US President Donald Trump’s decision to repeal the $7,500 tax credit for electric vehicles (EVs) has dealt a significant blow to Honda, which has cancelled plans for one of its upcoming large SUV EVs. The move, part of Trump’s ‘Big Beautiful Bill’, will make it less viable for Honda to compete in the US market.
The cancellation affects Honda’s plan to launch seven EVs in the US from its upcoming 0 Series. While the company is reassessing its EV strategy, it remains committed to achieving carbon neutrality through electric vehicles. Despite this, Honda’s sales estimates for 2030 have been revised downward due to a recent market slowdown.
The company had previously invested $75 billion in EV development until early 2032 and planned to establish an EV assembly and battery plant in Ontario. However, the reduction in investment may be linked to postponing its Canadian EV value chain.
Honda’s mid-size SUVs and sedans, including the 0 SUV and 0 Saloon concepts, are still set to launch in North America from 2026. The company’s largest market globally is the US, where SUVs account for approximately 60% of vehicle sales.
Source: https://torquecafe.com/donald-trump-big-beautiful-bill-kills-honda-ev