Honda cancels 3 planned BEVs, to strengthen HEV lineup
In what can be considered as quite a shock in the global automotive industry, Honda has decided to cancel three battery electric vehicle (BEV) models that were planned for production.
Meeting the chopping block even before production starts are the Honda 0 SUV, Honda 0 saloon, and the Acura RSX, all of which were already previewed as concept vehicles, then as prototypes. In fact, we even got to see all of these in person at last year’s Japan Mobility Show (JMS).
The main reason? A reassessment of their electrification strategy.
Like many other automakers, Honda has made a big shift to developing BEVs, however, unfavorable changes in tariff policies in the United States, as well as a decline in their products’ competitiveness in Asia due to the impact of the allocation of more resources to BEV development.
On top of that, it’s also unable to compete in the Chinese market where customers put more value in software-based features that advance according to customer preferences, rather than fuel efficiency and cabin space. This has intensified competition due to the rapid emergence of newer BEV manufacturers that leverage their short product development cycles and strengths in the area of software-defined vehicle (SDV) technologies, including advanced driver-assistance systems (ADAS).
With the decision to axe its three BEV models under development, Honda expects additional expenses or losses to be incurred within the next fiscal year. Combined with the losses to be recorded in the current fiscal year, the total amount of losses is expected to be a maximum of 2.5-trillion yen.
It’s not the end of the world though as Honda also says that they are making progress in reorganizing their strategic framework and reestablishing competitive strengths. In light of the recent slowdown in the growth of the U.S. EV market, Honda says that it will reassess its resource allocations and further strengthen its hybrid models.
As for markets outside of Japan and the U.S., they will enhance their model lineup and cost competitiveness in India, where market expansion is expected, and enhance their competitiveness in other Asian markets by introducing next-generation hybrid models and reassessing the allocation of its resources.
Honda also isn’t completely pulling the plug on BEVs as they say that initiatives toward the future introduction of BEV models will be implemented flexibly from a long-term perspective, while monitoring the balance between profitability and market trends. The Honda 0α (Alpha), unveiled at the Japan Mobility Show 2025, also remains in development.
Honda is planning to announce details of the reestablishment of its mid- to long-term strategy for its automobile business at a press conference to be held in May this year.
