Honda Cancels EV Project – Subsidies Fail Electric Vehicle

by Marcus Liu - Business Editor
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Honda Abandons Electric SUV After Just 18 Months

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In just a few years, the expectation was that only electric cars would be sold in major global markets. however, it now appears this future may be limited to countries like Norway, China, or Ethiopia, with Western markets continuing to rely on combustion engines. This is evidenced by Honda’s decision to discontinue its electric SUV after only a year of sales.

Following a period of optimism surrounding the rise of electromobility, a notable shift in perspective has occurred. Especially in Western markets,there’s a resurgence of interest in internal combustion engines and a greater emphasis on hybrid vehicles. Reports are emerging of cancelled electric vehicle projects and efforts to incorporate hybrid technology into originally all-electric models.

Honda, having faced challenges in the electric vehicle sector, is well aware of this trend. The company previously released the compact Honda E in Europe in 2020, selling only a limited number of units over four years. The electric SUV Honda E: NY1 was slated for release in the Czech Republic, but the plan was scrapped just days before its local premiere.

in the American market, Honda offers the larger electric SUV Prologue, developed in collaboration with General Motors. Acura, Honda’s premium brand, built the electric SUV ZDX on the same BEV3 platform, following an earlier combustion engine SUV coupe. The ZDX launched in America in March of last year and was discontinued this September, lasting only 18 months on the market – a remarkably short lifespan.

Acura Discontinues ZDX Electric SUV After Limited Sales

Acura has discontinued its all-electric ZDX SUV after a relatively short run, citing limited consumer interest and the end of a key technology partnership with General Motors.The decision highlights the challenges facing automakers as they transition to electric vehicles, particularly in achieving price points that appeal to a broader market.

Honda’s Broader EV Strategy Shift

The Acura ZDX’s discontinuation follows Honda’s earlier decision to halt sales of the Honda E in europe, also due to weak demand and pricing concerns. Honda is now focusing on developing its own EV technology,partially in collaboration with Sony,and aims to offer more accessible electric vehicles in the future. The end of the partnership with GM, which provided the platform for the ZDX, played a role in this decision. Honda had to pay for the use of GM’s Bev3 platform and related technologies, a cost that likely contributed to the ZDX’s higher price point. https://www.carscoops.com/acura-zdx-discontinued-gm-platform/

ZDX Performance and Specifications

The Acura ZDX, a 5-meter (approximately 16.4 feet) long SUV, featured a 102 kWh Ultium battery pack. It was offered in several configurations:

* Rear-Wheel Drive: 367 kW (approximately 493 horsepower)
* All-Wheel Drive: 365 kW (approximately 490 horsepower)
* Type S: 373 kW (approximately 500 horsepower)

The ZDX shared its platform with several GM electric vehicles, including the Cadillac Lyriq, Vistiq, and Optiq, as well as the Chevrolet Blazer EV and Equinox EV. https://www.carscoops.com/acura-zdx-discontinued-gm-platform/

sales Figures and Market Context

The Acura ZDX experienced modest sales figures in the US. 4,337 units were sold in 2023, increasing to 11,520 in 2024. The original starting price of $64,500 (approximately $1,345,000 CZK) appears to have been a significant barrier to wider adoption. The discontinuation of the $7,500 US federal EV tax credit also likely impacted sales.https://www.carscoops.com/acura-zdx-discontinued-gm-platform/

Future Plans for acura

Acura plans to introduce a new electric model, the RSX, next year. This vehicle will be built on Acura’s own dedicated EV technology, signaling a shift away from reliance on GM platforms. Currently, Acura’s lineup consists solely of combustion engine and hybrid models.

Sources:

* Carscoops: https://www.carscoops.com/acura-zdx-discontinued-gm-platform/

* Acura (Image Source): (Referenced in original text, no direct link provided)

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