As more automakers revise their EV plans in response to the realities of the market, Honda is also adjusting its electrification strategy. President and CEO Toshihiro Mibe recently announced significant changes to the company’s approach, including a sharp reduction in both its ambitious sales targets and, more importantly, its investment in electric vehicles.

More: Honda’s Future EVs Will Let You Pretend You’re Driving An NSX Or S2000 With Simulated Sounds And Shifts

Slower-than-expected EV adoption has been a key factor behind this shift. While Honda still sees electric vehicles as the best long-term path to carbon neutrality by 2050, the pace of adoption has not kept up with predictions. A combination of evolving environmental regulations and shifting trade policies has kept EVs from breaking through at the rate many hoped for.

Adjusted Expectations

Honda now predicts that EVs will make up less than 30% of its global sales by 2030. In response, the company is slashing its planned investment in electrification from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion) by 2031. Part of this reduction stems from the postponement of a major EV investment project in Canada.

More importantly, Honda is introducing a new mixed production system that can handle both EVs and HEVs, with the added flexibility to shift between different factories. This will be paired with a “resilient supply chain strategy” designed to make adjustments as needed, depending on market fluctuations in different regions.

Next-Generation Hybrids

With demand for hybrids expected to continue growing toward the end of the decade, Honda plans to introduce 13 next-generation HEV models globally between 2027 and 2031. These hybrids will sport the redesigned “H” emblem, which was previously reserved for EVs. The company aims to reach 2.2 million annual HEV sales by 2030, contributing to a broader sales increase beyond the projected 3.6 million units in 2025.

More: 2026 Honda Prelude Coupe Interior Revealed With Civic Vibes

Honda’s two-motor e:HEV hybrid system will also see improvements, offering enhanced efficiency and better packaging. A new all-wheel-drive (AWD) unit will further elevate performance. The next-generation hybrid system will be 30% cheaper to produce than the current version, making it a more cost-effective option for the company.

Big Plans for North America

Specifically for North America, Honda is developing a new hybrid system tailored for larger vehicles, with an emphasis on high performance and towing capabilities. This powertrain will debut in models set to launch in the next few years, including a large SUV. While the model isn’t named, we suspect that it could very well be a replacement for the Pilot.

Sophisticated ADAS

The company is also investing heavily in intelligent technologies like advanced driver-assistance systems (ADAS). Aiming to enhance the competitiveness of both EVs and HEVs, the next generation of Honda’s ADAS will offer a higher level of autonomy in both city and highway driving. These systems are expected to be launched around 2027 across a wide range of EVs and HEVs in North America and Japan.

Besides its own-developed next-gen ADAS, Honda will also work with Chinese startup Momenta Global Limited to develop systems tailored for all future Hondas that will launch in China.

Honda

In April of last year, Honda unveiled plans to invest CA$15 billion (US$11 billion) into a full-fledged electric vehicle supply chain in Canada, which would include an EV plant and a standalone battery facility in Ontario. Fast forward 12 months, and the auto industry is a very different landscape, thanks in part to Donald Trump’s return to the Oval Office. As a result, Honda is now pushing back its Canadian EV investments by “approximately” two years.

In a letter sent to Honda shareholders, the automaker attributed the delay to the current slowdown in EV demand. The company reassured investors that it’s keeping a close eye on market trends but stopped short of providing a specific timeline for when the project will get back on track.

Read: Honda Pours $11 Billion To Build EVs In Canada’s Biggest Auto Investment Ever

Honda’s CEO, Toshihiro Mibe, explained during a quarterly earnings press conference that the company will need to “observe what is happening” over the next two years before making any final decisions on the timing of the project. Meanwhile, Honda Canada spokesperson Ken Chiu told CTV News that there are no plans to cut production or jobs locally, despite the delays.

