Honda Scraps Three EV Projects in North America, Faces Over $5 Billion Loss

Honda recently announced it is halting development and launch plans for three battery-electric vehicle (BEV) models originally slated for production in North America, citing shifting business conditions and a reassessment of its electrification strategy. The company’s internal combustion engine and hybrid vehicle businesses have come under pressure due to adjustments in U.S. tariff policies, while excessive investment in pure electric vehicle development has weakened its product competitiveness in Asian markets. Honda expects to report a substantial loss for the fiscal year ending March 2026, primarily driven by asset impairments, costs associated with canceled projects, and an overall decline in earnings. The automaker acknowledged it has failed to deliver EVs offering better value than those from emerging electric vehicle manufacturers, leaving it struggling amid intense competition. Honda plans to unveil a medium- to long-term restructuring strategy for its automotive business in May this year.