Honda Abandons EV Plans, Jeopardizing Future Competitiveness

The automaker's decision to halt development of its first ground-up electric models could set it back in the race to electrification and software-defined vehicles.

Mar. 14, 2026 at 5:23pm by Ben Kaplan

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Honda has made the decision to halt development of its first ground-up electric vehicles, including the Acura RDX EV and Honda 0 sedan and SUV. The company is also stopping production of the Prologue EV, which was designed and built entirely by GM. Experts argue this move will severely hamper Honda's ability to compete in the rapidly evolving electric and software-defined vehicle markets, putting the automaker's long-term future at risk.

Why it matters

Honda's retreat from EVs comes at a critical time, as the automotive industry undergoes a major shift towards electrification and software-defined vehicles. By abandoning its fledgling EV programs, Honda risks falling further behind competitors who are investing heavily in these technologies, which are poised to define the future of the car industry.

The details

Honda cited U.S. tariffs and competition from Chinese automakers as reasons for halting development of its first ground-up electric models, including the Acura RDX EV and Honda 0 sedan and SUV. The company is also stopping production of the Prologue EV, which was designed and built entirely by GM. Experts argue this decision will severely hamper Honda's ability to learn the necessary skills and build the supply chains required to compete in the rapidly evolving EV and software-defined vehicle markets.

  • On March 14, 2026, Honda announced it was killing its three EV programs for the U.S. market.
  • In its recent earnings report, Honda acknowledged that it was "unable to deliver products that offer value for money better than that of newer EV manufacturers" in China, resulting in a decline in competitiveness.

The players

Honda

A major Japanese automaker known for its reliable internal combustion engine vehicles, but which has struggled to gain traction in the electric vehicle market.

Acura RDX

An electric crossover model that Honda had been developing as part of its first ground-up EV program.

Honda 0

An electric sedan and SUV that Honda had been developing as part of its first ground-up EV program.

Prologue

An electric vehicle that Honda had been producing in partnership with GM, but has now decided to stop making.

Chris Farley

The CEO of Ford, who has discussed the challenges of adapting legacy vehicle platforms for electric powertrains.

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What’s next

Honda has not provided any clear details on its future electric vehicle plans or when it may resume development of new EV models.

The takeaway

Honda's decision to abandon its first ground-up electric vehicle programs puts the automaker at serious risk of falling behind its competitors in the rapidly evolving electric and software-defined vehicle markets. This move could jeopardize Honda's long-term competitiveness and relevance in the automotive industry.