Honda hits the brakes on its EV ambitions: 0 Series cancelled before launch
19/03/2026
Honda has officially cancelled three key electric models.
The Honda 0 SUV, Honda 0 Saloon and Acura RSX were meant to mark a new beginning. Instead, they now represent a costly reset, with potential losses climbing to ¥2.5 trillion (± €15 billion). And no, this is not just another model cancellation.
Not the end of EVs but a major strategic retreat
Let’s be clear: Honda is not abandoning electric vehicles entirely. But it is abandoning something far more important, its own EV foundation for North America. The cancelled models were supposed to introduce:
A new in-house EV platform
A distinct design language
A stronger focus on software and user experience
In short, the 0 Series was meant to be Honda’s true electric identity. That identity is now… on hold. Meanwhile, two key projects remain untouched:
The Honda Prologue, developed with GM, continues for now
The Afeela 1, part of the Sony Honda Mobility joint venture, is still on track for 2026 deliveries
Which tells you everything you need to know. Honda is stepping back from what it builds itself, while keeping what is externally supported alive.
The real story: Honda misread the market
The financial impact is massive:
¥820B – ¥1.12T operational losses
¥110B – ¥150B losses in China
Additional write-downs up to ¥570B
Total potential damage: ¥2.5T
But the numbers are not the most important part. The underlying issue is. Honda openly admits that:
EV demand in the US is growing slower than expected
Policy changes have reduced incentives
Import tariffs are hurting profitability
Chinese competitors are moving faster, especially in software
And perhaps most importantly: Honda wasn’t agile enough to react. That’s the real headline.
Hybrids: the comeback strategy nobody wants to admit
Instead of doubling down on EVs, Honda is shifting focus back to hybrids. Not as a long-term vision, but as a survival strategy.
Hybrids offer:
Better margins
Lower risk
Immediate scalability
In other words, they buy time. And right now, time is exactly what Honda needs.
AutoNext Take
This is bigger than Honda. This is a reality check for the entire industry. Because building EVs today isn’t just about hardware anymore:
It’s about software
It’s about ecosystems
It’s about speed
And that’s exactly where newer players (especially in China) are outperforming traditional manufacturers. What Honda is doing now isn’t failure. It’s correction, a painful one. But maybe a necessary one.
