Honda Motor is indefinitely freezing construction of its C$15 billion ($11 billion USD) electric vehicle and battery plant in Ontario. The automaker cited a slowdown in U.S. consumer demand as the primary driver for the decision.
Honda will now prioritize hybrid vehicles for its North American strategy. The project was originally slated to begin operations in 2028 with an annual production capacity of 240,000 vehicles.
The decision mirrors a broader industry trend, as Ford, General Motors, and Stellantis have also paused major EV investments. Honda anticipates significant financial losses in fiscal 2026 related to this strategic overhaul.