Honda is the latest automaker to scale back its electric vehicle (EV) plans, with some of the money saved going to hybrid drivetrain development instead.
According to The Nikkei, Honda has reduced its spending on EV models due for launch by 2030 from ¥10 trillion (A$100 billion) to ¥7 trillion (A$70 billion).
This could be a reaction to the slower-than-expected rate of growth of EV adoption in many markets across the world, as well as the scrapping of the US$7500 federal tax rebate for EVs passed as part of US President Donald Trump’s One Big Beautiful Bill Act.
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One of the casualties from the budget cut is reportedly a three-row SUV aimed primarily at the North American market, and initially envisaged as a competitor to the Kia EV9 and Hyundai Ioniq 9.
Other manufacturers have also changed their large EV SUV plans, with Ford cancelling its large electric crossover, and Toyota USA delaying a similar model from 2026 to 2028. Nissan has also delayed its US-focussed Xterra electric SUV and its Infiniti sibling by a few years.
Despite trimming the EV budget by a third, there are still a number of EVs on Honda’s horizon. These include the radically styled 0 SUV and 0 Saloon (above) unveiled at this year’s Consumer Electronics Show in Las Vegas.
Honda is also jointly developing the Afeela 1 electric sedan with Sony. With a projected starting price just below US$90,000 (A$138,000), the Afeela 1 will be a competitor to the Lucid Air, and will likely sell in small numbers.
There’s also a city-friendly hatchback based on the Super EV Concept that will debut at this week’s Goodwood Festival of Speed. Around the size of a kei car, the Super EV looks to be a successor of sorts to the retro E hatch.
Earlier this month Honda officially ditched its goal of EVs accounting for 30 per cent of its global sales by 2030, and instead wants ride to the hybrid wave. To that end, the Japanese automaker has committed to launch 13 new hybrid models by 2027, including the upcoming Civic-based Prelude coupe.
By 2030, Honda expects to sell around 2.2 million hybrid models every year. For reference, the automaker sold 3.7 million cars of all stripes across the world last year.
For China, Honda has developed its own dedicated EV platform that’s currently used for a pair of SUVs, and the rather attractive Ye GT fastback (above). These are sold in addition to a clutch of HR-V based electric models.
Outside of China, though, Honda’s EV offerings are slim. There are no Honda EVs for sale in Australia, and in Europe just one model is available: the HR-V-based e:Ny1, while in the States the company offers the GM-built and engineered Honda Prologue and Acura ZDX.
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