Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsHonda canceled development and planned U.S. launches of the Honda 0 SUV, Honda 0 Saloon and Acura RSX on March 12, 2026, saying current market conditions and its competitive and earnings position made proceeding likely to cause further long-term losses. The decision is a major retreat from its earlier EV launch plans, but Honda has not said it is ending all EV development.
Which Honda EVs were canceled?
Honda’s March 12, 2026 announcement canceled development and planned U.S. production and sales of three vehicles: the Honda 0 SUV, Honda 0 Saloon and Acura RSX. Honda described the move as part of a broader reassessment of its automobile electrification strategy, rather than a simple delay or renaming of the models. Honda’s announcement said that proceeding in the then-current business environment would likely result in further long-term losses.
The decision reversed the near-term direction Honda had presented in May 2025, when it described the 0 Series as a future pillar of its EV business and said its first-generation models were planned to reach the market the following year. Honda’s 2025 business briefing provides that earlier plan.
Why did Honda cancel the Zero Series launches?
Honda cited a combination of market, policy, cost and competitive pressures. These are the company’s stated reasons; Honda did not independently quantify each factor’s contribution to the cancellations.
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- Slower U.S. EV-market expansion: Honda pointed to a slowdown alongside policy changes, including revised incentives and eased regulations affecting fossil-fuel vehicles.
- Tariff pressure on other vehicles: Honda said newly imposed tariffs reduced the profitability of gasoline and hybrid models, worsening its overall automobile earnings position.
- Competitive challenges in Asia: Honda said allocating more resources to EV development had coincided with a decline in the competitiveness of its products in Asia.
- Faster-moving rivals in China: The company described competition from newer EV makers with shorter development cycles and strengths in software-defined vehicles and driver-assistance technology.
In its March release, Honda said its automobile business had fallen into an “extremely challenging earnings situation” amid these changes and its inability to respond flexibly enough to them. That is Honda’s characterization of its business, not an independent assessment. The company’s account appears in its March 2026 release and FY2026 annual filing.
What did Honda report about the financial impact?
The March announcement gave preliminary estimates, while Honda’s subsequent FY2026 filing reported figures for the fiscal year ended March 31, 2026. They have different periods and accounting scopes, so the later reported total should not be treated as a final tally against the earlier maximum estimate.
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| Figure | What it represents | Timing and qualification |
|---|---|---|
| Up to ¥2.5 trillion | Honda’s preliminary maximum estimate of total losses associated with its strategy reassessment | Estimate covering FY2026 and later periods, announced March 12, 2026; Honda said the actual amount could differ. Source |
| ¥1,047,918 million | EV-related losses and expenses across specified income-statement categories | Reported in Honda’s FY2026 annual filing for the year ended March 31, 2026. Source |
| ¥521,377 million | Impairment losses on non-financial assets, including assets connected to EV programs | Reported in Honda’s FY2026 annual filing for the year ended March 31, 2026. Source |
| ¥331,426 million | Losses on disposal of non-financial assets, including capitalized development costs for canceled North American EVs | Reported in Honda’s FY2026 annual filing for the year ended March 31, 2026. Source |
In March, Honda also estimated FY2026 operating expenses of ¥820 billion to ¥1.12 trillion, a share of losses from equity-method investments of ¥110 billion to ¥150 billion, and separate special losses of ¥340 billion to ¥570 billion in its non-consolidated results. The company said additional losses could arise in the next fiscal year or later. Those preliminary estimates and the ¥2.5 trillion maximum are detailed in the March announcement.
Honda’s annual filing said some impaired manufacturing and development assets could not practically be sold or repurposed. The company assessed those assets at zero fair value less disposal costs. The filing describes those accounting judgments.
What is Honda prioritizing instead?
Honda’s May 2026 business briefing put next-generation hybrids at the center of its near-term product plan. The company said it would begin launching next-generation hybrid models in 2027, with 15 global launches planned by the end of the fiscal year ending March 31, 2030. It also said it would shift excess capacity at its Ohio auto plants toward gasoline and hybrid vehicles and convert part of the EV battery lines at its LG Energy Solution joint venture to hybrid-battery production. These plans are set out in Honda’s May 2026 briefing summary.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Has Honda abandoned EVs altogether?
No. Honda’s March announcement says future EV introductions will be handled flexibly from a long-term perspective, with profitability and market trends taken into account. That leaves open the possibility of future EV launches; it does not promise a replacement timetable for the canceled models. The cancellation is best understood as a sharp reallocation toward hybrids in the near term, not evidence that Honda has permanently ended all EV work. Honda’s statement does not give a new launch date for these vehicles.
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- Formulated specifically for Honda HEV vehicles for motor cooling and clutch lubrication
- Honda HEVF Type 1.0 is the only HEV fluid approved by Honda for use in Honda vehicles
- Low-viscosity formulation provides cooling performance and helps improve fuel efficiency
- Specially developed to deliver excellent protection for Honda HEVs
- 2025-Present CR-V e:FCEV, 2023-Present CR-V E-CVT Trans(Hybrid), 2023-Present Accord E-CVT Trans (Hybrid)
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