Honda is the latest automaker to scale back its electric vehicle ambitions in response to cooling demand—particularly in the U.S. market. The Japanese brand has confirmed the cancellation of its large electric SUV and is slowing down its overall EV rollout. Like many other manufacturers, Honda is feeling the impact of the recently passed “Big Beautiful Bill” from the Trump administration.
Like Ford, Honda has scrapped its large electric SUV
For now, only the midsize SUV and sedan from the 0 Series will go forward
Honda plans to shift its focus toward hybridization
Earlier this year, Honda outlined a 10-year roadmap with an emphasis on hybrids, signaling a more cautious approach to full electrification. The plan included three electric vehicles based on its 0 Series concept line, originally set to launch between 2027 and 2028. However, according to a new report from Nikkei Asia, one of those EVs has now been cancelled.
2025 Honda Serie 0 ConceptTrump-Era Policy Takes a Toll
The main reason for the decision, according to the report, is persistently weak demand for EVs in the United States. Compounding the issue is the new “Big Beautiful Bill,” which eliminates the $7,500 federal tax credit for qualifying new EVs after September 30, 2025. While only the full-size electric SUV has been shelved, the two other models—a midsize SUV and a sleek sedan previewed by the 0 Series—are still in the pipeline. The compact SUV is expected to debut in 2026, and Honda showcased it at the Japanese Grand Prix in April, although it has yet to be given a production name.
The large SUV was intended for the American market, where 60% of Honda’s sales come from high-riding vehicles. But the high development costs, combined with waning consumer interest, made the project financially uncertain.
Following in Others’ Footsteps
Honda’s move mirrors recent decisions by Ford and Toyota. Ford scrapped one of its own EV projects earlier this year, while Toyota has delayed the launch of its U.S.-built electric SUVs due to strong demand for the Grand Highlander. Toyota’s next EVs are now scheduled for release in 2026 and 2028. In the meantime, Korean brands Hyundai and Kia may have a clear path in the three-row midsize electric SUV segment.
Even before this announcement, Honda had already reduced its EV-related investments, scaling back from 10 trillion yen ($69 billion) to 7 trillion yen ($48 billion) through the end of the decade.
Hybridization Takes Priority
Honda will now shift more resources toward hybrid development. Its long-term strategy points toward full lineup electrification, with hybrid versions of the Pilot, Passport, and Odyssey likely on the horizon. These models are expected to drive sales and revenue in the near term while laying the groundwork for a future EV revival.
