Attributing the decision to President Donald Trump’s tariffs and escalating rivalry from Chinese EV firms, Honda has abandoned three electric vehicles it was preparing for the U.S. market.
On Thursday, Honda revealed that Trump’s levies have detrimentally impacted its petrol and hybrid vehicle segment, consequently leaving its entire automotive sector in a “highly difficult profitability outlook.”
Alongside its “incapacity to adapt agilely” to rivalry from China and decelerating expansion in the U.S. market, the firm declared its resolution to discontinue the Honda 0 SUV and 0 Saloon, initially showcased at the 2025 Consumer Electronics Show. The electric Acura RSX has also been shelved.
The Japanese car manufacturer stated its intention to “re-evaluate its assignment of assets and bolster its hybrid variants” within the U.S. market. The firm cautioned that these adjustments could incur expenses for Honda amounting to $15.7 billion.
Honda now adds to a growing roster of traditional car manufacturers that have rescinded projects for electric vehicles they had once intended to market in the U.S.
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