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Chinese EVs, US tariffs, and sliding sales in Asia are to blame for Honda cancelling its upcoming 0 Series electric cars months before entering production.
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Honda has pulled the plug on three planned electric vehicles (EVs), copping around AU$22 billion in losses as it pivots its strategy.
The cancelled cars are production versions of the 0 Series Saloon and SUV – both set for production this year in North America for a 2027 launch – and the Acura RSX EV, which shares the same underpinnings.
Honda has previously announced plans to build the 0 Alpha small SUV, revealed last year, for India and Japan, but the latest announcement makes no mention of its future.
The impact on Australia, however, remains minimal, as Honda never confirmed these vehicles for local showrooms, and is instead entering the EV market with the Super-One city hatch on track to launch later this year.
"The niche Honda 0 Series Saloon and Honda 0 Series SUV models, which were under review, will no longer form part of the product portfolio following the program cancellation," a Honda Australia spokesperson told Drive.
"Honda Australia’s broad hybrid range will be complemented by the introduction of its first EV, Honda Super-One later in 2026.
"Honda’s long-term electrification strategy will see hybrid and EV models form its Australian product line-up in 2026 and beyond."
In a release, Honda Japan cited various changes in the automotive landscape that made the business case for the 0 Series EVs unviable for the US.
The first was modifications to US tariff policies that saw Japanese-built vehicles slugged with a 15 per cent tax, which came into effect in September 2025.
The brand has also admitted to “a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development”.
This means the pivot away from the 0 Series Saloon and SUV could see a renewed focus on Honda models in the region, such as the Fit (or Jazz), HR-V, Civic, and Accord.
The meteoric rise in Chinese EVs was also mentioned, with Honda stating “the rapid emergence of newer EV manufacturers that leverage their short product development cycles and strengths in the area of software-defined vehicle technologies” as a hurdle.
“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,” the brand said.
As a result, and to try and protect the profitability of the rest of the Honda business, the decision was made to cease 0 Series models “as part of the reassessment of the company’s automobile electrification strategy”.
While the 0 Series models will not make it to production in the US, Honda’s long-term goal of being carbon neutral by 2050 remains.
The decision comes months after Honda Motor Company director, president, and representative executive officer Toshihoro Mibe told media at the 2025 Tokyo motor show that “the EV market is slowing down – slower than we expected”.
“We are not scaling back on the development of our full battery EVs, it is just that we are saying compared to our initial forecasts, the value would have to be lower than what we envisaged,” Mibe-san said at the time.
“As far as passenger vehicles are concerned, battery EV is the optimum solution – that remains unchanged … we will continue to still look at EVs and continue to work on that.”
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Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
