Honda slammed the brakes on its EV push, and now it faces the prospect of being stuck at a development red light with not much new to show customers. After canceling several electric models, the company is staring down a product gap in North America that could stretch into 2027 and far beyond.

That’s a problem in a market where newness sells. Analysts say there may be no fully redesigned core models arriving next year, leaving Honda to rely on cars that are starting to feel a little long in the tooth.

More: Honda Went To China, Saw The Future, And Reached Back To The 1960s

The irony is that only a couple of months ago, Honda dealers were preparing for a massive influx of exciting new metal. Honda had gone all in on EVs, shifting engineers and resources away from traditional development. Then demand softened, policies shifted, and suddenly those future models didn’t make financial sense anymore.

So the company pulled the plug. That included the wild looking 0 Saloon, the 0 SUV, and even Acura’s planned RSX revival. Cool ideas, all gone, along with billions in investment. What’s left is the hangover. Development pipelines for gas powered cars have slowed, and the company is left trying to rebuild momentum while competitors keep rolling out fresh vehicles. Its first fresh vehicle will be a redesigned CR-V due in 2027, Nikkei Asia reports.

Rivals More Efficient

It’s not just about product timing either. Honda’s development efficiency has been under scrutiny for years, and the gap versus rivals like Toyota isn’t helping. Pricing pressure is another concern. In the US, Honda is already offering bigger incentives than some rivals to keep cars moving. If newer competitors arrive while Honda’s lineup stays largely unchanged, those discounts may have to climb even higher.

No New Cars But Plenty Of Bills

Financially, things don’t look much rosier. The EV retreat is expected to trigger massive losses, and not just in wasted development time and money. Nikkei Asia says the automaker could have to pay $10 billion to suppliers who were all geared up and ready to build parts for the cancelled electric cars. And there’s growing chatter that dividends could come under pressure if earnings don’t recover soon.

Honda insists it’s stabilizing things and focusing on hybrids while reorganizing development to speed things up again, and there’s even talk of potential collaboration with Nissan in North America. But nothing concrete has emerged yet, so don’t expect many new-model fireworks for a couple of years.

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