EV Sales Still Climbing, Just Not as Fast as Expected

While Honda claims the postponement is due to a slowdown in EV demand, the reality is that EV sales are still rising in both Canada and the US. In fact, battery-electric vehicles accounted for 11.4% of all new car sales in Canada last year, and 8.1% in the US. True, demand hasn’t accelerated as rapidly as many hoped, prompting automakers to reconsider their EV strategies, but it’s not as though EVs are suddenly unpopular.

A Delayed Investment with Major Implications

Honda’s CA$15 billion commitment was previously hailed by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” The plan called for a battery plant with an annual capacity of 36 GWh and an EV assembly plant capable of producing up to 240,000 vehicles annually starting in 2028.

In light of the delays, Honda also confirmed it would shift some the CR-V production to its plant in Ohio to mitigate the impact of President Trump’s tariffs on the company’s operations.

“There is room to increase the production capacity in the United States, and we are trying to look into what will happen as a result of that,” Toshihiro Mibe added. “In the midterm, if the tariff measures are to be in place for a long time, then we will have to increase our production capacity in the United States.”

If the letters GT still make you think of big-power luxury coupes like the Bentley Continental GT, Honda’s new model of the same name might not exactly light your fire. But if you love the idea of a sharp-looking affordable family EV with coupe aspirations and think too much screen is not enough, you’ll find plenty to like in the two Hondas revealed at this week’s Shanghai Auto Show.

The GAC Honda GT (seen here in red) and its Dongfeng Honda GT brother (blue) are fundamentally the same car. They’re built at the same factory in China for the Chinese market, but it’s easy to see how they could work in the US, too, if it wasn’t for the current tariff situation.

Related: Honda Takes On BYD With New Ye EV Brand, Shows SUVs And GT Concept

Both cars get an H logo (minus any backing badge) below their blacked-out hoods and the Honda name on the front doors. But while the Dongfeng goes for Lamborghini Revuelto-style Y-shaped DRLs and taillights, the GAC opts for two-deck front LEDs and keeps the rears on the level.

Camera-based door mirrors are also present, and the digital screens displaying those exterior images are just two of the six crammed into the hi-tech interior. The remaining four include a digital gauge pack mounted high on the dash, a traditional central touchscreen, a phone-shaped touchscreen below it – presumably for climate duties – and another screen on the passenger side of the car that’s much bigger and uglier than any other passenger displays we’ve seen.

More: Toyota’s New Electric Flagship Sedan Takes A Shot At Tesla Model S

The GTs are the second wave of Honda Ye EVs designed specifically for China. And while Honda hasn’t revealed any powertrain details, we can take a guess based on the first Ye cars, the S7 and P7 crossovers, which debuted in production form last year when the GT was still just a concept.

Those EVs make 268 hp (272 PS / 200 kW) in single-motor, RWD form, or 469 hp (476 PS / 350 kW) when equipped with dual motors and all-wheel drive. Some Chinese media reports claim the GTs will also get single and dual-motor variants, and the single-motor versions will have 50:50 weight distribution. Is the GT the kind of car you’d like to see Honda offer in Europe, Australia, and North America?

Images: Honda/GAC/Dongfeng

Buying a brand-new car is supposed to bring excitement, not the slow-burning dread of a major failure before the odometer even hits four digits. But for one unlucky Acura ZDX owner, that sense of new-car bliss barely lasted 400 miles (643 km). That’s when things went south.

A customer from Criswell Acura in Annapolis, Maryland, was informed their 2024 Acura ZDX needed an entirely new battery pack. Now the dealership itself is suing American Honda Motor Company in an effort to recover its losses from the ordeal.

More: New Lawsuit Might Force Ford To Change Mustang Mach-E Door Handles

According to the lawsuit, Criswell Acura purchased the ZDX wholesale for $69,207 in May 2024, then sold it to a customer shortly after. But just 400 miles into ownership, the new owner discovered that the electric SUV could no longer fully charge. Once the problem was reported, the dealership followed Acura’s recommendation and ordered a replacement battery pack. While the customer waited, the situation worsened. The ZDX eventually stopped charging altogether, and even the doors became inoperable.

