Honda Motor has “postponed indefinitely” its plans to build a CAD 15 billion (US$ 11 billion) battery electric vehicle (BEV) plant in Canada, in response to weakening demand in the US following the Trump administration’s withdrawal of BEV purchase incentives worth up to US$ 7,500 per vehicle last year.
According to a report by Japan’s Nikkei news agency, Honda has now postponed indefinitely plans to build an integrated BEV and battery assembly facility in the Canadian state of Ontario, choosing instead to focus more on the fast-expanding hybrid-electric vehicle (HEV) segment.
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The Japanese automaker had previously announced it was postponing construction of the planned 240,000 unit/year plant by two years, until 2028. Last month, the company’s battery materials supplier, Asahi Kasei, said it was delaying the planned start of production at a new facility in Ontario until 2029 or later, in response to Honda’s earlier announcement.
Earlier this year, Honda also announced it was scrapping plans to produce three BEV models at its plant in the US state of Ohio, having previously cancelled plans to develop affordable BEVs for the North American market in partnership with General Motors (GM).
Honda said it would book a one-off charge of JPY 2.5 trillion (US$ 15.6 billion) in the current fiscal year (FY2026) in relation to the overhaul of its global BEV strategy, while also scaling back its planned investments in electrification R&D and related software.
