Honda cancels 0 Series and Acura RSX; what comes next for EVs?

Honda cancels the 0 Series and the Acura RSX, with US$ 15.7 billion in losses; says EV demand has fallen and that SDV in China intensifies competition.

Cancellation of Honda projects

Honda confirmed the halt of work on the Honda 0 Series and the electric Acura RSX projects, in addition to suspending market entry for these models. The company also announced a write-off of approximately US$ 15.7 billion in restructuring costs.

In a statement, the automaker explained that starting production and sales of these models in the current scenario of low EV demand would generate long-term losses.

What was at stake

The 0 Series concepts — Saloon and SUV — were presented at CES 2024 and again at CES 2025, with a planned launch for 2026. This schedule, however, will not materialize.

Why the decision was made

The company points to factors such as tariffs associated with the Trump administration and the difficulty of balancing resources between EV development and maintaining competitiveness in Asia as part of the weight of the decision.

A key excerpt from the statement highlights the strategic challenge: in the Chinese market, consumers increasingly value software-based features, such as driver-assistance systems and SDV technologies, which has increased competition with new EV manufacturers and made it difficult to offer a better cost-value ratio.

Impact for the industry and Europe

The text reinforces that this pressure is not exclusive to China; European manufacturers also face the challenge of keeping up with increasingly rapid development cycles, focusing on software and innovation.

What comes next

According to the company, the priority will be to monitor profitability and market trends before launching new EV models. Meanwhile, Honda will maintain its focus on hybrids.

Comment: Do you think automakers should insist on EVs even with volatile demand or bet more on hybrids that integrate advanced software? Leave your opinion in the comments below.