One Fix Leads to Another

The dealership installed the new battery pack, but that wasn’t the end of the problems. After the install, a rear wheel sensor started playing up, and after being replaced, an error code still appeared. Acura’s tech line told the dealer to install a new harness from its inventory. Despite following these instructions, the error code remained, Auto News reports.

Criswell Acura claims that subsequent “requests for assistance from Honda have been virtually ignored. ” Nearly eight months later, the ZDX remains at the dealership, still undriveable. While the exact cause of the issues remains unknown, the dealer suspects the problems stem from the “result of bad design, manufacturer’s defect, installation, or pre-delivery damage.”

Under the terms of its dealer agreement, Honda is supposed to be responsible for any alleged manufacturing or design defects in Acura products. The lawsuit argues that this obligation hasn’t been met. The vehicle is “completely undriveable and unable to be repaired,” it states.

Criswell Acura is seeking damages for breach of contract and unjust enrichment. The dealer has been forced to take a total loss on the SUV, claims it has lost profits from the sale to a customer, paid licensing and registration fees, and incurred considerable repair costs.

The case highlights the potential risks dealers face as EVs become more complex, especially when support from the manufacturer falls short.

We bet you’ve never heard of Hon Hai Precision Industry Co. Chances are, though, that you’ve either heard or read about Foxconn, the Taiwanese tech giant that builds iPhones for Apple – and the former is its official name.

Another thing you’re probably aware of, if you’ve been paying any attention to car-related news, is that tech companies are not content with making smartphones and laptops anymore and are actively engaging in the automotive business now that EVs have taken off. Which, in a way, makes perfect sense as traditional automakers are trying to outdo each other by offering lots of advanced tech in their new vehicles.

Foxconn Ready To Build A Range Of EVs

Since customers are more interested in things like advanced infotainment systems and electrification sort of levels the playing field between newcomers and established players in the car game, the likes of Xiaomi, Huawei, and even Sony decided to take advantage of that.

Foxconn recently made headlines as one of the parties interested in Nissan, which is in serious trouble. The Japanese company though would rather get in bed with fellow manufacturer Honda, but the proposed merger eventually fell through.

Enter Jun Seki, a Foxconn top executive who also happens to be Nissan’s former COO after then CEO Carlos Ghosn was ousted from the company and prosecuted by Japanese authorities. Seki said that Foxconn already has what it takes to build a range of EVs. They will initially be manufactured in Taiwan and shipped around the world, but the company can also produce them locally to cater to each market’s demands.

US-Market EVs Will Be Built Locally

“It is right to make them in the market where they are sold”, Seki said according to Autonews. “But it is inefficient without a certain number of units, so we are making them in Taiwan now as a transitional measure.”

This is a wise strategy, especially when it comes to the US, which is the world’s second biggest market after China. With Trump’s new tariffs shaking up the industry and making imported cars pricier than ever, forcing a number of established brands to suspend their shipments as they scramble to formulate a new strategy, a newcomer with no customer base has no choice but to manufacture its vehicles locally if it wants to be competitive.

Foxconn already builds the Model C midsize crossover that’s sold its home market since December 2023 as the Luxgen N7. Its global expansion, though, will start with the Model B minivan that’ll be launched in Taiwan in the second half of the year and will be sold in Australia with the badges of a Japanese brand that’s believed to be Mitsubishi. However, in the fourth quarter it plans to import the Model C in the US for customers to try out, and in 2027 it will introduce the stylish Model D minivan.

Teaming Up With The Japanese Would Be Ideal

After the negotiations between Honda and Nissan ended, Foxconn reportedly proposed an alliance between itself, Honda, Nissan and Mitsubishi, touting its expertise in cutting-edge technology as a key advantage for the automakers’ future models.

Seki admitted that Foxconn is working with Mitsubishi, but wouldn’t elaborate on the matter. He did, however, state that Japanese brands make for great partners due to their focus on quality. “Japanese carmakers are careful planners, and we understand that but are also very fast,” Seki said. “We can do things faster while understanding Japanese prudence.”

