Honda has announced that it will cancel the development and market launch of three electric vehicles that were planned for production in North America. The decision comes after the company reassessed its global electrification strategy amid evolving market conditions and declining EV demand in certain regions.
The three models affected by this move include the Honda 0 SUV, Honda 0 Saloon, and the Acura RSX electric models. According to Honda, launching these vehicles in the current business environment would likely lead to long-term financial losses, prompting the company to discontinue their development and production plans.
In its official statement, Honda said the decision was taken “as part of the reassessment of the company’s automobile electrification strategy due to various factors, including recent changes in the business environment.” The automaker also cited the slowdown in EV demand in the United States, policy shifts related to emission regulations, and increasing competition from new EV manufacturers, particularly those with strong software-defined vehicle capabilities.
As a result of the reassessment, Honda expects to record significant write-offs and impairment losses linked to the cancelled EV programmes and associated investments. The company estimates that the overall financial impact of these decisions could reach up to 2.5 trillion yen (Rs. 1.45 lakh crore), including operating expenses and special losses tied to development assets and investments.
Despite the setback in North America, Honda emphasised that its broader electrification strategy remains intact, with regional priorities being adjusted to reflect market potential. The company specifically highlighted India as a key growth market, where it plans to strengthen its model lineup and cost competitiveness.
Most importantly, Honda’s future EV roadmap for India remains firmly on track, with the Honda 0 Alpha electric model still slated for launch in 2027.
