Amid political maneuvers in the US, Honda is still bringing to light a midsize electric crossover — the successor to the 0 Series concept, which despite everything, could reach American dealers sooner than expected.
As the auto industry world is feverish with the shifting demand for electric vehicles, Honda is once again adjusting its long-term development plan. The company, which earlier announced a temporary pause in developing electric traction models, has decided to make an exception — for one crossover, which seemingly has a chance to become a turning point for the brand in its new electric strategy.
In January 2025, Honda presented a ten-year development plan, betting on hybrid powertrains and delaying the launch of fully electric models based on the 0 Series concept closer to the end of the decade. Then the vector was clear: hybrids are currently more profitable, affordable, and, importantly, better perceived by the market. However, as it became known from Tokyo, significant adjustments appeared in the very structure of the plan.
The reason for the partial reassessment was political reality: from this fall, the so-called "Big Beautiful Law" goes into effect in the US — an initiative approved by Donald Trump, which repeals a federal incentive of $7,500 for buying an electric car. For companies betting on the mass market, this means one thing: risks are rising, and profits are rapidly shrinking.
Honda understands this and therefore is halting the release of a large electric crossover of the 0 Series, initially intended primarily for the American market, where crossovers and SUVs provide more than half of the company's sales.
However, the midsize electric crossover, which will be more compact and likely more affordable, remains in development. Apparently, Honda sees it as a potentially more viable model in the changing economic conditions. Reducing electrification investments from 10 to 7 trillion yen — approximately from 69 to 48 billion dollars — has already become part of the revised strategy. The main focus is now on developing hybrid systems, especially in markets with high competition and unpredictable regulatory conditions.
Judging by the company's actions, Honda intends to turn almost its entire lineup into hybrids: in the coming years, it can be expected to expand the range with hybrid versions of the CR-V, Passport, and flagship Pilot. This will help strengthen the brand's position in a segment that shows stable demand. Meanwhile, preparation for future electric vehicles continues: Honda does not abandon the plan to launch the 0 Series — the time frames are simply shifted.
Interestingly, similar steps are being taken by competitors. Toyota, for instance, recently announced the postponement of its new electric SUV until 2028 and directed resources toward the development of the Grand Highlander, a model already proven in the market. Ford, in turn, is also adjusting its course, redistributing investments and even transferring part of its battery production in Kentucky to Nissan's control. These decisions underscore that the era of electrification in the automotive industry is moving not in a straight line but rather with zigzags — and Honda seems to have found its temporary compromise between the electric future and the hybrid present.
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