Moreover, Seki made it clear that Foxconn won’t launch the EVs it will build under its own name. Rather, following the example of its electronics division, it will manufacture them for other brands, just like the iPhone, thus it won’t be seen as a competitor but a valuable partner.

Honda used CES to introduce the 0 SUV concept, and as the model is inching closer to production, a camouflaged prototype was recently shown at a Red Bull event in Japan. While it sports a familiar design, there are a handful of notable styling changes.

Starting up front, the road-going model has new headlights with familiar pixel-like accents. They’re joined by door-mounted mirrors as well as gloss black cladding with turn signals on the front fenders.

More: Honda’s 0 Saloon EV Looks Like A Lambo Gallardo Sedan From The Future

Elsewhere, there are larger flush-mounted door handles and a revised rear end. The latter now incorporates reverse lights and a third brake light.

The 0 SUV will ride on a new dedicated EV platform and, according to Honda, features a “spacious cabin with outstanding visibility and flexibility.” We can also expect advanced driver assistance systems and a digital user experience powered by the new ASIMO OS.

Honda hasn’t revealed many specifics, but has previously said the 0 Series will use a steer-by-wire system that enables “outstanding handling.” Production is slated to begin in Ohio next year and the crossover will eventually be offered in global markets, including Japan and Europe.

The 0 SUV will be followed by the 0 Saloon and it’s slated to be introduced in North America in late 2026. The sedan has a lot in common with the crossover, but sports a wedge-shaped design that aims to set it apart from other EVs on the market.

Honda is betting on automation and artificial intelligence to transform its EV production process in China, reducing its need for floor staff by a hefty 30%. While robots haven’t yet fully replaced human workers, the tech Honda is rolling out—along with similar efforts from companies like Mercedes-Benz, BMW, and Dongfeng—suggests a future that might not be so bright for blue-collar workers.

The Japanese automaker recently kicked off production of the all-electric Ye P7 with local joint venture partner Guangzhou Automobile Group. The factory in Guangzhou uses automated guided vehicles, or AGVs, to move important car components throughout the factory, including heavy battery packs. Traditionally, human workers are required to transport parts throughout the factory.

Read: Honda Wants To Crack China’s EV Market With New Ye P7 Dual-Motor Crossover

In an interview with Nikkei Asia, Honda revealed that it’s also using AI to fine-tune the welding process for the Ye P7. The goal? To “reduce fixed costs as much as possible.” The company sees “electrification as an opportunity to overhaul the way we produce vehicles”—a chance to reimagine everything from the ground up.

The Ye P7 is an important vehicle for Honda. In most Western markets, the Japanese car manufacturer has lagged behind many of its competitors in releasing battery-electric vehicles that appeal to the masses. Given that China has quickly become the world’s single largest EV market, the automaker cannot afford to fall behind the competition, or else it could see its Chinese sales dry up.

Much like the S7 introduced earlier this month and built with Dongfeng, the P7 has an 89.8 kWh battery pack, and base models feature a rear motor with 268 hp. A dual-motor version is also available, boasting a combined 469 hp. Rear-wheel drive models have a quoted range of 404 miles (650 km) while the all-wheel drive version can apparently travel up to 385 miles (620 km) between charges.

Honda had a tough year in China, with sales dropping 30.9% to 852,269 units in 2024. This marks the first time in nine years that the Japanese brand has sold fewer than 1 million cars in the country. The decline is partly attributed to increased competition from local companies and a reduced demand for internal combustion engine vehicles. In response, Honda plans to halve production at an engine plant in Guangdong province and shift its focus more aggressively toward EVs.

Last year, new energy vehicles in China —comprising BEVs, PHEVs, and FCEVs—accounted for roughly 40% of all new car sales, with BYD leading the charge. In 2024, BYD sold 3.83 million passenger cars in the country, all of which were either BEVs or PHEVs. This is 8.5 times the number of cars it sold locally in 2019, and its rapid growth is coming at the expense of market share from legacy brands like Honda.

