Honda has made a strategic shift by canceling development of a large electric SUV for the American market. This surprising decision comes despite growing EV competition and reflects changing market realities.
The Cancelled Project
The abandoned vehicle was planned as:
- A three-row electric SUV
- Built on Honda’s new e:Architecture platform
- Targeting 300+ miles of range
- Slated for 2026 release
Reasons Behind the Decision
Industry analysts cite several factors:
- Slowing demand for large EVs in U.S.
- High battery costs impacting profitability
- Stronger-than-expected hybrid sales
- Charging infrastructure challenges
Honda’s Revised EV Strategy
| Original Plan | New Direction |
|---|---|
| 3 large EV models by 2026 | Focus on smaller, affordable EVs |
| Dedicated EV platform | Shared architecture with GM |
| 40% EV sales by 2030 | Hybrid-heavy transition |
“The economics of large EVs simply don’t work for most mainstream buyers today. We’re seeing much stronger demand for our hybrid models and smaller electric vehicles.” — Honda spokesperson.
Market Context
This move reflects broader industry trends:
- Ford delaying $12 billion in EV investments
- GM postponing EV truck production
- Toyota continuing hybrid focus
What’s Next for Honda
The company will instead focus on:
- Affordable Prologue EV with GM
- Expanding hybrid lineup
- Solid-state battery development
Honda‘s strategic retreat from large EVs underscores the challenging economics of the current electric vehicle market. While the industry’s long-term electrification goals remain, automakers are becoming more pragmatic about the transition timeline and product mix.
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🚨 Hot Take: “Honda’s EV Cold Feet – Smart Move or Epic Fail?”
Wow, Honda… way to read the room after everyone’s already seated. You spent years hyping up your “electric future,” and now—poof—the big American EV SUV gets scrapped? I can almost hear the boardroom convo:
“Hey, remember how Ford’s scaling back EV trucks and Toyota’s laughing all the way to the hybrid bank? Let’s do that too!”
Here’s the tea:
Tesla’s Model X and Rivian R1S are dominating the large EV space.
Your Prologue collab with GM looks… cute, but is it enough?
Meanwhile, dealers are begging for more hybrids (and counting cash).
Bottom line: Either Honda’s playing 4D chess—or they just saw the $30,000 battery bill and noped out.