Honda scraps plans to make an electric SUV, in common theme across the industry

Honda has just pulled the plug on a large electric SUV that was supposed to launch in 2027 under its new 0 Series lineup.

The decision comes as part of a wider industry shift, with many carmakers quietly walking back once-ambitious EV targets.

With federal tax credits drying up and consumer interest cooling, Honda, like others, is choosing a more cautious route.

Instead of going all-in on electric, the Japanese automaker is putting its money on hybrids.

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The new Honda 0 Series will be scaled back

The canceled electric SUV was meant to be part of Honda’s new 0 Series lineup, which was introduced with much fanfare in 2024.

This sub-brand’s flagship sedan and mid-size SUV are still on track for a 2026 release, and reigning F1 World Champion Max Verstappen was recently spotted driving a prototype in Japan.

However, they might now be the only models in the series for quite a while.

Originally, Honda had planned to launch seven EVs by 2030 and invest roughly $69 billion into electrification.

That figure has now been trimmed to $48 billion, a sign of just how quickly the EV tide might be turning.

The move mirrors changes across the automotive landscape.

Ford dropped plans for a three-row electric SUV, Tesla shelved its long-hyped $25,000 model, and Nissan canceled two electric crossovers in the U.S.

Even performance brands like Lotus and Porsche are scaling back, with both pushing back their electric timelines, although some Porsche EVs currently outsell their gas counterparts.

The reasons are fairly consistent: EV production remains costly, charging infrastructure isn’t growing fast enough, and many buyers still prefer the familiarity and re-fueling speed of gas-powered cars.

Honda is going to shift its focus to hybrid vehicles

A key factor in Honda’s decision was the upcoming loss of federal EV tax credits, which could tack on as much as $7,500 to the cost of a new electric vehicle.

Building a car people can’t afford is a risk the company no longer wants to take.

Honda had even invested $1 billion to prepare its Ohio plant for the 0 Series models.

But with the market sending mixed signals and hybrids enjoying a resurgence, Honda is choosing to pivot now rather than pour resources into a gamble.

Looking ahead, the Japanese carmaker says it will roll out 13 new hybrid models between 2027 and 2031.

The company is essentially playing it safe: cutting emissions without fully relying on a consumer shift that may take much longer than expected.

However, while EV sales have stagnated within the US, it isn’t quite the same in many overseas markets.

Currently, 97 percent of new cars in Norway are EVs, while almost every car made in the UK is expected to be electric by 2035.

At the end of the day, it remains to be seen whether Honda’s pivot from EVs to hybrids will pay off.

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