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Honda’s big bet on electrification has faltered, prompting the company to cancel several EV programs and postpone multiple model redesigns into the 2030s. Cancellations reportedly include the Acura RSX, Afeela 1, and Honda’s 0-series sedan and SUV, producing an estimated hit of ¥2.5 trillion (≈¥1087.3 billion CNY). To cut costs, Honda will extend current-generation production runs: a new Odyssey is delayed to March 2030, the Accord will be produced through March 2030 (with a possible hybrid-only
Honda is preparing to freeze its planned C$110 billion-equivalent (about $11 billion) electric-vehicle and battery factory project in Ontario, Canada, shifting North American strategy toward hybrids as U.S. EV demand softens. Announced in 2024 with a potential 2028 start and 240,000 annual EV capacity, the project was already delayed two years in 2025; Honda now says construction is paused indefinitely and it is negotiating with the Canadian government. Honda will halt production of the Prologue EV later this year and has canceled or suspended multiple North America-targeted EV models, reallocating Ohio production and a joint LG Energy battery plant toward hybrids and energy storage. The final outcome hinges on North American EV policy.
Honda has indefinitely paused plans to build an electric-vehicle plant in Canada, citing weak demand in the U.S. market. Japanese media reported May 6 that the EV factory—originally scheduled to start construction in 2028 and already delayed by two years—will no longer move forward for now. Honda had also planned an adjacent battery facility; together the projects were to involve C$15 billion (about US$11 billion) of investment. The suspension signals automakers’ caution on North American EV capacity amid softening sales and could affect supply chains, regional investment, and Canada’s EV industrial strategy.
Honda is negotiating with the Canadian government to indefinitely pause — or possibly cancel — a previously announced C$15 billion (about ¥75.5 billion) electric-vehicle and battery plant in Ontario. The plant, announced in April 2024 with a planned annual capacity of 240,000 vehicles, was already delayed two years in May 2025. Honda cites a policy-driven setback for EVs in North America: the US removed certain EV purchase tax credits and relaxed fuel-economy rules, strengthening hybrid competitiveness and weakening BEV economics. Honda also plans to end production of the all-electric Prologue developed with GM, underscoring automakers’ shifting EV strategies amid changing regulations. This could affect EV supply chains, regional investment and industrial policy planning.
Honda’s big bet on electrification has faltered, prompting the company to cancel several EV programs and postpone multiple model redesigns into the 2030s. Cancellations reportedly include the Acura RSX, Afeela 1, and Honda’s 0-series sedan and SUV, producing an estimated hit of ¥2.5 trillion (≈¥1087.3 billion CNY). To cut costs, Honda will extend current-generation production runs: a new Odyssey is delayed to March 2030, the Accord will be produced through March 2030 (with a possible hybrid-only future), and the HR-V’s fourth generation may not arrive until 2032. Acura models including Integra and MDX face similar multi-year delays, risking product-age fatigue. Honda confirmed the memo and reiterated plans to expand hybrid tech across its lineup.