Starting in 2026, Honda will begin equipping its compact and midsize models with a new hybrid system that uses less fuel and revamps the engine, platform and vehicle control technology, the company said.

The slowdown in electric vehicle expansion comes as demand for gasoline-electric hybrids is growing, especially in North America, where Honda sells its best cars. As the next president of the United States, Donald Trump, plans to cut subsidies for electric vehicles, sales of electric vehicles in the United States may face a tougher environment.

While Honda aims to boost electric vehicle production to more than 2 million vehicles by 2030 and sell only electric and fuel cell vehicles by 2040, the company’s near-term goal is to boost hybrid vehicle sales in the United States, a move similar to rival Toyota Motor Corp.

Katsuto Hayashi, head of Honda Motor Operations, said: “Hybrid vehicles will act as a bridge until electric vehicles are fully available. “When you think of hybrid cars, you might think of the Toyota Prius, but I believe Honda can change that.” He added that Honda had no immediate plans to revise its research and development and investment strategies in line with Trump’s policies.

By using more shared car parts across models, Honda said it would be able to cut costs after 2027 and double gross profit per hybrid model produced at its U.S. plant.

Honda hasn’t disclosed specific fuel efficiency targets, but Koji Ninomiya, head of its vehicle development center, said the company aims to be “on par with or better than the best hybrid competitors.”

Honda also said it is focusing on electric vehicles in China, where foreign brands are struggling against competition from local electric car makers, but will also launch next-generation hybrid vehicles. Honda, meanwhile, said its 2030 hybrid vehicle sales target does not include sales in China.