Honda is ending sales of its electric vehicles (EVs) in the U.S., marking the latest pullback by a major automaker in response to tepid demand in the market.
The Japanese carmaker informed American dealers on Thursday that production will cease later this year of the Honda Prologue, a Mexican-made model that was co-developed with General Motors (GM). Sales will be discontinued as of the 2026 model year, reflecting weak demand, and the company will instead focus on offering hybrid gas-electric and traditional internal combustion engine (ICE)-powered models in the U.S.
¡°We¡¯ve certainly seen success with the Prologue,¡± Lance Woelfer, the head of Honda¡¯s U.S. sales operations, said in an interview. ¡°But right now, the key for the marketplace is a balance of ICE and hybrid.¡±
The carmaker¡¯s shares declined as much as 1.9% in early trading in Tokyo on Friday.
Honda¡¯s overall sales rose 2.4% in the first half of the year, powered by strong demand for hybrid versions of its best-selling CR-V compact sport utility vehicle, Accord midsize sedan and compact Civic sedan. Hybrids made up about one-third of its total volume in June, even as deliveries of the Prologue slumped 40%.
The soon-to-be-retired EV, which is made in a GM plant in Ramos Arizpe, Mexico, was launched in 2024 ahead of three planned EVs to be built at a Honda factory in Ohio starting this year. However, the carmaker backtracked on those plans earlier this year, canceling that 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 hasn¡¯t specified in which specific models. The first of those will debut next year.
Honda will continue to sell EVs in other global markets, and Woelfer said that it may once again offer them in the U.S. at some point. ¡°There will be opportunity that we think we¡¯ll want to be a part of in the future, but when that is I can¡¯t say.¡±
For now, he said Honda will continue to sell used Prologue models as part of the company¡¯s certified preowned vehicle program.
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