- Honda has announced the cancellation of its radical new EVs just moths before they were set to launch.
- The 0 Saloon, 0 SUV and Acura RSX were all set to start production this year.
- Honda cites slowing demand for EVs in the US, regulation shifts and heavy Chinese competition for the decision.
Honda has announced the immediate cancellation of three major electric vehicle models - the 0 SUV, 0 Saloon, and Acura RSX - citing a cooling US market and significant financial pressures. The vehicles, which were due to enter production this year and in early 2026, have been axed after Honda determined that the current market climate would likely lead to "further losses over the long term".
The Japanese carmaker attributed the decision to slowing EV adoption in the USA, driven by the easing of fossil fuel regulations and the elimination of the US$7500 (NZ$12,800) federal tax credit in September 2025.
The company also said that its bottom line has been stressed by rising US tariffs and a decline in competitiveness in Asian markets, specifically in China, where Honda acknowledged it has struggled to match the "value for money" and rapid development cycles of newer EV manufacturers who excel in software-defined vehicles.
The cancelled models were centrepieces of Honda’s future strategy, with the 0 models featuring bold, futuristic designs, debuting at CES 2025. They were set to launch a new dedicated EV architecture, the Asimo operating system, and Level 3 semi-autonomous driving technology.
The RSX was to be a sleek coupe SUV-style vehicle that revived the name used on the Acura version of the Honda Integra in the US market between 2001 and 2006.
Production for the 0 vehicles and the RSX was scheduled for the company’s EV Motor Hub in Marysville, Ohio, with production of the 0 SUV due to begin in the first half of 2026 and the 0 Saloon and RSX scheduled to start before the end of the year. Both 0 vehicles were also confirmed for RHD production, while the RSX was also under consideration for sale in the Japanese market.
The cancellation comes as Honda faces a massive financial downturn, with the company revising its forecasts and now expecting a loss of up to ¥650 billion (NZ$7 billion) for the fiscal year ending March 2026, a sharp reversal from its original profit prediction. In response to the deficit, board members will take 20 to 30 per cent pay cuts, and senior executives will forgo performance-related bonuses.
Honda says that, looking ahead, it will refocus its energies on hybrid vehicles for the US and Asian markets, and while the flagship 0 Series and RSX are dead, it remains unclear if the smaller, more affordable 0 Alpha SUV - slated for production in India in 2027 - will be affected.
Also currently unclear is what effect the cancellation will have on Honda's joint venture with Sony, Afeela, which was said to utilise the Honda 0 platform and is due to start deliveries of its first car, the Afeela 1, in California sometime this year, and recently revealing an SUV prototype.
