Honda has announced that it will cancel the development and market launch of its 0 Saloon and 0 SUV electric vehicle models, along with the Acura RSX BEV for the United States, as the company reassesses its electrification strategy. The decision comes as Honda expects to record losses in its consolidated financial results for the
Honda has announced that it will cancel the development and market launch of its 0 Saloon and 0 SUV electric vehicle models, along with the Acura RSX BEV for the United States, as the company reassesses its electrification strategy.
The decision comes as Honda expects to record losses in its consolidated financial results for the fiscal year ending March 2026, citing an “extremely challenging earnings situation” and rapidly changing conditions in the automotive industry.
According to the company, proceeding with production and sales of the affected EV models in the current environment would likely lead to further long-term losses, prompting the decision to halt their introduction.
The 0 Saloon and 0 SUV were originally planned as part of Honda’s new 0 Series EV lineup, which was intended to introduce seven models globally by 2030. The two vehicles were still being showcased as recently as late last year alongside the 0 Alpha concept at the Japan Mobility Show 2025.
It is currently unclear whether development of the smaller 0 Alpha EV, which was intended for global markets, will proceed as planned.
Honda said that several factors had altered the outlook for electric vehicles, particularly in the United States. These include policy changes, revisions to EV incentives, and the easing of fossil fuel regulations, which have slowed the anticipated growth of the BEV market.
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The automaker also acknowledged that allocating significant resources to EV development had affected its competitiveness in Asia. At the same time, consumer expectations in markets such as China have shifted away from traditional hardware advantages like fuel efficiency and cabin space towards software-defined vehicle technologies and continuously evolving digital features.
Faced with newer EV manufacturers capable of shorter development cycles and stronger software capabilities, Honda said it had struggled to deliver products that could offer better value than emerging competitors.
In response, the company will reassess its resource allocation and strengthen its hybrid vehicle portfolio, a direction previously signalled by Honda president and representative executive officer Toshihiro Mibe.
Regionally, Honda plans to enhance its model lineup and cost competitiveness in India, where the company sees strong growth potential. Across the rest of Asia, the automaker will push the introduction of next-generation hybrid models as part of its revised strategy.
Honda said details of its updated mid- to long-term strategy for the automobile business will be announced in May 2026.
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