Honda Motor plans to introduce a hybrid variant of a full-size sport utility vehicle (SUV) for the North American market, marking its entry into the segment.

A final model has not been chosen, though the Pilot SUV is under consideration, according to Nikkei Asia.

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Honda will equip the forthcoming hybrid electric vehicle (HEV) model with a newly developed six-cylinder engine aimed at improving hybrid fuel economy by 30% compared with petrol-only versions, alongside reducing CO2 emissions.

In a statement, Honda said: “As market demand for HEV models continues to grow, Honda positions its HEV models, especially the next-generation models scheduled to go on sale in 2027 and beyond, as a core group of products which will play key role during the transitional period leading up to the full-fledged popularization of HEVs. Especially in the North American market, which will be the main market for HEV models, there will continue to be solid demand for large-size HEVs.” 

As per the report, the North American launch is targeted for 2029 as the company adjusts to softer demand for fully electric vehicles (EV).

In the US, reduced purchase incentives have contributed to a moderation in EV sales growth.

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Amid this backdrop, the Japanese automaker discontinued production of its battery-powered Acura ZDX premium crossover vehicle earlier this year.

In North America, roughly 30% of Honda’s sales come from full-size models.

While buyers in the segment typically prioritise towing capacity and similar performance attributes over fuel efficiency, recent inflation pressures have increased sensitivity to fuel costs.

Honda intends to enhance full-throttle acceleration by more than 10% and deliver smoother starts when towing heavy loads.

The move positions Honda against rivals such as Toyota Motor and Hyundai Motor, which are broadening their full-size hybrid ranges in the region.

Honda already sells a hybrid CR-V in North America and is targeting hybrid sales of 2.2 million vehicles in fiscal 2030, more than double its plan for fiscal 2025.

The company maintains its longer-term strategy to discontinue internal combustion engines by 2040, transitioning its entire line-up to EVs or fuel cell models, with hybrids underpinning earnings until wider EV adoption.

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