(Bloomberg) -- Honda Motor Co. launched an updated version of its Freed minivan in Japan, including a two-motor hybrid, which are gaining in popularity even as demand for pure electric cars slows. 

The new models have been made more spacious to accommodate six people easily. The Freed, which comes in both combustion engine and hybrid versions, is one of Honda’s top-selling models in the non-compact segment, and the automaker has set an annual sales target of 700,000 units. 

As of Thursday, Honda had received 24,000 orders for the new models since pre-orders opened in May, with hybrids — which start at around ¥2.9 million ($17,800) accounting for 85% of those. 

Some of world’s largest automakers, including Ford Motor Co., General Motors Co., Volkswagen AG and even Tesla Inc., have been dialing back their EV ambitions in recent months as hybrids gain in popularity. By 2030, Honda too aims to produce 2 million hybrids a year.

“Hybrids are regaining popularity in Japan and we aim to continue selling them to achieve our goal of carbon neutrality” by 2050, Noriyuki Takakura, Honda’s vice president of Japan operations, said at a press conference on Thursday. 

Honda has set a monthly sales target of 6,500 units for the newly launched Freed e:HEV AIR EX and Freed e:HEV CROSSSTAR hybrids. Honda accounts for 22% of the minivan segment in Japan. All up, it has sold 1.2 million units since the Freed was introduced in 2008, with hybrids more recently accounting for 56% of sales. 

Honda Chief Executive Officer Toshihiro Mibe last month said “hybrids are our original weapon and we will keep using that in our business,” adding the company will use cash flow from hybrids to fund the development of EVs.

Honda is trying to catch up with rivals in the global shift to EVs, and plans to spend C$15 billion ($11 billion) to build out its electric-vehicle supply chain in Canada.

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