Report: Honda to further scale back EV development to focus on hybrids

Honda, much like any other manufacturers have been doing recently, is set to further reshuffle its resources to invest more in hybrid vehicle development instead of full EVs.

According to Nikkei Asia, Honda has pulled the plug on its plan to launch a large three-row electric SUV that was supposedly for the US market. The model was expected to come out in 2027 as a rival to the Kia EV9, but policy shift in the US and slowing EV demand has prompted Honda to put the brakes in the development of the particular model.

The Japanese manufacturer has already reported back in May that it would slash its R&D budget, along with abandoning its goal of having EVs cover 30% of its total sales by 2030.

Honda is pivoting towards hybrids instead, as they plan to introduce 13 hybrid models that include the upcoming Prelude, and an improved hybrid architecture with lighter weight, lower costs, and improved fuel efficiency.

While the three-row electric SUV is reportedly axed, Honda is still set to introduce a few EVs in its pipeline. Those include production versions of the 0 SUV and the 0 saloon, along with a small hatchback EV called the Super EV concept, which is believed to be the successor of the Honda e.