Honda is canning its three upcoming EVs

Honda announced that it has made the decision to cancel the development and market launch of its three EV models that were originally planned for production in North America: The Honda 0 SUV, Honda 0 Saloon, and Acura RSX.

This decision was made as part of the reassessment of the brand's automobile electrification strategy due to various factors including recent changes in the business environment.

The brand also expects to record losses - said to be in the region of an estimated $15.7 billion - in its consolidated financial results for the fiscal year ending March 2026. This comes about as Honda highlighted the challenges faced from China, most notably a widening technological gap.

Expanding on this, Honda says that as Chinese customers shift what they value more in automobiles, from hardware features (fuel efficiency, cabin space, etc) to software-based features, this has intensified the competition due to the rapid emergence of newer EV manufacturers that leverage their short product development cycles and strengths in the area of software-defined vehicle technologies, including advanced driver-assistance systems (ADAS).

Thus, Honda's inability to respond flexibly to these changes in the business environment, compounded by a decline in the profitability of gasoline and hybrid models due to the impact of newly imposed tariffs, have resulted in the brand being unable to deliver products that offer value for money better than that of the "newer kids on the block".

To combat this, Honda has said that progress is being made in reorganising its strategic framework and reestablishing its competitive strengths. Regarding the North American market, Honda will reassess its resource allocations and further strengthen its hybrid models.

As for regional business, the brand will enhance its model lineup and cost competitiveness in certain countries, as well as introduce next gen hybrid models and reassess the allocation of its resources.

In preparation for the possibility of additional expenses and/or losses in the next fiscal year of later, Honda says it will maintain stable returns to shareholders by improving profitability of its automobile business with the enhancement of the lineup, as well as leverage the earning power and cash-generating capability of its motorcycle and financial services businesses.

The brand plans to share further details of the reestablishment of its mid- to long-term strategy for its automobile business at a press conference in May 2026.