According to the company, the reason was growing losses related to tariffs in the US market and decreased competitiveness in Asia. The region has experienced increased pressure from Chinese manufacturers, who are bringing new models to market faster and actively developing software features for electric vehicles.
The development of all three models has been suspended globally, including in the US market. Previously, the launch of the Honda 0 Series Saloon sedan had already been postponed at least until 2027, but other vehicles in the lineup were planned to hit the market earlier.
The 0 series was supposed to become a completely new platform for electric vehicles developed by Honda itself. These models were not related to the Honda Prologue crossover, created jointly with General Motors, and did not share components with the brand’s Chinese versions. Production was planned to be organized in the US.
The project shutdown will lead to significant financial losses. According to the company’s estimates, the total effect of restructuring and asset write-offs could reach 1.2 trillion yen (about 15.7 billion dollars), including losses from downsizing the business in China.
However, some developments may still continue. The previously presented prototype Honda 0 Series Alpha is planned to be brought to mass production for certain markets, including India and some Asian countries.
In the coming years, Honda intends to focus on the development of hybrid models. The brand’s strategy in the fully electric vehicle segment remains undefined for now.
Source: Honda
