With sentiment to electric vehicles (EVs) cooling in the US and the prospect of on-going losses, Honda has decided to cancel the 0 SUV, 0 Saloon, and Acura RSX EVs even though they were due to go into production this year.
In a statement released overnight Honda said EV adoption in the USA had slowed down due to “easing of fossil fuel regulations and revisions to EV incentives”.
This refers to the Trump administration’s reduction in penalties for breaching the country’s CAFE fuel economy standards to zero, and its elimination in September 2025 of the US$7500 (A$10,500) federal tax credit for EV purchases.
The company said its bottom line was also also being stressed due to rising tariffs in the US, and a “decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development”.
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Honda also acknowledged that in China it has been “unable to deliver products that offer value for money better than that of newer EV manufacturers” due to their shorter development cycles, and strength in software-defined vehicles and advanced driver assistance systems.
Honda says after “careful consideration” it has decided to “cancel the development and market launch” of all three EVs as the cooling market would likely lead to “further losses over the long term”.
All three vehicles were to be produced at the company’s EV Motor Hub in its Marysville, Ohio plant. Production of the 0 SUV was due to start during the first half of 2026, with the 0 Saloon and Acura RSX scheduled to come on stream by the end of the year.
The 0 Series models were to be produced in right-hand drive, with Honda Australia officially putting up its hand for both vehicles last year, although local timing had yet to be confirmed.
As recently as October 2025, Honda was investigating whether to make the Acura RSX in right-hand drive in order to offer it in Japan.
Both the 0 SUV and 0 Saloon garnered a lot of attention due to their otherworldly designs, which were revealed in near-production forms at CES 2025. Based on a new dedicated EV architecture, the 0 Series cars were also set to debut the Asimo operating system for the infotainment setup, and Level 3 semi-autonomous driving tech.
Reports indicated the 0 Series vehicles would be available in 180kW single-motor and 359kW dual-motor versions, with a nickel-manganese-cobalt (NMC) battery offering up to 480km of driving range.
It seems possible the decision to cancel the 0 Series and RSX now was partially driven by the fact the Japanese financial year concludes at the end of March. Although the company warns there may be “additional [cancellation] expenses or losses” coming in the next financial year due and beyond, it’s likely most of the costs will be swallowed in the current year.
Honda has revised its forecasts, and now expects to lose up to ¥650 billion (A$5.7 billion) for the year ending March 2026, whereas before it was predicting a profit of around ¥620 million (A$5.5 billion).
With the company swinging into the red, board members will take a 20 to 30 per cent pay cut for three months, and senior execs will forgo their short-term performance-related bonuses.
It’s unclear if today’s cancellation of the full-size 0 Series Saloon and SUV will affect the smaller and more affordable 0 Alpha SUV, which is due to enter production in India from 2027.
With the 0 Series and RSX now axed, Honda says it will focus its energies on hybrid vehicles for the US and Asian markets.