Honda pulls the plug on its larger electric SUV, but that’s not all

That larger Honda electric SUV may be a pipe dream after all. Honda follows Ford, Toyota, and other automakers in adjusting major EV plans in the US.

Honda scraps plans for a larger electric SUV

Although Honda’s first electric SUV, the Prologue, was one of the top-selling EVs in the US last year, the Japanese automaker is preparing for a slowdown.

Thanks to the Trump Administration’s recently passed “Big, Beautiful Bill,” which kills off the $7,500 federal tax credit at the end of September, Honda expects lower demand for EVs.

According to a new Nikkei report, Honda is now scrapping plans for its larger electric SUV in the US, its largest market. Instead, the company will focus on hybrid vehicles, similar to recent moves from Ford, Toyota, and others.

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Honda’s larger electric SUV was due to be released around 2027, about the same time as Ford and Toyota’s three-row EV SUVs. The upcoming Honda 0 Series electric SUV and sedan are still set to arrive starting next year.

We got a sneak peek of the midsize electric SUV in April after a camouflaged prototype made its debut on the streets of Tokyo for the first time.

Honda announced earlier this year that it is reducing its planned EV investments by $21 billion through 2030, as it expects lower demand. Like Ford and Toyota, Honda will focus on hybrids in the meantime.

In a separate report on June 20, Nikkei claimed that Honda and Nissan were considering a new US partnership just months after their global tie-up fell through.

Electrek’s Take

Honda is one of the few Japanese automakers to gain some momentum in the US EV market, but scrapping plans for the bigger model could put it behind rivals like Hyundai and Kia.

Through the first half of the year, Honda has sold over 16,300 Prologues in the US. In comparison, Toyota sold just over 9,200 bZ4X models.

Even Acura’s EV is seeing significantly more demand than expected. Acura sold 10,355 ZDX models in the first half of 2025, outpacing the Cadillac Lyriq, which is based on the same platform. Earlier this year, Mike Langel, vice president of national sales for Acura, told Automotive News that the company expected to sell around 1,000 ZDX models a month this year.

Honda, like most of the auto industry, is bracing for a shakeup as the Trump Administration rolls back EV incentives, putting the US on track to lag even further behind leaders like China.