Honda, Nissan rethink North America EV plans

May 6 (Asia Today) -- Honda and Nissan are overhauling their electric vehicle strategies in North America as policy changes and weaker demand reshape the market, Japanese media reported Wednesday.

Honda has indefinitely postponed construction of a major EV production hub in Ontario, Canada, while Nissan has scrapped plans for U.S. EV production and will focus instead on expanding its hybrid lineup, according to Nikkei.

Honda announced the Ontario project in April 2024. The plan called for vehicle and battery plants with annual production capacity of 240,000 units and a total investment of 15 billion Canadian dollars, or about $11 billion.

The project had already secured land and government support, but Honda delayed the launch by two years in 2025 after EV market growth fell short of expectations. Nikkei said the plan could eventually be canceled depending on the direction of North American policy.

The shift comes as the Trump administration's rollback of EV tax credits has increased consumer costs, while relaxed environmental rules have reduced pressure on automakers to expand EV production.

U.S. EV sales fell 36% year-over-year in the fourth quarter of 2025, while hybrid vehicles rose from 11% to a record 19% of the market.

Japanese automakers are expected to prioritize hybrids to protect profitability in North America as a near-term EV recovery appears unlikely.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260506010000976

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