Honda to more definitively halt $15 billion Canadian EV plant: report

TORONTO — Honda Motor plans to more definitively halt development on its $15 billion electric vehicle complex in Canada, according to a news report from Nikkei Asia.

The Japanese automaker paused development in May last year, saying at the time that the company would review where the EV market was in two years before deciding the future of the project.

The report from Nikkei Asia says sluggish U.S. demand for EVs is leading the automaker to freeze the Canadian EV investment and make hybrids the centre of its North American strategy.

Honda already produces hybrid Civics and CR-Vs at its plant in Alliston, Ont. alongside conventional gas models.

Honda Canada said in a statement that it had nothing to report at this time.

Major U.S. policy shifts, including announced plans to weaken fuel efficiency standards and removing financial supports for EV adoption, have reduced expected uptake of the zero emission vehicles.

This report by The Canadian Press was first published May 6, 2026.

Ian Bickis, The Canadian Press