americans now report having a side hustle; 43% of them rely on it to pay for basic living expenses.
  • Bankrate data shows 71% earn under $500/month, with only 9% making over $2,000.
  • Top gigs include web design, video editing, ride-hailing, delivery driving, and even voiceover work.
  • Some are using side gigs to build AI-proof income streams in trades, tutoring, or specialized services.
  • NetCredit reports AI-based gigs on Fiverr average $44.50/day—low but growing fast.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
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