With this latest announcement, the Honda Prologue is the brand’s remaining battery-electric SUV (at least for now).
Over the past year, the landscape has shifted tremendously against electric vehicles, as automakers cancel much-hyped models left, right and center. Take Honda, which just announced a shift in its business plan, cancelling the 0 Series SUV, the 0 Series Saloon and the Acura RSX in one fell swoop. That means no new EVs in the immediate future, vague mid- to long-term plans, and the potential for massive financial losses in 2026 totaling as much as $15.8 billion (2.5 trillion yen).
Why is Honda canceling its three upcoming EVs? Although the automaker planned to build all of these models at its Marysville, Ohio manufacturing facility, it specifically blames shifting U.S. tariff policy and the loss of the $7,500 federal EV tax credit as major forces behind the decision. In its news release, it also pointed toward a “decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development.” Honda contends that, if it actually went through with these three launches, it would also lose money in the long term.
Honda is remarkably straightforward in its announcement, also staying that change in Chinese market tastes is also forcing the automaker to reevaluate its plans. It notes that customers value software-based features over more old-school priorities like fuel economy or cabin space, while also citing how competition from China-based Ev manufacturers has “intensified competition” in ways which Honda has failed to keep pace. “In a difficult competitive environment, Honda was unable to deliver the products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”
As far as the actual impact at the end of Honda’s current fiscal year, which ends March 31, we should have finalized numbers in a few weeks. As a result of its financial position, company executives are also taking 30% pay cuts over the next three months, and made changes to how it’s paying out dividends to shareholders for the fiscal year.
This news comes on the heels of an already shaky EV lineup. Acura canned the ZDX after a single model year, and the fortunes of its mainstream Honda Prologue counterpart aren’t looking rosy either. In North America, at least, this will likely result in a marked shift toward pushing SUVs and its hybrid lineup to boost its financial outlook, though it did vaguely note a “balanced” approach toward future electric car development as well.
“Initiatives toward the future introduction of EV models will be implemented flexibly from a long-term perspective, while monitoring the balance between profitability and market trends.” Honda further says it will establish a “fixed-cost structure appropriate for the scale” of future development, though it provided little more detail at this point.
While we’re obviously no longer getting these models, we may see some elements of models like the Acura RSX salvaged for future debuts, like the hybrid RDX.
