Honda has decided to discontinue the 0 Series SUV and sedan.

In a shocking move, Honda has decided to cancel the launch of the 0 Series SUV and sedan, just months before they were set to enter production in the USA. This announcement has come just after the Japanese manufacturer has decided to rethink its EV strategy during this crucial financial crisis.

The Honda 0 Series was also set to be launched in the Indian markets as full import, but even that has been cancelled. However, the smaller locally manufactured in India, the Alpha SUV is still on track. 

Why did Honda cancel the 0 Series SUV and sedan?

According to the manufacturer, the major policy changes in the US has affected the EV business as the Trump administration has decided to cancel the incentives on buying and manufacturing EVs which were given by the previous government in order to boost the adoption of EVs.This has also impacted the profitability by imposing extra tariff policies on gasoline and hybrid powertrains. The company also addressed this issue and said, “We analysed that the starting production and sales of these models in the current business scenario would be very difficult as demand for EVs is constantly declining, which could lead to further losses over longer periods of time.”

What does it mean for India?

It is clearly evident that Honda has cancelled their plans for the 0 Series SUV in India. As for the Indian markets, Honda is focussing more on the smaller 0 Alpha SUV, which is one of the seven models originally planned to launch under Honda 0 Series of EVs. One of Honda's India spokesperson also confirmed this by saying that, “The 0 Alpha SUV is still on track.”