Honda Pulls the Plug on Three Planned US-Built EVs Here’s Why.
Honda is killing three of its electric models it had planned to build and sell in the United States, the latest sign of the auto industry’s backsliding on EVs as customer demand and corporate support for the technology wanes.
The Japanese automaker said in a statement that “the decision was made as part of a re-evaluation of the company’s electrification strategy due to various factors including recent changes in the business environment.”
Honda said the profit of its auto business is “currently declining due to 1) the negative impact of US tax changes on the gasoline and hybrid vehicle business and 2) the decrease in competitiveness of Honda products in Asia due to the impact of the allocation of additional resources to EV development.”
The news comes as US EV sales decline through 2025 amid the demise of federal tax credits for plug-in models and taxes placed on imported vehicles and parts. But there has been an increase in the rate of consideration of electric vehicles as drivers are unable to cope with the rising prices of cars and gas.
With that in mind, the USA TODAY Cars team took a look at why Honda is pulling the plug on several of its EV models.
Why is Honda killing its EVs?
Honda’s previous forays into electrification have not gone well.
The company launched its new Prelude hybrid-electric car in the fall of 2025, but initial sales of the model were poor.
The Japanese automaker reported sales of 174 Preludes in the first full month, compared to 7,323 sales of its Civic hybrid and 6,407 of its Accord hybrid sedans. The December transaction follows the sale of 30 Preludes in November after their initial launch.
Honda spokesman Andrew Quillin defended the Prelude’s initial sales, in a statement provided to USA TODAY that the company is “pleased to see the Prelude is already meeting our sales expectations even if it only gets 40% of our sales.”
Prelude’s sluggish sales came as overall EV sales declined.
Automakers are expected to sell 1,275,714 electric vehicles by 2025, enough to account for about 8% of US vehicle sales for the year, according to Cox Automotive. But the industry-wide EV sales number fell 2% to 1,301,441 electric vehicles sold by automakers in 2024.
Honda said in its March 12 statement that it “followed the adoption of EV with a firm determination that striving for carbon neutrality is a responsibility that Honda, as a manufacturer of mobility products, must fulfill in the future.” The company added that “in the US, the expansion of the EV market has slowed due to several factors including the disclosure of fossil fuel regulations and the revision of EV benefits.”
What other automakers are killing EVs?
Ford has announced plans to change its F-150 Lightning van from a fully electric vehicle to a hybrid vehicle known as an Extended Range Electric Vehicle (EREV).
Lamborghini also abandoned plans to develop fully electric cars at the end of the decade in favor of hybrid models.
The Italian automaker, a subsidiary of Volkswagen, has confirmed to USA TODAY that it is no longer pursuing its plan to build battery-powered vehicles by 2030 due to sluggish demand in the US.
Tesla plans to end production of its Model S electric car and Model X luxury electric SUV in the spring in favor of a robotics program, company CEO Elon Musk told investors on Tesla’s January 2026 earnings call.
This article first appeared in USA TODAY: Honda pulls the plug on three EVs planned for the US. Here is the reason.
Reporting by Keith Laing, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
