key takeaways:
- Honda Motor Co. is discontinuing sales of its electric vehicles in the US, the latest withdrawal by a major automaker in response to low demand in the market. The Japanese carmaker informed US dealers on July 16 that production would cease later
- The move reflects weak EV demand as Prologue deliveries declined 40%, while hybrids drove Honda’s first-half sales increase of 2.4%.
- Honda plans to focus on hybrid and gasoline vehicles in the US, with a target of 15 new hybrid models globally by March 2030.
Honda Motor Co. is discontinuing sales of its electric vehicles in the US, the latest withdrawal by a major automaker in response to low demand in the market.
The Japanese carmaker informed U.S. dealers on July 16 that production of the Mexican-made model Honda Prologue, which was co-developed with General Motors Co., will cease at the end of this year. Reflecting weak demand, sales will be discontinued beginning with the 2026 model year, and the company will instead focus on introducing hybrid gas-electric and conventional internal combustion engine-powered models in the US.
“We’ve certainly seen success with the Prologue,” Lance Wolfer, head of Honda’s U.S. sales operations, said in an interview. “But right now, the key to the market is a balance of ICEs and hybrids.”
Honda’s total sales increased 2.4% in the first half of the year due to strong demand for hybrid versions of its best-selling CR-V compact SUV, Accord midsized sedan and compact Civic sedan. Hybrids made up about one-third of its total volume in June, even as Prolog’s deliveries declined 40%.
Alex Fraser from Cox Fleet discusses how fleets should respond when a roadside breakdown occurs, testing their safety, compliance and customer service systems simultaneously. Tune in by going above or RoadSigns.ttnews.com.
The soon-to-be-retired EV, which is built at a GM plant in Ramos Arizpe, Mexico, was slated to launch in 2024 ahead of three planned EVs to be built at a Honda factory in Ohio starting this year. However, the carmaker backed away from those plans earlier this year, canceling a trio of battery-electric models as part of a broader strategic pivot.
The company expects to launch 15 new hybrids by March 2030, primarily in North America, but has not specified which specific models those will be. The first of them will start next year.
Honda will continue to sell EVs in other global markets, and Wolfer said it may once again offer them in the US at some point. “There will be an opportunity that we think we’ll want to be a part of in the future, but I can’t say when that will be.”
For now, he said Honda will continue to sell used Prologue models as part of the company’s certified pre-owned vehicle program.
