Honda incurs losses of hundreds of trillions following reversal of vehicle launch decision

Honda has incurred losses of 2.5 trillion yen, equivalent to approximately Rp265.4 trillion, following a global decision to abandon the launch of three electric vehicles, including the Honda 0 Saloon, 0 SUV, and the Acura RSX crossover.

CarsCoops reported on 12 March that the reversal has dampened Honda’s future prospects in the automotive sector. The three electric vehicles were intended to reinvigorate Honda’s presence in the North American automotive market.

According to Honda, forcing the sale of these three vehicles under current market conditions of weak demand would only worsen the company’s business situation in the region over the long term.

The Honda 0 was the most eye-catching of the three vehicles set to launch, resembling a fusion between a Lamborghini Gallardo and a minivan. Honda had previously announced its launch in North America, and earlier this year reports indicated the launch had been postponed until 2027. This delay now appears to have become permanent cancellation.

The 0 SUV is the more conventional counterpart, though still featuring bold design elements including a curved rear section. It is a high-cabin electric crossover SUV with pixel-style lighting and Honda’s new ASIMO OS operating system. This vehicle was intended to be a practical electric vehicle capable of generating significant profits and would likely have become one of the most frequently seen electric models on American roads.