Honda canceled three electric vehicle models planned for the U.S. market: the Honda 0 Saloon, Honda 0 SUV, and an Acura RSX crossover. The company cited declining EV demand, unfavorable U.S. tariffs, and intensifying competition as primary reasons for the shift. This move reflects a broader reassessment of electrification plans to improve profitability.
Honda expects to record losses and expenses totaling 2.5 trillion yen for the fiscal year ending March 2026. This financial impact equals approximately $15.7 billion. These costs result from the write-off of tangible and intangible assets from the canceled projects.
The automaker now plans to increase its focus on hybrid models to navigate challenging market conditions.