Honda has canceled development and planned market launches of three battery-electric vehicles: the Honda 0 SUV, Honda 0 Saloon, and Acura RSX. The company announced the decision on March 12, 2026, saying North American EV demand had fallen significantly and that it could not see a credible path to profitability under current conditions.
Honda estimates maximum total losses of up to ¥2.5 trillion related to the reassessment. The reversal also scales back the Ohio-centered EV plan Honda had presented as the foundation of its North American electrification strategy. In its place, Honda is prioritizing next-generation hybrids, with launches planned from 2027.
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What Honda canceled
Honda’s decision covers three planned battery-electric vehicles:
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- Honda 0 SUV — an electric SUV from Honda’s flagship 0 Series.
- Honda 0 Saloon — the 0 Series electric sedan.
- Acura RSX — a planned Acura-branded electric vehicle.
Honda described the programs as having their development and market launches canceled. That is materially different from a delay. Unless Honda later announces a reversal, these vehicles should not be described as upcoming models expected to reach dealerships.
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The vehicles also were not established retail products. They were planned programs tied to Honda’s future North American manufacturing strategy, so there is no production-car performance, reliability record, pricing, or dealer availability to evaluate.
Why Honda says it canceled the EVs
Honda cited a combination of weaker demand, poor expected profitability, and a changed business environment. The company said electric-vehicle demand had declined significantly, particularly in North America, and that it could not see a credible path to making the three programs profitable under prevailing conditions.
Honda’s concern was not simply that the vehicles might sell more slowly than expected. It said moving into production and sales without a viable profit outlook could create additional long-term losses. The company also warned that launching a vehicle and discontinuing it early could inconvenience customers and damage the Honda brand.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchHonda linked its reassessment to newly imposed tariffs as well. In the company’s explanation, those tariffs were putting pressure on the profitability of gasoline and hybrid models, adding to the broader difficulty of allocating capital across its vehicle lineup. Honda did not attribute the cancellation to one individual competitor, consumer survey, or U.S. policy in isolation.
Honda estimates up to ¥2.5 trillion in losses
Honda estimated maximum total losses of up to ¥2.5 trillion in connection with the reassessment. That figure should not be read automatically as a final realized cash loss or as a single year’s reported operating loss.
The estimate includes several categories of exposure:
- Operating losses associated with the affected business plans;
- Losses from equity-method investments in China and other regions;
- Asset impairments and write-offs; and
- Costs related to canceling development and sales activities.
Honda said approximately ¥1.3 trillion would be added to its then-current fiscal-year forecast, with much of the remaining amount expected in the following fiscal year. Its financial materials also indicated that some future losses associated with supplier discussions and related negotiations could not yet be reasonably estimated.
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The practical meaning is that Honda is facing a large reassessment of investments and expected business results, not necessarily writing one ¥2.5 trillion check immediately. The final recognized amount can change as asset values, supplier negotiations, production decisions, and accounting treatment are finalized.
The canceled vehicles were part of a much larger Ohio EV plan
Honda’s three canceled programs were connected to an ambitious North American manufacturing strategy rather than being isolated design projects.
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In March 2023, Honda announced a $700 million retooling program involving three Ohio facilities:
| Facility | Role in the announced EV plan |
|---|---|
| Marysville Auto Plant | Vehicle production |
| East Liberty Auto Plant | Vehicle production |
| Anna Engine Plant | Battery-case and related component work |
Honda also announced a joint-venture battery facility with LG Energy Solution near Jeffersonville, Ohio. The battery project was intended to support EV production at the Ohio vehicle plants.
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Honda’s 0 Series strategy has been sharply reduced in North America
Honda introduced the 0 Series as the foundation of a broad global EV push. In 2024, the company said the series would eventually include seven models globally by 2030, with the first North American introductions planned for 2026.
The 0 SUV and 0 Saloon were expected to be the most visible North American products in that strategy. Their cancellation removes the two named Honda 0 Series vehicles that had been tied to the U.S. production plan in the research record.
Honda had also previously described a longer-term goal in which electric and fuel-cell vehicles would account for 100% of global vehicle sales by 2040. The March 2026 decision does not formally erase that global or long-term carbon-neutrality goal. It does, however, substantially reduce the near-term scope of Honda’s U.S.-oriented EV push and changes where the company is putting its money and factory capacity now.
Honda is shifting its near-term focus to hybrids
Honda’s 2026 business update says the company will redirect development and production resources toward hybrid vehicles. It plans to begin launching next-generation hybrid models in 2027, expand its hybrid lineup, and make all of its North American auto plants capable of producing hybrids.
Honda also says excess capacity at its Ohio auto plants will be directed toward internal-combustion-engine and hybrid production. That suggests the Ohio facilities are being repurposed rather than simply abandoned because the three EV programs were canceled.
This is best understood as a prioritization of hybrids, not proof that Honda has abandoned electrification worldwide. Hybrids give Honda a nearer-term way to pursue lower fuel consumption and meet customer demand while avoiding the cost structure and demand risk that the company associated with the canceled battery-electric programs.
