Honda has announced that it will cancel plans for three electric vehicles (EVs) originally intended for the North American market. The cancellation, which affects their development, production, and launch, is part of a broader strategy review that could see the Japanese carmaker tanking losses of up to USD15.7 billion/JPY1.12 trillion (approx. RM27.6 billion).
The cancelled lineup of EVs includes the 0 Series SUV, the 0 Series Sedan, and the Acura RSX (Honda Integra in our parts of the world) — the latter of which is essentially a reskin of the 0 Series SUV. The models were previously scheduled to arrive as early as this year, but the company stated that proceeding with the three vehicles would likely result in even greater losses in the long run.
These changes come as Honda cited a declining business environment. According to the company, unfavourable changes in U.S. tariff policies affecting petrol and hybrid vehicles, along with the easing of fossil fuel regulations and shifting EV incentives, have significantly slowed the growth of the EV market.
Honda also admitted that its competitiveness in Asia has declined, largely due to the allocation of more resources toward EV development, which has in turn impacted the competitiveness of its existing products.
In China, customers value software-based features that can continue improving according to changing customer preferences, instead of hardware features such as fuel efficiency and cabin space, according to Honda.
The company adds that the trend favours companies with shorter development cycles, especially those with strong expertise in software-defined vehicles (SDVs) and advanced driver-assistance systems (ADAS).
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Honda says its automobile business is now in an “extremely challenging earnings situation” as it failed to respond flexibly to the changes in the business environment. The company’s situation is further amplified by the decline in profitability of gasoline and hybrid models due to the new tariffs imposed by the US.
Looking forward, Honda says it may continue to incur losses for the “next fiscal year or later” due to the EV strategy reassessment. It states that it will work to get their products more cost-competitive and will continue to develop their next-generation hybrid models, reassessing the allocation of their resources.
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While the strategic realignment brings an end to the 0 Series EV models, Honda did not mention whether its other models will be affected. This suggests that the Honda Insight EV and the Afeela models should remain on track for their respective global launches.
In Malaysia, Honda has committed to introducing six new models in 2026, one of which is expected to be an EV. This forms part of the company’s plan to roll out three EVs by 2027, though it remains unclear whether the latest strategic realignment will affect those timelines.
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