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.

Honda

It’s been a couple of weeks since Honda pulled the plug on plans to build the 0 Saloon, 0 SUV, and Acura RSX EVs in the US. However, not all of that investment is going to waste, as the smaller 0 α SUV has now been confirmed for production in India, with exports planned for other markets as well.

Last month, Honda began testing the all-electric SUV in India for the first time, putting it through a wide range of driving conditions. Engineers are also evaluating performance in extreme heat and monsoon environments, alongside testing its charging capabilities.

Read: New Honda 0 SUV Gets Real With Production Design

Deciding on Indian production is an obvious move for Honda. Having already poured billions of dollars investing too heavily in EVs, Honda will be eager to make the most of lower labor costs in India. It’s revealed that not only will the 0 α SUV be built and sold in India, but it will also be exported to its home market of Japan, among other “key markets”, though Honda won’t say which ones at this stage.

Deciding on Indian production is a logical move. After pouring billions into EV development with limited return, Honda will be keen to capitalize on lower labor costs. The plan now is for the 0 α SUV to be built and sold in India, while also being exported to Japan and other “key markets”, though the company has yet to specify which ones.

This Isn’t The American Model

The Honda 0 α SUV was unveiled as a concept in late 2025 and looks almost identical to the 0 SUV that had been destined for the US. However, the 0 α is smaller and designed to be more affordable. In a world where lots of SUVs look the same, the 0 α stands apart, largely due to its unusually tall rear end. Whether buyers will embrace the design remains an open question.

Developed under Honda’s new ‘Thin, Light, and Wise,’ approach, the Honda 0 α SUV will hit the market with a thin and lightweight battery pack, although capacity details are not yet known. Honda has also committed to mounting the batteries and power units as low as possible to reduce the center of gravity.

Honda says the new 0 α SUV will be introduced during the 2026-2027 financial year, likely launching first in India and Japan before expanding to other regions.

According to Honda, “The start of pan-India Public Road Verification testing is a key milestone in our electrification journey. India has unique driving and climate conditions, and it is important for us to test our electric vehicle thoroughly in real-world environments. This programme reflects Honda’s global engineering strengths combined with a strong focus on local customer needs, as we prepare to introduce an electric SUV that offers reliability, comfort, and ease of use.”

Honda’s electric future just got a whole lot less bright. The automaker has announced it’s scrapping three planned North American EVs that were supposed to spearhead its next big push as it rethinks its electrification plans against a backdrop of cooling global EV demand.

The three vehicles are Honda’s delightfully bonkers 0 Saloon and 0 SUV, and Acura’s upcoming RSX crossover, and axing them so late in the game means a ton of financial pain for Honda. The company says it is booking roughly 2.5 trillion yen ($15.7 billion) in expenses and losses due to the U-turn.

Related: Honda Walks Back Its EV Plans As Losses Spiral

Here’s what Honda told us in a statement:

“In order to improve the current earnings situation as early as possible, Honda considered various options; however, after careful consideration, the company made the decision to cancel the development and market launch of three EV models that had been planned for production in the U.S., namely the Honda 0 SUV, Honda 0 Saloon, and Acura RSX.

Honda determined that starting production and sales of these three models in current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term.”

Sedan Does Supercar

Of the trio, the 0 Saloon was the showstopper. It looked like someone fed a Lamborghini Gallardo and a minivan into the same blender. Honda had previously said it would launch in North America after the SUV, and just earlier this year reports said it had already slipped to 2027. Now it appears the delay has turned into a funeral.

The 0 SUV was the more realistic sibling, though still plenty wild from a design standpoint with its hunchback rear. It was an electric crossover SUV with a tall cabin, pixel style lighting and Honda’s new ASIMO OS. This was supposed to be the practical EV that actually paid the bills, and would probably have been the model seen most regularly on US roads.

RSX Revival Iced

But maybe it’s the loss of the Acura RSX that was due to enter production later this year that will sting the most. Acura had already shown a pre-production prototype of the coupe SUV, promising dual motors, all-wheel drive and a sportier feel than the GM-based ZDX that was recently dropped. The RSX was also going to revive a name made famous by an iconic driver-focused Acura of yesteryear, and even if it did so by turning a fondly remembered rev-happy coupe into yet another crossover, at least it was a seriously good looking crossover.

Honda’s change of heart isn’t just bad news for North American EV buyers either, it’s all bad for US workers. All three EVs were scheduled to be built in Ohio. We have reached out to Honda for confirmation and will update this story when we hear back.

Honda/Acura