Jakarta \u2014 Honda Motor Co., Ltd.\u00a0has announced significant changes to\nits global electrification strategy. The Japanese automotive\nmanufacturer has decided to cancel the development and launch of three\nelectric vehicle (EV) models originally scheduled for production in\nNorth America.<\/p>\n
According to Global.honda on 13 March 2026, the company made this\ndecision following a comprehensive review of its electrification\nstrategy amid changing global business conditions.<\/p>\n
Following this decision, Honda also expects to record losses in its\nconsolidated financial report for the fiscal year ending March 2026.<\/p>\n
Despite US government policies promoting the acceleration of the\ntransition to electric vehicles, Honda had previously shifted its\nstrategy towards popularising EVs, particularly for small mobility\nvehicles such as passenger cars.<\/p>\n
In recent years, Honda has relied on stable revenue from petrol and\nhybrid vehicles to support EV development. The hybrid technology base\ndeveloped over many years, combined with its motorcycle business and\nfinancial services with a strong customer base, became the main pillars\nof this strategy.<\/p>\n
However, Honda\u2019s automotive business now faces significant pressure.\nProfitability has declined owing in part to changes in US tariff\npolicies that have impacted petrol and hybrid vehicles. Additionally,\nthe substantial allocation of resources towards EV development has\nreduced Honda\u2019s competitiveness in Asian markets.<\/p>\n
Meanwhile, in China, consumer preferences for vehicles have shifted.\nWhereas previously consumers emphasised hardware aspects such as fuel\nefficiency and cabin space, they now increasingly value software-based\nfeatures that can evolve according to user needs.<\/p>\n
This shift has triggered intensifying competition, particularly from\nnew EV manufacturers with faster product development cycles and\nadvantages in software-defined vehicle (SDV) technology, including\nadvanced driver assistance systems (ADAS).<\/p>\n
Facing this competitive environment, Honda acknowledges it cannot yet\ndeliver products with competitive value compared to new EV\nmanufacturers. This situation has further pressured the company\u2019s\ncompetitiveness in several major markets.<\/p>\n
To improve its financial condition, Honda has ultimately decided to\nhalt the development of the three EV models originally planned for North\nAmerican production: the Honda 0 SUV, Honda 0 Saloon, and Acura RSX.<\/p>\n
According to the company, commencing production and sales of these\nthree models amid slowing EV demand would risk incurring even greater\nlosses in the long term.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/honda-cancels-electric-vehicle-project-incurs-265-trillion-rupiah-loss-1773410280", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }