Honda cancels 3-row EV SUV as part of R&D budget cuts – money to go to hybrid powertrains instead

Honda cancels 3-row EV SUV as part of R&D budget cuts – money to go to hybrid powertrains instead

Honda has joined a growing number of carmakers reevaluating their electrification plans, cancelling a three-row electric SUV aimed at the North American market. The death of the car, which was set to compete with the Hyundai Ioniq 9 and Kia EV9, comes as part of recently-announced plans to scale back the development of pure electric vehicles, reported Carscoops citing Nikkei Asia.

In May, the company said it would slash its R&D budget on models due out by 2030 from 10 trillion yen (RM289.6 billion) to 7 trillion yen (RM202.8 billion), with some of the money saved going into hybrid powertrains instead. It also abandoned its goal of having EVs make up 30% of its sales by 2030.

The news follows in the footsteps of Ford and Toyota, which have cancelled and delayed their large crossover EVs respectively. Nissan has also delayed its electric Xterra by ten months to November 2028 and its Infiniti sibling to March 2029.

Honda cancels 3-row EV SUV as part of R&D budget cuts – money to go to hybrid powertrains instead

Honda’s move is seen to be a reaction to slowing EV demand in many parts of the world, as well as the US recently dissolving a US$7,500 (RM31,900) EV federal tax rebate as part of president Donald Trump’s One Big Beautiful Bill (OBBB).

While the 30% drop in spending has led to some casualties, Honda still has several EVs in the pipeline, including the 0 SUV and sedan (the former launching globally next year) set to define a new era for the company, as well as a small city car that will be previewed at the Goodwood Festival of Speed this weekend.

Honda cancels 3-row EV SUV as part of R&D budget cuts – money to go to hybrid powertrains instead

Honda is also developing the Afeela 1 in collaboration with Sony. In China, meanwhile, the company already has its three “Ye” EVs – the P7 and S7 SUVs and the soon-to-be-launched GT, all built on a dedicated platform.

But Honda is pivoting hard towards hybrids, announcing 13 new models that include the forthcoming Prelude and those built on a new, lighter platform with AWD, the latter set to debut in 2027. The new architecture is touted to reduce costs by up to 30% and improve fuel economy by 10%. As a result, the company estimates hybrid sales to reach 2.2 million units by 2030, with EVs whittling down to around 750,000 units.

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Jonathan Lee

After trying to pursue a career in product design, Jonathan Lee decided to make the sideways jump into the world of car journalism instead. He therefore appreciates the aesthetic appeal of a car, but for him, the driving experience is still second to none.

 

Comments

  • Sabri on Jul 09, 2025 at 11:59 am

    China power. Jepunis overlord ded.

    Like or Dislike: Thumb up 15 Thumb down 14
    • Matti on Jul 09, 2025 at 4:31 pm

      China has no power in the North American market (thanks to sanctions), so they are not the reason for this. Large electric SUVs, which typically go for long trips, are just really hard to sell in EV form, due to lack of range and charging infrastructure in the US. Until battery technology gets better (and cheaper) hybrids are a better market in that particular region.

      Like or Dislike: Thumb up 6 Thumb down 7
  • Need MPUV with PHEV and HEV for the mass

    Like or Dislike: Thumb up 2 Thumb down 1
 

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