Honda has just announced it will pull back on three electric vehicles it had previously promised to produce. One of the main reasons for this decision is the drastic financial losses and waning public interest in EVs.
“We determined that starting production and sales of these three models in the current business environment, where the demand for EVs is declining significantly, would likely result in further losses over the long term,” the company said.
The affected EVs are the O Series SUV, the Funky O Series Sedan, and the Acura RSX. If they had gone through to production, these EVs would have been the first Honda had developed completely on its own. Other Honda EVs were developed in collaboration with General Motors.
A lot of work and plans were already underway with the cancelled EVs. The recently retooled Marysville plant in Ohio was to begin production of the first generation of the O Series this year, with the next set to come from Canada in 2028. However, all those plans have been paused, including a proposed battery plant in Alliston, Ontario.
According to the news release on Honda’s website, several factors led to this decision. America’s new import tariffs were already affecting its finances, coupled with slow sales in China. According to Honda, the 2026 financial year will end with an operating loss of up to $15.8 billion and year-end losses of $5.1 billion to $7 billion. Bringing three new EVs to market might not be in Honda’s best interest.
Going forward, the Japanese carmaker says it will return its focus to hybrids. Plans are already underway to update its hybrid lineup and the platforms it uses. The company says it will also use some batteries from its battery plant for storage purposes.
