Honda scraps EV factory plans amid weak demand

Honda has decided to halt its plans for new electric vehicle factories due to a decline in global EV demand. The Japanese car manufacturer now anticipates losses related to EVs could reach as much as ¥2.5 trillion by the fiscal year 2027, prompting a shift towards hybrid vehicles. This move aligns with a wider industry trend where consumers are leaning towards more affordable hybrids. Although Honda had previously committed to investments in EV production facilities in North America and Japan, those initiatives are now on hold. The company plans to cut costs by utilizing its current hybrid technology and supply chains. While Honda will still work on EV development, it will do so more cautiously, emphasizing profitability over sheer volume.