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We informed you earlier that Honda will launch the 0 Series SUV and Prelude Sports Coupe as CBUs in the Indian market. However, the company has cancelled the 0 Series SUV and sedan ahead of their planned production commencement in the USA. This decision was made as part of the reassessment of the company’s automobile electrification strategy due to various factors including recent changes in the business environment.
While the Honda 0 Series SUV and Sedan has been cancelled, Honda will continue to work on the smaller and made-in-India 0 Alpha SUV. This SUV will be manufactured in India for domestic and export markets.
In an official statement, Honda stated that the profitability is currently declining due to the unfavourable impact of changes in U.S. tariff policies on the gasoline and hybrid vehicle business, and a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development.
In order to respond flexibly to rapid changes in its business environment, Honda is making progress in reorganizing its strategic framework and reestablishing its competitive strengths. The Japanese automaker will reassess its resource allocations and further strengthen its hybrid models. In addition to its main markets, namely Japan and the U.S., Honda will enhance the model lineup and cost competitiveness in India.
The company is expected to record heavy losses, and to improve profitability of its automobile business it will improve its lineup by introducing next-gen hybrid models.
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