Honda's Large Electric SUV Cancelled after Billions Cut Out of Electric Car Development

Honda has reduced their electric vehicle development funding by 3 Trillion Yen (approximately $31.4 Billion AUD) and has all but cancelled plans for a large electric SUV. 

This decision comes amid the backdrop of slowing EV sales and the signing into law of the Big, Beautiful Bill in the United States which sees the $7,500 in federal tax credits that came with new EVs fall by the wayside. 

Immediately finding itself on the chopping block as a result of this is Honda’s large, seven-seat electric SUV that was set to arrive in 2027 as part of the new 0 Series range. It appears now that those plans have been halted. 

The new 0 Series also includes a sedan and a mid-size SUV, set to arrive first in North America in the first half of 2026 followed by Europe and Japan, however, no plans have been confirmed to bring the 0 Series range to Australia. 

With funding for EVs scaled back, the Japanese marque is instead pivoting toward hybrid vehicles, with 13 new hybrid models reportedly launching between 2027 and 2030. 

Honda’s move away from electric vehicle development to focus on hybrids reflects an industry shift occurring among legacy car manufacturers, with brands like Ford, Mercedes, Porsche, Audi, Lotus and Volvo all among the brands that have scaled back their EV plans. 

Honda currently offers Five hybrid models in Australia, including the Accord and variants of the Civic, HR-V, ZR-V and CR-V.  

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