Honda Motor is reportedly planning to cease the development of its $15 billion electric vehicle (EV) complex in Canada. The Japanese automaker had initially paused the Alliston, Ont., project in May last year, indicating a review of the EV market’s status after two years before making a decision. Reports suggest that due to sluggish demand for EVs in the U.S., Honda is shifting its focus to making hybrids the centerpiece of its North American strategy.
Although Honda Canada declined to confirm the news, provincial and federal officials mentioned being in regular communication with the company but did not confirm if a final decision had been communicated. The project, announced in 2024, was set to include a vehicle assembly plant and battery production facilities, with anticipated funding of over $5 billion from federal and provincial sources.
Ontario Economic Development Minister Vic Fedeli emphasized that public funds would only support Honda if the project proceeded. He noted that Honda had assured its commitment to Canada despite challenges in the auto sector due to tariffs and global uncertainties.
In light of the reported decision to halt development, it joins a list of other EV projects that have been abandoned in Canada, such as General Motors ending production of its BrightDrop electric delivery van and Ford Motor Co. shifting focus from EVs to pickup truck production.
Conservative MP Adam Chambers criticized the Liberal government’s EV strategy, suggesting a need to reassess policies and prioritize access to the U.S. vehicle market to sustain the Canadian auto industry. Honda, which produced over 400,000 vehicles in Canada last year, including conventional gas and hybrid models, remains a significant player in the country’s automotive sector.