Key highlights
- Honda 0 SUV and sedan cancelled
- Both models were scheduled to go into production soon
- US imposed unfavourable tariffs and regulations cited as the reason
Honda has made a jaw-dropping decision. The Japanese carmaker has announced that it has scrapped the launch of the 0 electric series SUV and sedan internationally. The reason behind the multi-billion-dollar loss is eyebrow-raising. Read below for all the details.
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Why has Honda scrapped the 0 Series SUV and sedan?
In a latest official announcement, Honda has revealed that it will not launch the 0 Series electric SUV and the sedan internationally. The 0 Series, which was initially meant for the US market, will not be economically feasible for the brand due to the current government’s policies on import and production.
After spending billions of dollars on the development, Honda was set to begin the production of the 0 Series models soon in the US. However, the EV policies that were favourable for Honda were made by the previous administration, and the current Trump administration has imposed hefty tariffs and rolled back incentives, which have led to an unfavourable impact on the future plans of the brand.
Honda said that starting the production and sales of the 0 Series models in the current scenario will lead to further losses. The brand stated that the EV demand is dying substantially in the international market, and with the current regulations in the US, it will end up making bigger losses.
With that said, the 0 Alpha SUV is still on track for the Indian market as it will be an in-house model, and it is destined to be manufactured in India itself. The brand has claimed that the write-off of the 0 Series models will result in a loss of 340-570 billion Yen. Moreover, the brand says that FY2026-2027 will witness further losses due to its decisions.
Meanwhile, another aspect behind this write-off is the increasing competition from Chinese EV makers. The SDVs (software-defined vehicles) are emerging at a rapid pace, to which Honda has been less flexible to adapt quickly. This is also a leading cause behind the brand’s write-off.
