Honda cancels upcoming 0 SUV, 0 Saloon, Acura RSX EV models

MANILA: Honda Motor Corporation Limited is cancelling the global launches of its 0 Saloon, 0 sport utility vehicle (SUV), and Acura RSX all-electric vehicles.

Initially due for a North American launch, the three Honda electric vehicles (EV) are now effectively dead in the water due to several key factors that urged the brand to “reassess its electrification strategy.” 

One is the difficulty of securing profitability in the United States due to the said country’s policy changes. The brand likewise cited the difficulty of catching up with Chinese-based EV brands, which have poured vast amounts of resources into developing high-tech software-defined vehicle (SDV) technologies. 

In the context of the US, Honda feels that it is no longer worth pursuing its EV strategy in the said region due to the Trump administration’s favorable stance when it comes to fossil fuels, as well as the end of the “Clean Vehicle Credit” incentive back in September 2025, which kept EV prices lower and thus more attractive to consumers. 

When it comes to competing in other markets, including China, Honda said that it will be “unable to deliver products that offer value for money,” at least when compared to newer EV manufacturers. As mentioned, these EV models are packed with advanced tech, which the Japanese brand says is a stark counterpoint to its focus on hardware features. 

Moreover, Honda cited these new EV manufacturers’ shorter product development cycles, which the brand has yet to imitate. 

Interestingly, the Honda 0 Series was also due to be launched in the Philippine market. The aforementioned was disclosed by Honda Cars Philippines Incorporated President Rie Miyake to Zigwheels Philippines at the 2025 Japan Mobility Show.

At the time, it was not indicated which 0 Series model would arrive in the Philippines, but with the sedan and SUV out of the way, the 0 Alpha might still make it. After all, Honda made no mention of whether this model was included in the cancellation. 

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Honda: facing record losses

Honda says the axing of the three EV models mentioned above might improve its current earnings situation. This is because the 0 SUV, 0 Saloon, along with the Acura RSX, are due to be made in the US, and continuing to do so in the current business environment will only result in losses over time. 

Regardless, Honda is already projecting “record losses” as the fiscal year ends in March 2026. 

A full report for the full fiscal year has yet to be published by the Minato-headquartered company, but it has already published some estimates. 

For starters, it is expecting up to ¥1.12 trillion (around P400 billion) in operating expenses. Its projected “special losses,” meanwhile, may rise up to ¥500 billion (P180 billion). 

Honda further stated that in the next fiscal year, it may even incur additional losses, as it has already invested resources in its now-canceled EV strategy. 

As previously reported, the company has already implemented major organizational and operational adjustments across its automotive, motorcycle, and power product divisions to combat the slump as early as possible. 

Some of the aforementioned include the consolidation of its research and development operations, the merging of several business units, and the integration of its motorcycle and power products operations. 

Key Honda executives have even volunteered to return up to 30 percent of their monthly compensation for the next fiscal year. Some of these executives include Honda Motor Corporation Limited President Toshihiro Mibe and the company's Executive Vice President and Representative Executive Officer Noriya Kaihara. 

Hybrids: the way forward for Honda

So, to remain competitive in the global market, Honda says it will focus more on hybrid models. According to the manufacturer, this will involve strengthening its current model lineup by introducing next-generation models with electrified powertrains. 

In connection with this, the company is already poised to introduce the Honda Prelude in the Philippines. Prior to that, however, it already rolled out the updated CR-V, which now has two e:hybrid electric vehicle (HEV) variants. 

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