Honda has it is canceling three electric vehicles it was months from starting production on at its . The Honda 0 SUV, the Honda 0 sedan and the are all being wound down. The company showed off all three models, and touted them as in near-production form at . Unlike the and , which run on GM’s Ultium platform, the scrapped models were built on Honda’s own Zero platform and would have been its first fully in-house EVs.
Honda in part blamed the elimination of federal EV tax credits, eased fossil fuel regulations and US tariffs for the decision. The company said US demand for electric vehicles had slowed because of the policy changes. In China, it admitted it could not match the value offered by newer manufacturers building software-driven vehicles on shorter production cycles. CEO Toshihiro Mibe said at a press conference that the demand shift had made EV profitability “very difficult,” according to .
The company said it will redirect resources toward next-generation hybrids and only bring EVs to market when demand justifies it. It also shared plans to expand in India, where it expects the hybrid market to expand. Honda is not alone in pulling back from EV production, with brands like , , , and having all scrapped or delayed major US EV projects since shifted.
The total restructuring of its EV business could cost Honda up to 2.5 trillion yen ($15.7 billion), with the company set to lose money for the first time since going public in 1957. Mibe and Executive Vice President Noriya Kaihara will forgo 30 percent of their compensation for three months, with other senior executives giving up 20 percent. Honda said it plans to share a detailed long-term strategy at a press conference in May.
