Sorry, there’s bad news for electric vehicle fans. Honda is the latest automaker to dial back its plans. Instead of building a large electric SUV, it’s slashing $20 billion from the EV development budget to focus on hybrid vehicles instead. 

Honda cancels large electric SUV plans 

Honda was planning on building a large electric SUV in 2027 to battle the Kia EV9. However, interest in electric vehicles has been declining. As a result, the automaker has pulled the plug on this three-row model. 

Also, Honda was planning to develop seven new EVs by the end of the decade. More of these options could get cut as drivers want more gas-powered and hybrid options. The smaller 0 Series Saloon EV is still coming to the market, though. 

Honda has decided to reduce its $68.7 billion EV investment to only $48.1 billion. It’s moving roughly $20 billion to develop new and improved hybrid vehicles. Hybrids have experienced a surge in demand in America and Europe. 

According to Inside EVs, this could be related to the United States’ recent policy shift related to EVs. Without the $7,500 federal EV tax credit, demand for EVs in America is expected to decrease even more. 

Honda isn’t alone in this decision to back away from electric vehicle development. Ford has also canceled plans to build a three-row electric SUV. Ram keeps delaying electric trucks, and Toyota has been firm about sticking to hybrids for years. 

However, the Honda Prologue is an EV that’s manufactured by General Motors in America, and it’s doing quite well. For now, at least.