Honda Cancels Three US-Built EV Models, Faces Potential $15.7 Billion Loss
Japanese automaker Honda has cancelled plans to launch three electric vehicle models in the United States only months before they were scheduled to enter production, a decision that could result in losses of up to $15.7 billion.
The cancelled models include the Honda 0 SUV, Honda 0 Saloon, and the Acura RSX. The company had previously announced that the vehicles would be produced in North America as part of its push to expand its electric vehicle lineup.
The scale of the write-down is expected to significantly affect the company’s finances and could lead to Honda posting its first annual loss as a publicly listed company in nearly 70 years.
Honda first unveiled plans for the 0-series electric vehicles during CES 2025, where it announced that production would begin in 2026. The Honda 0 SUV was expected to debut in the first half of the year, followed by the 0 Saloon later in 2026, with the United States serving as the initial market.
The Acura RSX was also scheduled for a late-2026 launch and was planned to be manufactured at the Marysville Auto Plant as part of Honda’s planned electric vehicle hub in Ohio. The facility had been expected to begin EV production in late 2025, starting with the RSX before adding the Honda 0-series models.
However, the company said shifting global market conditions forced it to rethink its strategy. Honda cited weakening demand for electric vehicles in the United States, intensifying competition in China, and the impact of newly introduced tariffs affecting the profitability of its gasoline and hybrid vehicles.
The automaker also acknowledged that it struggled to adapt quickly enough to changing customer expectations, particularly in China, where buyers are increasingly prioritising software-driven features and rapid product updates. Newer electric vehicle manufacturers in the region have been able to respond more quickly to those demands, giving them a competitive advantage.
Honda concluded that moving ahead with the three models under current conditions would likely increase long-term financial losses.
The decision follows earlier signs that the company was reassessing its EV roadmap. In July 2025, reports indicated that Honda had already halted development of a large electric SUV planned for 2027 and scaled back portions of its EV investment, although it maintained at the time that the 0-series models were still on track for launch.
Honda had also previously partnered with General Motors in 2022 to jointly develop affordable electric vehicles targeted for release in 2027. The collaboration had been expected to form a key pillar of Honda’s North American electrification strategy, but the partnership eventually dissolved.
According to Reuters, automakers worldwide have recorded more than $70 billion in EV-related write-downs over the past year as slowing demand in the United States, intense price competition in China, and a renewed focus on hybrid vehicles force companies to reconsider their electric vehicle timelines.
Honda now plans to shift greater attention toward next-generation hybrid vehicles, motorcycles and financial services, while preparing to present a revised medium- and long-term strategy in May.
Earlier plans had suggested the company was accelerating its entry into the electric vehicle market after years of lagging behind competitors. In early 2024, Honda signalled that it would introduce several zero-emission models in the United States, including the Honda Prologue and the Acura ZDX.
The latest cancellations, however, indicate a major recalibration of the company’s electrification strategy as global market dynamics continue to shift
