Honda Pulls Plug On Key Electric SUV For US Market

As more buyers gravitate toward hybrids over fully electric vehicles, automakers are rethinking their EV roadmaps. Among them is Honda, which has reportedly shelved plans for a large electric SUV intended for the US market as it reevaluates its electrification strategy.

More: Honda’s Future Is Packed With New Models And It Isn’t All Electric

The decision seems tied to the slower-than-expected pace of EV adoption in the US. A recent tax bill passed under the Trump administration may have also played a role, rolling back key EV incentives and making electric models less appealing to cost-conscious buyers.

Cost Challenges and Changing Priorities

According to a report from Nikkei Asia, development and procurement costs for larger EVs are significantly higher, mainly due to the size and expense of the battery packs. Honda appears to have concluded that the financial risk of launching a large EV in this environment wasn’t worth taking, especially with the model originally scheduled for a 2027 debut.

The now-canceled SUV was meant to round out a lineup that includes a midsize electric SUV and sedan, both of which have already appeared in near-production form and are still expected to launch in 2026 as part of Honda 0 Series concepts. Honda’s broader plan was to offer seven EVs in the US by 2030, a target that now looks less certain.

Electrification Pullback, Hybrid Push

In May, Honda announced it had reduced its investment in electrification from ¥10 trillion ($69 billion) to ¥7 trillion ($48 billion). The company is now placing more emphasis on hybrid models, which will result in a scaled-back EV rollout.

Between 2027 and 2031, Honda aims to introduce 13 new-generation hybrids worldwide, targeting 2.2 million hybrid sales by 2030. This lineup will include a new large SUV designed specifically for the North American market, which could effectively replace the scrapped electric version.

More: Honda’s Latest Concept Looks Familiar Yet Unexpectedly New

Earlier this year, we reported a notable uptick in Honda Prologue sales, with a 963% increase in the first half of 2025 compared to the same period in 2024. Still, total sales stood at just 16,318 units, making it the lowest-selling model in Honda’s US portfolio. Despite the sharp percentage gain, the numbers underscore the ongoing challenges in the EV segment.

Of course, Honda is not the only automaker that has delayed its EV plans. Nissan has canceled two EVs originally planned to be produced in the US, Ford has paused development of large EVs, while Toyota has postponed the production of a large electric SUV from 2026 to 2028.