by Honda Cancels Large Electric SUV for the US
Honda has halted the development of a large electric SUV for the US market, focusing instead on hybrid models which are in higher demand. However, a mid-size electric SUV and a sedan from the 0 Series are still planned to launch in the American market in 2026.
The decision is linked to the slow growth in popularity of electric vehicles in the US, as well as changes in tax legislation that have made EVs less attractive to buyers.
Development and production costs for large electric vehicles are significantly higher due to expensive batteries, so Honda decided not to take the risk
– the report states.
Strategy Shift: Hybrids Instead of EVs
The company has reduced its investment in electric vehicles from $69 billion to $48 billion, focusing on hybrids. By 2030, Honda plans to introduce 13 new hybrid models, including a large SUV for North America that could replace the canceled electric variant.
Although sales of Honda’s electric models in the US grew almost 10-fold in the first half of 2025, the total volume remains low – only 16,318 cars. This confirms the difficulty of promoting EVs in the market. By the way, it’s not just Honda revising its plans – Nissan, Ford, and other manufacturers are also delaying the launch of electric models.
Clearly, the transition to electric vehicles is proving more difficult than expected. Buyers still prefer hybrids, and manufacturers have to adapt to real demand, even if it means stepping back from ambitious electric plans.
