Honda Cancels 3 U.S. EVs After $9.2 Billion Loss, Shifts to 15 New Hybrids

11 articles · Updated · Electrek · May 14

Honda said EV-related losses hit 1.45 trillion yen ($9.2 billion) in the year ended March 2026, driving its first annual loss since listing and forcing a sharper retreat from EV expansion.
The company blamed weak competitiveness against newer EV makers, scrapped three planned U.S. EVs, and now expects the broader pullback to cost 2.5 trillion yen ($15.7 billion), with most charges coming next fiscal year.
Starting next year, Honda will roll out a new hybrid system and platform, targeting more than 10% better fuel economy and over 30% lower system costs; 15 hybrid models are due globally by decade-end.
In North America, Honda will shift Ohio capacity from canceled EVs to hybrid and gasoline vehicles, convert part of its LG battery joint venture to hybrid-battery output, and keep its $15 billion Ontario EV plant suspended indefinitely.
Honda also dropped its 2040 gasoline-vehicle phaseout, replacing it with a broader 2050 carbon-neutral goal built around hybrids, EVs, carbon-neutral fuels and offset technologies.

After a historic $2.7 billion loss, is Honda's pivot from EVs to hybrids a brilliant recovery or a fatal misstep?

Does Honda scrapping its all-electric future signal a broader industry retreat from the global EV race?