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The trade-off is strategic: Honda’s near-term North American lineup will rely more heavily on combustion-hybrid technology, while the company’s all-electric ambitions move farther into the future or depend on programs that have not been canceled.
Do the cancellations include Honda’s other EVs?
Not based on the announcement covered here. The Honda 0 SUV, Honda 0 Saloon, and Acura RSX were the three named canceled programs. Honda’s existing EV relationships should not automatically be treated as the same projects.
For example, Honda and General Motors separately announced a two-vehicle collaboration using GM’s Ultium platform in 2020. That relationship is distinct from the Ohio-based 0 Series and Acura programs described in Honda’s 2023 and 2024 plans. The cancellation of the three vehicles does not, by itself, establish that every Honda EV sold through a separate partnership has been canceled.
AFEELA is related, but it is not one of the three canceled vehicles
AFEELA should be kept separate from Honda’s March 12 cancellation.
AFEELA was the Sony Honda Mobility joint-venture program. On March 25, 2026, Sony and Honda said that AFEELA 1 and a second AFEELA model would no longer be developed or launched. The companies said Honda’s March 12 electrification reassessment changed the assumptions behind the joint venture.
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Timeline of Honda’s North American EV reversal
| Date | Development |
|---|---|
| 2020 | Honda and General Motors announce a separate two-vehicle collaboration based on GM’s Ultium platform. |
| March 2023 | Honda announces the $700 million Ohio retooling plan and the battery joint venture near Jeffersonville. |
| 2024 | Honda describes a seven-model 0 Series rollout by 2030 and plans for the first North American introductions in 2026. |
| March 12, 2026 | Honda cancels development and market launches of the Honda 0 SUV, Honda 0 Saloon, and Acura RSX. |
| March 25, 2026 | Sony Honda Mobility says AFEELA 1 and its second model will no longer be developed or launched. |
| 2027 | Honda plans to begin launching next-generation hybrid models. |
What this means for Honda
Honda’s reversal has three immediate implications.
- Its North American EV pipeline is smaller. The company has removed three planned U.S.-production programs before they became retail vehicles.
- Its Ohio investment must be redirected. Honda plans to use available Ohio capacity for internal-combustion and hybrid production, while the extent of any remaining battery-facility or supplier commitments will depend on the reassessment and negotiations.
- Hybrids become the bridge technology. Honda is betting that next-generation hybrids can deliver a more defensible combination of demand, affordability, and profitability in the near term.
The cancellation is therefore a significant change in capital allocation and product timing. It is not evidence that Honda’s long-term electrification language has disappeared, but it is clear evidence that the company no longer considers these three North American EV programs economically supportable under current conditions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Bottom line
Honda has canceled the planned Honda 0 SUV, Honda 0 Saloon, and Acura RSX rather than merely postponing them. The company says weaker North American EV demand, an unattractive profitability outlook, changing operating conditions, and tariff-related pressure made continuing too risky. Honda estimates maximum total losses of up to ¥2.5 trillion tied to the reassessment.
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For now, Honda is redirecting its North American manufacturing capacity and development resources toward hybrids, with next-generation models planned from 2027. Its broader electrification ambitions remain on the books, but the U.S.-focused EV expansion that was supposed to be built around Ohio has been substantially scaled back.
Scope note: This article distinguishes Honda’s March 12, 2026 cancellation announcement, its subsequent business materials, and the later AFEELA announcement. The canceled vehicles were planned programs, not established retail models.
Frequently Asked Questions
Were the Honda 0 SUV, 0 Saloon, and Acura RSX merely delayed?
No. Honda described the three programs as having their development and market launches canceled. They should not be treated as delayed upcoming vehicles unless the company later reverses the decision.
Is Honda abandoning electric vehicles completely?
Honda has not abandoned electrification worldwide based on this decision. Its longer-term EV, fuel-cell, and carbon-neutrality goals remain part of its stated strategy. However, the company has sharply reduced the near-term scale of its North American EV plan and is prioritizing hybrids instead.
Is AFEELA one of Honda’s three canceled EVs?
No. AFEELA was the Sony Honda Mobility joint-venture program. Sony and Honda later said that AFEELA 1 and a second AFEELA model would no longer be developed or launched, but those vehicles were not among the three models named in Honda’s March 12 cancellation.
What will happen to Honda’s Ohio factories?
Honda says excess capacity at its Ohio auto plants will be directed toward internal-combustion-engine and hybrid production. It also plans to make all North American auto plants capable of producing hybrids and to launch next-generation hybrid models from 2027.
Is ¥2.5 trillion Honda’s final loss from the canceled EVs?
The ¥2.5 trillion figure is Honda’s maximum estimated total loss exposure connected with the reassessment. It includes operating losses, investment losses, impairments, write-offs, and cancellation-related costs. It should not automatically be described as a final realized cash loss or a single fiscal year’s reported loss.
The Bottom Line
Honda canceled development and planned launches of the 0 SUV, 0 Saloon, and Acura RSX. It cited weaker North American EV demand and the lack of a credible profitability path, and estimated maximum reassessment-related losses of up to ¥2.5 trillion. Honda is now prioritizing next-generation hybrids from 2027 and redirecting excess Ohio capacity toward hybrid and internal-combustion production.
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