With sentiment toward electric vehicles cooling in the U.S. and the prospect of continued losses, Honda has decided to cancel that 0 SUVs, 0 sedanAnd Acura RSX Electric vehicles, although they should go into production later this year.
In a statement released overnight, Honda said electric vehicle adoption in the US had slowed due to the “easing of fossil fuel regulations and overhaul of electric vehicle incentives,” citing the Trump administration’s reduction of penalties for violations of the country’s CAFE fuel economy standards to zero and the elimination of the US$7,500 (A$10,500) federal tax credit for electric vehicle purchases in September 2025.
The company said its bottom line was also under pressure due to rising tariffs in the U.S. and a “decline in the competitiveness of Honda products in Asia due to the impact of allocating additional resources to electric vehicle development.”
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Honda also acknowledged that in China, due to shorter development cycles and strength in software-defined vehicles and advanced driver assistance systems, it was “unable to deliver products with better value for money than those of newer electric vehicle manufacturers.”
Honda says after “careful consideration” it has decided to “discontinue the development and launch” of all three electric vehicles because the cooling market would likely result in “further losses in the long term.”
All three vehicles were to be produced at the company’s EV Motor Hub at its plant in Marysville, Ohio. Production of the 0 SUV should begin in the first half of 2026, with the 0 sedan and Acura RSX expected to enter service by the end of the year.
The 0-Series models were set to be produced in right-hand drive, with Honda Australia officially offering its hand on both vehicles last year, although local timing has not yet been confirmed.
As recently as October 2025, Honda was investigating whether the Acura RSX should be manufactured in right-hand drive to be offered in Japan.
Both the SUV 0 and Sedan 0 attracted a lot of attention due to their exceptional design, which was presented in near-production form at CES 2025. Based on a new dedicated EV architecture, the 0-series vehicles should also debut the Asimo operating system for the infotainment setup and Level 3 semi-autonomous driving technology.
According to reports, the 0-series vehicles would be available in 180kW single-motor and 359kW dual-motor versions, with a nickel-manganese-cobalt (NMC) battery offering a range of up to 480km.
It seems possible that the decision to cancel the 0-series and RSX now was partly due to the fact that the Japanese fiscal year ends at the end of March. Although the company warns that “additional (cancellation) costs or losses” may be incurred in the next financial year and beyond, it is likely that the majority of the costs will be absorbed in the current year.
Honda has revised its forecasts and now expects a loss of up to 650 billion yen (A$5.7 billion) for the year ending March 2026, compared to previously forecasting a profit of around 620 million yen (A$5.5 billion).
With the company sliding into the red, board members will take a 20 to 30 percent pay cut for three months and senior executives will forgo their short-term performance bonuses.
It is unclear whether today’s cancellation of the full-size 0 Series sedan and SUV will impact the smaller and cheaper 0 Alpha SUV, which is scheduled to go into production in India from 2027.
With the 0-Series and RSX now gone, Honda wants to focus its energy on hybrid vehicles for the US and Asian markets.
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