Japanese automaker Honda Motor Co. has reportedly suspended plans for its massive $15-billion electric vehicle project in Alliston, Ontario, as slowing demand for EVs in the United States forces the company to rethink its North American strategy. According to a report by Nikkei Asia, Honda is now shifting its focus toward hybrid vehicles instead of fully electric production.
The project, first announced in 2024, was expected to become one of Canada’s largest EV investments and was originally scheduled to begin operations as early as 2028. However, uncertainty surrounding the EV market and changing economic conditions have prompted the automaker to delay its plans indefinitely.
Responding to the report, the office of Industry Minister Mélanie Joly said the global automotive sector is undergoing major transformation. The statement pointed to American tariffs and shifting U.S. domestic policies as key pressures impacting automakers and causing several companies to postpone or scale back EV and battery investments.
The federal government added that Canada remains committed to supporting the country’s automotive sector by protecting existing manufacturing facilities, easing tariff pressures, and sustaining the production of fuel-efficient vehicles while maintaining long-term competitiveness in the industry.
Honda Canada, meanwhile, declined to confirm the suspension directly, stating only that the company has “nothing to report at this time.” The uncertainty follows an earlier announcement in May 2025 when Honda delayed the project by two years, with CEO Toshihiro Mibe saying the company would closely monitor the future of the EV market before making a final decision on the project’s launch timeline.
