Honda Cancels Its Next-Gen EVs Due to Weak Demand; Alpha SUV for India Still on the Cards

Honda has pulled the plug on three EVs for North America, including the 0 Series SUV, 0 Series Saloon, and an Acura RSX crossover, due to ‘recent changes in the business environment’ and declining demand for electric vehicles. The company believes that launching these models in such conditions would likely 'result in further losses over the long term.' That said, the Japanese automaker remains optimistic about growth opportunities in India and plans to strengthen its lineup for the market. As a result, the 0 α (Alpha), positioned as the entry point to the 0 Series, is still on the cards.

There’s no official confirmation, but the Alpha SUV is expected to go on sale here sometime in early 2027, with estimated prices ranging between Rs 17 and Rs 30 lakh (both, ex-showroom).

Major Reasons Behind the Move

Honda’s plan to achieve carbon neutrality by 2050 is facing multiple challenges across major markets. The demand for EVs in the U.S. has slowed due to easing fossil fuel regulations and revised federal incentives, while new tariffs have impacted the profitability of its gasoline and hybrid lineup.

Moreover, aggressive EV startups in China are intensifying competition with software-focused technologies and faster product development cycles.

Honda Bets More on Hybrids

To adapt to shifting market scenarios, Honda is reorganising its strategy with a stronger focus on hybrids. The Japanese brand will reassess EV investments in the U.S. while expanding its product lineup in growth markets like India. It also plans to boost competitiveness across Asia by introducing next-generation hybrid models.