Dead before arrival: Honda kills off pioneering 0 Series sedan and SUV just months before radical EVs are due to launch
Honda has reportedly pulled the plug on its 0 Series SUV and wedge-shaped 0 Series sedan amid concerns about limited market demand for the brand’s next-generation electric vehicles.
The move is said to form part of a broader strategic reset that could see Honda write off a reported $22 billion investment, although this is understood to be less than the potential losses had the models failed commercially. The two EVs had been slated for launch between late 2026 and early 2027.
The decision, which also affects the Acura RSX EV for North America, has been attributed to a mix of shifting government policies, slowing EV uptake and pressure on the company’s financial performance.
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“This decision was made as part of the reassessment of the company’s automobile electrification strategy due to various factors, including recent changes in the business environment,” Honda said.
“The profitability of Honda’s automobile business is currently declining, due primarily to the unfavourable impact of changes in US tariff policies on the gasoline and hybrid vehicle business, and a decline in the competitiveness of Honda products in Asia due to the allocation of more resources to EV development.”
Changes to US policy settings, including the removal of federal incentives, are also believed to have influenced the rethink, along with softer-than-expected EV demand in key markets such as the United States and Japan.
Honda’s declining market share in China is also understood to have played a role, with the 0 Series originally intended to showcase next-generation EV technology capable of competing with leading Chinese brands.
While the larger 0 Series SUV appears to have been shelved, Honda says it is continuing development of a smaller mid-size 0 Series SUV, known as the 0 Alpha.
The 0 Alpha is expected to feature elements of the larger vehicle’s technology, including a steer-by-wire system paired with a yoke-style steering wheel and fully variable steering ratio.
Originally earmarked for emerging markets including India, the smaller EV has now also been confirmed for Japan. That could open the door for an Australian introduction, where it would compete with models such as the Kia EV5, BYD Sealion 7 and Tesla Model Y.
In the meantime, Honda Australia is preparing to launch its first battery electric vehicle locally,the compact city-focused Super-One.