Read: Honda S7 Is A $36,000 Electric SUV That’s Not For US

Due to strong demand for electrified vehicles, Honda will close a manufacturing line at the Dongfeng Honda Engine factory at the end of this month, Nikkei Asia reports. This move will halve the annual production capacity of its joint venture, reducing it from 520,000 units to around 260,000.

In January, it ended production at a joint venture plant with Guangzhou Automobile Group that had an annual capacity of 240,000 vehicles. These changes will lower Honda’s local production capacity from 1.49 million as of early 2024 to just 960,000 units. Local media understands the company is offering early retirement programs to workers at the plants impacted by the closures.

One of its most important new models launched in China is the all-electric S7. The compact SUV is a direct competitor to the Tesla Model Y, Onvo L60, and Zeekr 7X. It has been launched in two guises, both with 89.8 kWh battery packs and up to 404 miles of range. Local prices start at ¥259,900, which is a touch under $36,000. Honda is also working on two new EVs – a larger crossover known as the P7 and a sleek sedan that was previewed last year by the GT Concept.

It’s been eight months since Honda previewed its China-only Ye S7, and now the production version has officially arrived. As the Japanese brand continues its push upmarket in various regions, this all-electric SUV doesn’t try to compete with the bargain-bin electric crossovers flooding the market. Instead, it’s aiming for something a bit more premium, but still relatively affordable, at least by American standards. The S7 starts at ¥259,900, which comes to about $35,800.

More: Toyota’s $15,000 Electric SUV Gets 10,000 Orders In Just 60 Minutes In China

Interestingly, the production model has dropped the ‘Ye’ from its name and is simply called the S7. It’s no Lamborghini Urus, but for a Honda, it’s a surprisingly daring design. In fact, it stands out in a way that no other Honda sold in markets outside of China does, which will help it cut through the noise of China’s crowded car market. The S7 is the product of Honda’s joint venture with Dongfeng and is set to compete with the likes of the Tesla Model Y, the Onvo L60, and the Zeekr 7X.

Powertrains and Range Options

At its core, the S7 is built on a dedicated EV platform and comes equipped with an 89.8 kWh battery pack. The base model features a single electric motor that delivers a modest 268 horsepower (200 kW) to the rear wheels. While not exactly thrilling, that output should be more than enough for everyday driving, and the more affordable variant has a claimed range of 404 miles (650 km) on the Chinese CLTC cycle.

For those craving more performance, there’s a dual-motor, all-wheel-drive version. This ups the ante by adding a 201-horsepower (150 kW) motor to the front axle, pushing total output to a more impressive 469 hp (350 kW). While that extra power and weight decrease the range to 385 miles (620 km), it’s still more than sufficient for most drivers.

In terms of dimensions, the S7 is 4,750 mm (187.0 inches) long, 1,930 mm (75.98 inches) wide, and 1,625 mm (64.02 inches) tall, riding on a relatively large 2,930 mm (115.4 inches) wheelbase, with a minimum ground clearance of 193 mm (7.6 inches). This puts the S7 in the range of your average compact SUV for exterior dimensions, but with a wheelbase that’s closer to, or even longer than, that of many mid-size SUVs. For comparison, the Honda Pilot has a shorter 113.8-inch (2,891 mm) wheelbase.

Inside, the S7 leans heavily into tech and luxury. The centerpiece is a 12.8-inch portrait-oriented infotainment screen perched in the center of the dashboard. Just ahead of the driver, there’s a 9.9-inch digital instrument cluster, and gone are the traditional wing mirrors, replaced by cameras and screens mounted on the doors.

The cabin of the electric Honda also features twin glass roof panels for that open, airy feel, and if you’re an audiophile, you can opt for a 16-speaker Bose sound system with speakers in the front headrests. While the luxury touches are nice, they’re not exactly groundbreaking, but they should appeal to buyers looking for something a bit more refined in the electric SUV space.