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- Honda is ending US production of an electric vehicle that General Motors was producing.The automaker said it ended production "to better align" with "market conditions."A $7,500 EV tax credit ends at the end of September, and various automakers have halted EV plans.
Honda is the latest automaker to roll back plans for an electric vehicle, citing "market conditions."
The company is ending its US production of the Acura ZDX electric crossover that General Motors was producing at a plant in Tennessee, spokespeople for both brands confirmed to Business Insider. The vehicle was only sold in the U.S. and Canada.
A spokesperson for Honda said in an emailed statement that the decision was made "to better align our product portfolio with the needs of our customers and market conditions."
"ZDX has played a valuable role for the Acura brand, and will provide a foundation we will build on next year with the arrival of the all-electric Acura RSX, which will be produced at the EV Hub in Ohio in the second half of 2026, as well as with hybrid-electric Acura models now in development," the statement continued. CNBC first reported the news.
Honda has sold more than 19,000 ZDXs in North America since the vehicle launched in May of 2024, the spokesperson said. In May of this year, Honda's CEO said the company would cut its EV investment by 30% through the 2031 fiscal year, partly due to "a slowdown in EV market expansion."
Compared to the rest of the world, EV sales in North America are slumping — in the first four months of this year, sales rose just 5%, compared to 25% in Europe and 35% in China, per data from EV research firm Rho Motion.
A $7,500 tax credit for buying an EV in the US ends on September 30 as part of President Donald Trump's "Big Beautiful Bill." Despite a more general slowdown, EV sales surged in August as people raced to take advantage of the credit.
Other automakers have also rolled back plans for EVs in recent years and focused more on internal combustion engines, which power gasoline vehicles. Hertz, for example, paused plans to buy 65,000 EVs last year. Ford canceled plans for electric three-row SUVs, though it recently announced plans for an EV truck.
Just days ago, the CEO of luxury carmaker Bentley said that it will continue to invest in combustion engines, after previously saying it wanted to build only electric vehicles by 2035. He cited a "dip in demand for luxury electric vehicles."
