Honda Scraps Three EV Models Before Production as It Resets Its Strategy
Latest news on WhatsApp أجدد الأخبار على واتسابHonda has cancelled the development and planned launch of three electric vehicle models that were set for production in North America, marking a major retreat from part of its EV rollout and signaling a broader reset of its electrification strategy.
The company said the cancelled models are the Honda 0 SUV, Honda 0 Saloon, and Acura RSX, and linked the move to changes in the business environment and weakening EV demand. ntinuing with production and sales of the three models under current market conditions would likely have created additional long-term losses. As a result, it will record write-offs and impairment losses tied to assets intended for those vehicles, as well as additional expenses related to the cancellation of their development and market launch.
The company has already revised its financial outlook for the fiscal year ending in March 2026. impact is significant. Reuters reported that Honda expects EV-related restructuring costs of as much as 2.5 trillion yen, or about $15.7 billion, putting the automaker on track for its first annual loss since listing in 1957. Analysts told Reuters the shock was not simply that Honda was under EV pressure, but that it chose to cancel a U.S. production program so late in the cycle, after major development and investment commitments had already been made.
does not mean Honda is abandoning electrification altogether, but it does show a clear near-term pivot toward hybrids, especially in the United States. Reuters reported that battery-electric vehicles accounted for only about 2.5% of Honda’s global sales last year, reinforcing the gap between the company’s earlier EV ambitions and actual market uptake. o matters in Canada. In May 2025, Honda said it would put its Ontario EV supply chain plan on hold for about two years, an earlier sign that softer EV demand and trade uncertainty in North America were already forcing a rethink. Seen in that context, the cancellation of the three planned models is less an isolated decision than part of a wider retrenchment from a much more aggressive EV expansion path. Scraps Three EV Models Before Production
