Honda suspends plans to open electric vehicle plant in Canada

Tokyo - The Japanese vehicle manufacturer, Honda Motor Co., has suspended its plans to open an electric vehicle (EV) factory in Canada due to sluggish demand from the United States for such vehicles. Citing sources familiar with the matter, Japan’s Kyodo news agency reported on Wednesday that Honda had initially planned to invest $11 billion (Rp191 trillion) to build the EV factory and a battery production facility for those vehicles in Canada. Previously, Honda also cancelled production of three new electric vehicle models in North America. In 2025, Honda had decided to delay the start of electric vehicle production in Canada from 2028 to about two years later. Honda will provide details regarding the delay during the announcement of its 2025 fiscal report on 14 May, the source said. Due to changes in its electric vehicle strategy, Honda projects net losses between $2.6 billion (Rp45 trillion) and $4.4 billion (Rp76.5 trillion) for the year ending in March.