Honda has announced that it is cancelling the development and market launch of its upcoming Honda 0 SUV and Honda 0 Saloon EVs, just months before production was scheduled to begin in the United States. The Japanese automaker also confirmed that the US-market Acura RSX has been scrapped.
The company said the move came after a reassessment of its automobile electrification strategy, which was prompted by rapidly changing business conditions and what it described as an “extremely challenging earnings situation.” Honda expects to record losses in its consolidated financial results for the fiscal year ending March 2026.
According to the automaker, launching production and sales of the three EV models under the current circumstances would likely result in further long-term losses. As a result, Honda decided to cancel their introduction before production began.
The 0 SUV And 0 Saloon
Honda unveiled the 0 SUV and 0 Saloon as the first models in its Honda 0 Series, which the company had planned to roll out globally starting this year. The 0 SUV featured a relatively production-ready design with flush door handles, a blacked-out glasshouse, a tapered rear with a narrow “letterbox” rear window, and full-width U-shaped taillights. Meanwhile, the 0 Saloon stood out with a more radical one-box silhouette, a sweeping roofline, a large rear diffuser, and a distinctive rear lighting panel featuring concentric “infinity” rings.
Both models followed Honda’s “Thin, Light and Wise” design philosophy and featured minimalist interiors with wraparound lounge-style seats, a full-width dashboard display with five screens, and a steering yoke. They were also intended to run the Asimo OS, designed to integrate vehicle systems, enable over-the-air updates, and support Level 3 eyes-off automated driving using AI technologies developed with Helm.ai.
The two EVs were also showcased alongside the Honda 0 Alpha, which made its global debut at the Japan Mobility Show 2025. Together, they were part of a planned seven-model lineup under the 0 Series that Honda intended to introduce by 2030, although it remains unclear whether development of the Alpha will continue.
Changing Market Conditions
Explaining the cancellation, Honda said that although it had been pursuing EV adoption with strong determination due to increasingly stringent environmental regulations in the US and other markets, recent policy shifts have altered the outlook. These include revisions to EV incentives and the easing of fossil fuel regulations in the United States.
The company also pointed to declining competitiveness in parts of Asia, partly due to resources being heavily directed toward EV development. At the same time, consumer preferences in markets such as China have shifted away from hardware-focused attributes like fuel efficiency and cabin space towards software-based features that can continuously evolve through updates.
Honda acknowledged that newer EV manufacturers have gained an advantage through shorter development cycles and strong capabilities in software-defined vehicle technologies. As a result, it said the company was unable to deliver EV products that offered better value than those competitors, contributing to a decline in competitiveness.
Greater Focus On Hybrids
In response, Honda said it will reassess its resource allocations and place greater emphasis on strengthening its hybrid portfolio. This direction aligns with earlier remarks by the company’s president and representative executive officer Toshihiro Mibe.
Regionally, Honda said it will continue focusing on key markets such as Japan and the United States while improving model lineup and cost competitiveness in India, where demand is expected to grow. Across Asia, the company plans to push forward with the introduction of next-generation hybrid models. Honda added that it will reveal details of a revised mid- to long-term strategy for its automobile business in May.
(Source: Honda [official website])
