Honda's Big Electric SUV Is Reportedly Dead

Motor 1

07-07-2025

There's been a noticeable shift in the automotive industry this year. Automakers are rethinking their roadmaps that had put them on a path toward full electrification. Electric vehicle adoption is slowing in the United States, and the federal tax incentives are set to disappear soon. That makes pouring billions of dollars into EV development even riskier for already strained auto companies, and that uncertainty is forcing some, like
Honda
, to pull the plug on developing some future models.
The automaker has reportedly canceled plans for a large electric SUV. It was supposed to launch in 2027, but according to a new report from
Nikkei Asia
, Honda has halted development on the model and slashed how much it plans to spend on EVs through 2030.
Photo by: Honda
According to the publication, Honda will cut EV-related funding from ¥10 trillion ($68.6 billion at today's exchange rate) to ¥7 trillion ($48.0 billion). However, it's still planning to launch the flagship electric sedan and midsize SUV EVs that it showcased earlier this year with the
0 Series concepts
(pictured above). They're scheduled to arrive next year.
Honda had plans to launch seven EVs by 2030, but it's unclear how many of those are still in development. The automaker is reportedly shifting its focus to building more hybrids, which are
already in development
for America.
The EV Pullback and the Combustion Comeback
In the last six to nine months, automotive companies have had an epiphany and realized their EV plans don't align with consumer demand. In November 2024,
Lotus canceled its proposal to go fully electric by 2028
. Instead, it will focus on hybrids, like Honda, and that's the direction many automakers are now heading.
Porsche also announced it would shift to
offering more hybrid options
, admitting it would not achieve its initial goal of 80 percent of its sales to be fully electric by 2030. However, the German brand said it would continue to expand its EV lineup. Nissan scrapped plans for a
small electric SUV
in January, and in April, Mini said it
wouldn't abandon gasoline engines
anytime soon.
Even
Volvo has admitted defeat
in achieving its EV plans.
And then there are the companies trying to keep the combustion engines alive. BMW said the combustion engine is its "
foundation
." Lamborghini is
hopeful that synthetic fuels will happen
, as its new V-8 can run on them without sacrificing performance. Mercedes-Benz is making a "
course correction
" to extend the life of its engines, and Audi has announced it will now
build gas engines for another 10 years
.
If 2025 has proven anything, it's that the auto industry is facing a massive upheaval, and automakers are scrambling to navigate an ever-changing landscape unlike anything they have ever seen. Competition from China on electric vehicles is putting Western automakers in a difficult position as EV adoption begins to falter elsewhere. Plans are changing, and that means some automakers are
closing the purse strings on EV investments
as things change.
Keeping Combustion Alive:
Alpine: 'The Combustion Engine Is Not the Enemy'
Here's How Japan's Automakers Will Keep Gas Engines Alive
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Source:
Nikkei Asia
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