Honda 0 Series is dead on arrival: Groundbreaking electric SUV and saloon cancelled due to lack of demand
Tough financials, slow-EV take up and cost of planned American production have killed Honda’s 0 Series models
Honda has confirmed that its dramatic 0 Series SUV and 0 Series saloon have been cancelled, with the company making the tough decision to write off as much as £11.7 billion of investment over two years.
Both were due to be built in the US, with the 0 Series SUV ready for global market release in late 2026, and the sleek saloon due the following year. But in light of significant headwinds, the plan has been brought to a complete halt.
Honda said its decision was based on a number of factors, including changing government policies, slow customer take-up of EVs and its own deteriorating financial position. A statement issued by the Japanese firm read: “This decision was made as part of the reassessment of the company’s automobile electrification strategy due to various factors, including recent changes in the business environment.
“The profitability of Honda automobile business is currently declining due primarily to the unfavorable impact of changes in US tariff policies on the gasoline and hybrid vehicle business, and a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development.”
Among these contributory factors, we suspect the compromised business case for building an electric car in the US was the ultimate reason for its demise. Not only have all American government grants and funding relating to anything considered ‘eco-friendly’ by President Trump’s administration been scrapped, but so have the US’s environmental standards, therefore reducing the need to go green.
US demand for EVs has been very slow to pick up, as is also the case in Japan – two of Honda’s key markets for the new generation of models. The result, Honda concluded, would lead to greater losses in the long run if the cars were to have reached full production.
In addition to this, Honda’s shrinking market share in Chinese markets has also proven to be a significant challenge, with the firm stating frankly: “In such a difficult competitive environment, Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness.”
One positive, though, is that Honda will continue with its 0 Alpha SUV that’s currently in development for Asian markets such as India and Japan. This suggests that the Series 0 ethos isn’t completely dead, only that the models – as we knew them – won’t come to fruition.
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