Honda cancels three planned EVs for the US Market
Honda has officially halted the development and launch of three electric models originally planned for the US market. These include a luxury saloon and a mid-sized SUV from the ‘0 Series’, whose prototypes were first unveiled at the CES in Las Vegas in early 2025. The SUV coupé RSX from the performance brand Acura, scheduled for market entry in the second half of 2026, is also affected.
This decision stems from a significant slowdown in the electric vehicle (EV) market in the US, driven by relaxed regulations for fossil fuels and changes to EV purchase incentives. Key factors include the expiry of the US tax credit of 7,500 US dollars on 30 September 2025 and the relaxed emission standards for internal combustion engine vehicles introduced by the Trump administration. Honda also cited the negative impact of US tariffs on internal combustion engine vehicles and hybrids on its business.
At the same time, the Japanese manufacturer acknowledged that it had underestimated developments in China, where car buyers’ priorities have shifted from hardware features such as fuel efficiency and interior space to software-based functions that continuously adapt to customer preferences.
In China, however, new battery-electric vehicle manufacturers with short product development cycles and strengths in software-defined vehicle (SDV) technologies – including advanced driver-assistance systems (ADAS) – are currently leading the market. “In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness,” Honda stated in its press release.
These factors, combined with the cancellation of the aforementioned models, have had serious financial repercussions. Honda expects billion-euro losses due to the shelving of the Honda 0 SUV, Honda 0 Saloon, and Acura RSX. Specifically, this involves write-offs on fixed assets and intangible assets amounting to 820 billion to 1.12 trillion yen, equivalent to approximately €4.5 to €6.1 billion euros. Including future costs associated with this strategic realignment, Honda estimates the total financial impact at up to 2.5 trillion yen (around €13.5 billion euros). As a result, Honda now anticipates a pre-tax loss of 310 to 610 million yen (€1.7 to €3.3 million euros) for the fiscal year ending 31 March 2026.
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