Honda, a Japanese automaker, has decided to modify its production strategy for fuel cell modules in Moka City, Japan, in response to changes in the global hydrogen market. The company initially planned to achieve an annual capacity of 30,000 units by the end of fiscal 2028 but has now reduced the production capacity and delayed full-scale operations due to evolving global demand for hydrogen. This change means Honda no longer qualifies for a state subsidy from Japan's Ministry of Economy, Trade and Industry (METI). Despite this, Honda remains focused on hydrogen technology and carbon neutrality by 2050, aiming to apply its next-generation fuel cell module in various sectors like electric vehicles and heavy machinery. While the adjustment impacts the development of the integrated supply chain for clean technology in Japan, Honda continues to emphasize the importance of fuel cell production for its future portfolio. The company plans for a gradual implementation of the plant and aims to scale up production when market conditions are favorable, highlighting its commitment to the hydrogen energy ecosystem. Honda's strategic shift also aims to capitalize on new opportunities within the hydrogen business, positioning it as a priority growth area. This move reflects Honda's long-term vision and commitment to sustainability and innovation in the automotive industry.