Honda scraps Honda 0 and Acura RSX as EV losses mount

Honda has cancelled the development and planned market launch of three electric vehicles intended for North American production: the Honda 0 SUV, Honda 0 Saloon and Acura RSX. The automaker has revised its consolidated financial forecasts for the fiscal year ending March 2026 to reflect an operating loss, with total charges expected to reach up to 2.5 trillion yen, including write-offs and impairment charges on assets earmarked for the cancelled models.

The revised forecast projects an operating loss of between 270 billion yen and 570 billion yen, against a previously announced profit of 550 billion yen. Honda also expects to record a share of equity-method investment losses of between 110 billion yen and 150 billion yen, reflecting an impairment assessment on its China joint ventures in response to intensifying competition in that market.

Honda cited slowing EV demand in the US, the easing of fossil fuel regulations, revisions to EV incentives and the impact of new US tariff policies on its hybrid and petrol vehicle business as the primary drivers. In China, the company acknowledged a loss of competitiveness against domestic EV manufacturers with shorter product development cycles and stronger software capability.

The automaker said it will prioritise next-generation hybrid models and shift additional resources towards India, while pursuing a restructured fixed-cost base. A fuller outline of its revised mid- to long-term automobile strategy is planned for a press conference in May 2026. Several executive officers will voluntarily return a portion of their monthly compensation for three months in the next fiscal year, with the president and executive vice president also forfeiting their short-term performance-linked compensation for the current fiscal year.

Source: Honda