TOKYO — Honda Motor Co., Ltd. announced March 12 that it will cancel development and planned market launches for three electric vehicle models previously slated for production in North America as part of a broad reassessment of its automobile electrification strategy.
The canceled models include the Honda 0 SUV, Honda 0 Saloon and Acura RSX electric crossover, according to the company.
Honda said the decision was driven by significant changes in the global automotive business environment, including slower-than-expected growth in electric-vehicle demand in the United States, the impact of tariff policies on the profitability of gasoline and hybrid vehicles, and intensifying competition in key international markets.
As a result of the shift, Honda now expects to record substantial losses in its consolidated financial results for the fiscal year ending March 31, 2026. The company estimates total losses tied to restructuring and related factors could reach as much as 2.5 trillion yen, or roughly $15 billion to $16 billion.
Honda described its automobile business as facing “an extremely challenging earnings situation,” citing declining competitiveness in parts of Asia, including China, where rapid advancements by emerging electric-vehicle manufacturers have intensified pressure on established automakers.
The decision to cancel the three EV programs follows what the company said was careful consideration of long-term profitability. Honda determined that launching the vehicles in the current market environment, where EV demand growth has slowed, could lead to further financial losses.
Various financial and automotive industry reports have indicated the restructuring could contribute to Honda’s first annual net loss since becoming publicly traded in the mid-20th century, underscoring the scale of the company’s strategic realignment.
The canceled models had been tied to production planning in North America, including Honda’s manufacturing footprint in Ohio. Company officials have not yet detailed specific impacts on employment or production at its Marysville and East Liberty assembly plants or its Anna engine facility.
Honda said it will reassess resource allocations and place greater emphasis on hybrid vehicle development while continuing to pursue electrification from a longer-term perspective. The automaker plans to outline a revised mid- to long-term strategy for its automobile business at a press conference scheduled for May.
The company also announced voluntary compensation reductions for some executive officers following the revision to its financial outlook.
Honda’s move reflects a broader recalibration across the global automotive industry, as legacy manufacturers adjust electric-vehicle investment strategies amid evolving consumer demand, regulatory changes and increasing competition from newer EV producers.
