Honda Cancels Large EV Project
Honda is officially scrapping plans for a large electric SUV that was previously scheduled to arrive in 2027. The move comes as slowing EV demand, regulatory uncertainty, and high production costs force automakers across the board to rethink their electrification strategies—stop me if you've heard this before.
Key Points
- The automaker has shelved its planned large electric SUV for the U.S. market, citing high development costs and weak demand.
- Honda is shifting focus to hybrids, aiming to launch 13 new models globally by 2031, including a large hybrid SUV for North America.
- Sluggish U.S. EV adoption, reduced tax incentives, and recent delays by rivals like Ford and Toyota have reshaped Honda’s electrification timeline.
According to a report by Nikkei, Honda’s decision stems from elevated cost challenges associated with developing large EVs, particularly when it comes to battery packs. Earlier this year, Ford CEO Jim Farley said, "the economics are unresolvable" for large electric vehicles. Now, the Japanese automaker seems to have come to the same conclusion.
Instead, Honda will stick with its previously announced mid-size electric offerings, including an SUV and sedan, which remain on track for a 2026 debut as part of the brand’s upcoming “0 Series” EV lineup. Both were previewed earlier this year in near-production form and are still key to Honda’s EV strategy in North America.
The cancellation of the large SUV program is a continuation of the shift in Honda’s long-term product planning strategy announced earlier this year. In May, the company announced it would reduce its electrification investment by nearly $21 billion, and in place of rapid EV development, Honda is now committing harder to next-gen hybrid models.
Between 2027 and 2031, Honda plans to launch 13 new hybrid vehicles globally, with the goal of selling 2.2 million hybrids annually by the end of the decade. This includes a new large hybrid SUV tailored specifically for the North American market, which could serve as a replacement for the abandoned all-electric version.
Although Honda’s first U.S.-market EV—the Prologue—posted a staggering 963% sales increase in early 2025 compared to the previous year, that growth was from a small base. With just over 16,000 units sold so far, the Prologue remains Honda’s lowest-volume vehicle in the U.S. lineup.
Honda’s decision echoes similar moves across the industry: Nissan has scrapped U.S.-bound EVs, Ford has paused development of larger electric vehicles, and Toyota has pushed back the timeline for its full-size electric SUV until 2028.
Honda still maintains its long-term goal of offering seven electrified vehicles in the U.S. by the end of the decade, but the product roadmap is likely to be less aggressive.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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How many $BILLIONS did they waste prepping to build an EV no one asked them to build? Meanwhile, the 200k mile trouble free Honda's are a thing of the past thanks to their CVT transmission. Just looked it up, they've "invested" $48 BILLION DOLLARS in the "0 EV" product line.