Japan's well-known automotive Honda brand has reportedly ruled out plans for a bongsor electric SUV aimed at the US market, and will re-evaluate its electrification strategy.
Based on a report from Carscoops, quoted Tuesday, July 8, the decision was taken apparently related to the adoption of slow-down electric vehicles in the US, as well as a new tax bill passed under Trump's administration may also play a role, revoking major incentives for electric vehicles and making electric models less attractive to buyers aware of costs.
According to a report from Nikkei Asia, the cost of developing and procuring electric vehicles is much higher, mainly due to the size and cost of battery packages.
Honda appears to have concluded that the financial risk of launching a large electric vehicle in this (US) environment is not worth taking, especially with the model originally scheduled for debut in 2027.
The SUV, which is now canceled, is intended to complement a lineup of products that include medium-sized electric SUVs and sedans, both of which have appeared in near-production form, and are still expected to launch in 2026 as part of the Honda Series 0 concept.
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Drivers of hybrid vehicles
In May, Honda announced to reduce its investment in electric cars, and emphasized on the hybrid model. From 2027 to 2031 Honda intends to introduce 13 new generation hybrid vehicles worldwide with a target sale of 2.2 million hybrid units by 2030. This line of products will include a new major SUV designed specifically for the North American market, which can effectively replace the electricity version that is no longer produced.
The same move from other brands
Honda isn't the only car manufacturer to delay its EV plans. Nissan has canceled two EVs originally planned for production in the US, Ford has halted major EV development, while Toyota has delayed production of large electric SUVs from 2026 to 2028.
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