Honda’s electric future appears to get dimmer and dimmer, as it recently announced a sharp U-turn in its ambitious EV strategy in the face of an “extremely challenging earnings situation.”
With this sudden restructuring, the Japanese automaker has confirmed that the Honda 0 Series Saloon and SUV have been scrapped just months away from their debut, resulting in the company booking roughly JPY 2.5 trillion (RM61.74 billion) in expenses and losses due to the sudden U-turn.
Honda ‘0’ Series, US-Only Acura RSX EV Scrapped
From its original EV strategy, the Honda 0 Series lineup will feature up to seven models, with the 0 Saloon and SUV being the first two models to go into production later this year before this sudden U-turn came into the picture.
These futuristic EVs were supposed to debut Honda’s new bespoke electric platform developed from scratch, but the company said uncertainty and increased competitiveness in the global EV market have prompted their cancellation.
The wedge-shaped 0 Series Saloon was supposed to go on sale first, followed by the less radical 0 SUV, which was touted as the all-electric successor to the Honda CR-V during its first global preview last year.
Besides this radical EV duo, Honda also decides to scrap the upcoming Acura RSX, which has been reborn into an all-electric crossover bound for the US market. Acura had already shown a pre-production prototype of the model last year, promising a dual-motor all-wheel-drive (AWD) EV with a sportier feel than other Acura EVs.
Heavy Financial Toll for Honda
As mentioned earlier, Honda’s sudden decision to axe its 0 Series EVs may have cost the company a rather huge chunk of losses, with expenses and losses due to this cancellation amounting to roughly JPY 2.5 trillion (RM61.74 billion), at least for now.
That is because the automaker has warned that further losses in the next 2026-27 financial year are expected to result from this move.
Explaining this decision, Honda explained the major changes in the US due to the Trump administration’s decision to roll back several legislation made by the previous administration that carry an “unfavourable impact” on its business.
Honda has also struggled in Asia, where there has been a “decline in the competitiveness of Honda products,” which was also reflected in Honda Malaysia’s declining sales performance last year, with only 72,301 units sold compared to 81,600 units back in 2024.
The company explained that consumers now gravitate towards “software-based features” rather than hardware features such as fuel efficiency and cabin space. With new EV automakers from China that “leverage their short product development cycles” to shift focus quickly depending on demands, Honda is now at a disadvantageous position in said region.
