Honda reportedly halts plans for large electric SUV

Honda has reportedly halted development of a large electric SUV as demand for electric cars in the US is expected to decline further. The US had been identified as the main sales market for the model, which was due to launch in 2027.

Symbolic image: Honda 0 SUV concept
Image: Honda

The decision to stop development of the large SUV planned for 2027 was influenced by weakening demand and potential further delays in its introduction due to political factors in the US, the company’s key market, according to Japanese newspaper Nikkei. This refers to EV subsidies that were ended by President Trump and will expire at the end of September 2025.

Honda had initially planned to launch a range of new electric vehicles from 2026, targeting markets outside China – where the Japanese carmaker’s joint ventures follow their own model strategy. By 2030, the new EV line-up, known as the ‘0 Series’, was to grow to seven models – including the seven-seater electric SUV planned for 2027, aimed at families and customers requiring substantial interior space. Such five-metre-class vehicles are particularly popular in the US. “Concerns about potential sales volume constraints could exert financial pressure on company operations,” Nikkei reported.

With the outlook for EV demand in the US now uncertain following recent political decisions, Honda has, as per the report, stopped the project for the large SUV model. However, even before the decision to end EV tax credits in the US, Honda had begun to scale back its electrification investments. In April 2024, the company paused its multi-billion-dollar investment plans to establish an EV hub in Canada, and only days later, it scaled down its entire development roadmap – with a shift in focus towards new hybrid models, which can be flexibly manufactured alongside EVs on the same production line.

According to the Nikkei report, Honda has only halted work on the seven-seater electric SUV for now. “However, Honda will proceed with introducing its flagship sedan and midsize SUV models, for which prototype vehicles have already been unveiled,” the article states. No information is provided on the other four models announced as part of the new EV line-up.

The prototypes mentioned were revealed at CES in Las Vegas in January 2025, including a wedge-shaped premium saloon and a mid-size SUV – both featuring striking design language. Honda did not provide technical details at the time, but stated the vehicles would be based on a new EV architecture with a range of at least 480 kilometres. Production was planned not in Japan but in the US – at the Honda Marysville Auto Plant in Ohio.

nikkei.com