economy
March 16, 2026
Honda Abandons EV Models in the US, Expects Record Loss of $15.7 Billion
Japanese company Honda has officially confirmed that it is halting the development and planned launch of three key electric vehicle (EV) models that were to be produced in the United States, and the company is expected to record a record financial loss of approximately $15.7 billion after a dramatic strategic shift.
TL;DR
- Honda has canceled the development and planned launch of three key EV models for US production.
- The canceled models include the "0 Series Saloon," a new SUV from the series, and the "Acura RSX."
- The decision is attributed to a significant decrease in demand for electric vehicles and an unfavorable business environment.
- Honda anticipates a record financial loss of approximately $15.7 billion due to this strategic shift.
- Factors influencing the decision include changes in US policy, such as relaxed regulations for internal combustion engines and the removal of EV subsidies.
- New import and trade barriers have also negatively impacted the profitability of Honda's hybrid business, which was meant to fund EV transition.
- Honda is now shifting focus to strengthening its hybrid lineup and developing a new V6 hybrid powertrain.
- EV development is not entirely abandoned but has been postponed to the future, with a near-term focus on emerging markets like India.
- This failure is expected to lead to some senior officials returning part of their salaries and marks Honda's first annual loss in nearly 70 years.
- Investors await the Q1 2026 fiscal report to assess the effectiveness of the hybrid strategy in covering EV-related losses.