Honda reshapes its electric vehicle (EV) roadmap as shifting market demand forces a rethink of its electric ambitions.
Honda Motor has announced a major reassessment of its electric vehicle strategy, leading to the cancellation of three previously planned EV models. The decision comes as the company adjusts its global electrification roadmap amid changing market conditions and slower-than-expected EV demand.
The cancelled models include the Honda 0 Saloon, Honda 0 SUV, and the Acura RSX EV. These vehicles were originally part of Honda’s ambitious 0 Series EV programme, which aimed at introducing a new generation of electric cars beginning in North America.
Honda said the move follows a broader review of its electrification investments and profitability outlook. The company has indicated that current EV market dynamics—particularly slowing demand in North America and increased competition in China—have influenced the strategic shift.
Honda expects losses of up to ¥2.5 trillion (around Rs 1.45 lakh crore) related to the reassessment of its EV strategy, including impairment charges and project cancellations. The automaker has also revised its financial outlook, forecasting a net loss between ¥420 billion and ¥690 billion (Rs 24,360 crore–Rs 40,019) for the current fiscal year.
Despite the cancellations, Honda confirmed that it will continue investing in electrified mobility while balancing development across hybrid, electric and next-generation technologies. The automaker expects the benefits of upcoming hybrid models and new vehicle launches to help restore profitability in the coming years.
Leave a Reply