Honda kills EVs and kills its future market chance
Honda ends EV plans blaming tariffs competition. Legacy automakers reconsider EV strategy amid industry shift and Chinese market pressure.
Tokyo: Honda stops making electric cars to save money. The company ended its small EV plans this week. Now it has little hope to compete later.
Honda stopped work on three EV models including electric Acura RDX. Friday news said it will stop making Chevrolet-based Prologue. The company blames US taxes on China and Chinese car makers.
Honda sees EV as just a gas car with battery. This is wrong. Many car makers found putting big batteries in old car designs makes heavy slow cars. Ford Mustang Mach E has this problem. Its old platform and heavy wiring make it costly.
If Honda stops EVs it misses learning chances. It won’t learn to build new supply chains. It won’t get feedback about what people want. The company also falls behind on software cars that get better over time like Tesla.
Honda makes good gas engines. But engines matter less now. Honda also makes “driver’s cars” that handle well. When cars drive themselves this skill means little to most buyers.
People buy Honda for reliability and fair price. Electric cars should be more reliable Honda can’t compete there. Chinese brands show batteries can lower costs. Without EV plans Honda may fail in other markets too.