Honda's Big Electric SUV Is Reportedly Dead

 There's been a noticeable shift in the automotive industry this year. Automakers are rethinking their roadmaps that had put them on a path toward full electrification. Electric vehicle adoption is slowing in the United States, and the federal tax incentives are set to disappear soon. That makes pouring billions of dollars into EV development even riskier for already strained auto companies, and that uncertainty is forcing some, like Honda, to pull the plug on developing some future models.

The automaker has reportedly canceled plans for a large electric SUV. It was supposed to launch in 2027, but according to a new report from Nikkei Asia, Honda has halted development on the model and slashed how much it plans to spend on EVs through 2030.

According to the publication, Honda will cut EV-related funding from ¥10 trillion ($68.6 billion at today's exchange rate) to ¥7 trillion ($48.0 billion). However, it's still planning to launch the flagship electric sedan and midsize SUV EVs that it showcased earlier this year with the 0 Series concepts (pictured above). They're scheduled to arrive next year.

Honda had plans to launch seven EVs by 2030, but it's unclear how many of those are still in development. The automaker is reportedly shifting its focus to building more hybrids, which are already in development for America. 

The EV Pullback and the Combustion Comeback

In the last six to nine months, automotive companies have had an epiphany and realized their EV plans don't align with consumer demand. In November 2024, Lotus canceled its proposal to go fully electric by 2028. Instead, it will focus on hybrids, like Honda, and that's the direction many automakers are now heading.