Honda has halted its large electric SUV project. The Japanese automaker has suspended development work on its seven-seat, five-meter-long electric SUV model, which it planned to launch in 2027 for the US market. According to information reported by Nikkei, the reasons behind this decision are political uncertainties in the US and the end of tax incentives for electric vehicles.

Honda is shelving its new electric SUV project

The US stood out as the main market for the model. However, the uncertainty created by the incentives that President Donald Trump repealed and will completely end at the end of September 2025 made it economically and strategically risky for Honda to continue the project. It is known that the company is reviewing its recent investments and reshaping its electric vehicle strategy.

Honda announced a new electric vehicle series called the “0 Series” to be offered to markets outside of China starting in 2026. This series was planned to consist of seven different models by 2030. The large SUV model, whose development process was halted, was positioned as the largest link in this series. The vehicle was specifically aimed at families looking for a large interior space and appealed to the large SUV segment in the US market.

The suspension of the electric SUV project is parallel to some decisions Honda has made before. The electric vehicle production center project, planned to be established in Canada in April 2024 and requiring an investment of billions of dollars, was also halted for similar reasons. Following this development, the company narrowed down its electric vehicle development strategy and began to focus more on hybrid models.

The company has not given up on all electric vehicle projects. Aside from the large SUV model, the electric flagship sedan and mid-size SUV development work continues. The prototypes of both models were introduced at the CES fair held in Las Vegas in January 2025. It was announced that these vehicles, which attract attention with their new designs, will offer a range of at least 480 kilometers and have been developed on a completely new electric vehicle platform.

This change in Honda’s electric vehicle strategy is directly related not only to fluctuations in demand in the market, but also to the changing economic and political balances on a global scale. The company continues to take more cautious steps in the coming period in order to remain flexible against such changes.