Honda’s Shocking Shift: Why the 0 Series EVs and Acura RSX EV Were Canceled Amid Record Losses
Daniel Kim Views
● Honda scraps plans to launch the ‘0 Series’ SUV and sedan, and cancels the Acura RSX EV
● Forecasts first-ever annual net loss in 50 years of ¥360 billion–¥630 billion (about $2.4–4.2 billion)
● Records a massive EV investment loss of up to ¥570 billion (about $3.8 billion)
● Shifts strategy to focus on HYBElead models amid collapsing demand and stiffer trade barriers
From rosy prospects to the company’s first annual loss
Once one of Japan’s most aggressive proponents of electrification, Honda has abruptly halted development of its next-generation EV lineup — the ‘0 Series’ — after reporting an unprecedented deterioration in results. The company now expects a net loss of roughly ¥360–630 billion (about $2.4–4.2 billion) this fiscal year, its first annual deficit since going public 50 years ago. Analysts point to growing external pressures — including last year’s failed merger talks with Nissan and tariff moves under the Trump administration — as contributing factors.
2030 EV roadmap collapses
Honda had set an ambitious target to introduce 30 new electric models and reach annual EV sales of 2 million by 2030. But heavy investment losses in the EV division — roughly ¥340–570 billion (about $2.3–3.8 billion) — have stalled that plan. The now-canceled ‘0 Series’ sedan and SUV combined Formula 1‑derived technology with modern reinterpretations of iconic 1970s–80s designs and had attracted strong interest. With global EV demand contracting sharply, Honda chose to stop investments that relied on a long-term payoff.
An EV winter sweeps the global auto industry
Honda’s EV slump is not unique. Ford wrote down one of the largest EV-related charges in its corporate history — $19.5 billion — while General Motors and Stellantis posted hits of $7.6 billion and $26.6 billion, respectively. Aggressive competition from Chinese EV brands and flat U.S. demand have forced major automakers to overhaul strategies to survive.
Pivoting back to HYBElead models
Going forward, Honda plans to emphasize HYBE‑lead models rather than pure EVs. Executives describe the move as a necessary, if painful, measure to prevent further losses amid weakening EV demand. With key projects, including the Acura RSX EV, shelved, Honda will likely push back its carbon‑neutral timetable. The industry is watching how the company will steer through this management crisis as it refocuses on the more proven HYBE‑lead market.
By Won Seon-woong (Global Auto News)
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