Honda Motor Co. announced on March 12, 2026, the cancellation of three electric vehicles—the Honda 0 SUV, Honda 0 sedan, and Acura RSX—planned for production at its Ohio EV Hub, due to US policy shifts, tariffs, weak demand, and Chinese competition. The company revised its fiscal 2025 outlook to a net loss of 420-690 billion yen from a prior profit estimate, warning of a ¥2.5 trillion impairment charge.
Honda revealed the near-production forms of these in-house Zero platform EVs at CES 2025, distinct from its GM Ultium-based models like Prologue and ZDX. CEO Toshihiro Mibe stated the decision reflects a demand shift making EV profitability 'very difficult,' amid US elimination of federal EV tax credits, eased emissions standards, and trade tariffs slowing adoption.
In China, Honda cited inability to compete with rivals' rapid software-defined vehicles featuring advanced ADAS and shorter cycles, eroding its edge in efficiency and space.
Financially strained, Honda faces FY2025 (ending March 2026) losses estimated at 420-690 billion yen per its update, with reports citing up to 820 billion-1.12 trillion yen; the EV restructuring adds a 2.5 trillion yen ($15.7 billion) charge—its first public-era loss. CEO Mibe and EVP Noriya Kaihara will forgo 30% compensation for three months, others 20%.
Honda will redirect to next-gen hybrids, expand in India, and detail strategy in May, delaying EVs until viable. Hyundai, Kia, VW, Porsche, and Ford have similarly delayed US EV plans amid policy changes.
