Honda shelves three electric vehicle projects after first annual loss in 70 years

Honda has halted development on three upcoming electric vehicle (EV) models as the automaker navigates its first annual loss in nearly 70 years. The decision signals a strategic shift within the company to streamline resources and prioritize future technologies.

The affected projects included the Honda 0 Saloon sedan, the 0 SUV, and the Acura RSX. These vehicles were slated for production at Honda's EV Hub facility in Marysville, Ohio, with initial presentations occurring in 2024 and 2025. Honda's collaboration with General Motors on the Ultium platform concluded in July 2026, with related projects set to be dissolved by year-end.

Amid financial pressures, Honda is repurposing the Marysville plant to accommodate a wider range of powertrains. Originally designed exclusively for EVs, the facility will now be equipped for flexible production, allowing for the manufacturing of internal combustion engine, hybrid, and electric vehicles on shared assembly lines.

The company is concentrating its EV efforts on solid-state battery technology, aiming to improve charging times and energy efficiency. In June 2026, Honda announced a partnership with U.S.-based QuantumScape to advance solid-state lithium metal battery development. This focus is intended to position Honda for future competitiveness in the evolving EV market.

The move comes as Honda reported a net loss of approximately 18.3 billion yuan (423.9 billion yen) for its fiscal year 2026. This marks the first time since its 1957 listing on the Tokyo Stock Exchange that the company has recorded an annual deficit.