
Honda Attributes $15 Billion Canadian Investment Stall to EV Slowdown | Carscoops
The investment was previously promoted by Justin Trudeau as the largest automotive investment in Canada's history.
Honda has postponed its $15 billion investment in Canada due to a decrease in EV demand.
This delay impacts the plans for a facility that would produce 240,000 electric vehicles and batteries.
EV sales continue to grow in Canada and the US, albeit at a slower pace than anticipated.
In April of the previous year, Honda announced a plan to invest CA$15 billion (US$11 billion) into a comprehensive electric vehicle supply chain in Canada, which included an EV manufacturing plant and a dedicated battery facility in Ontario. Fast forward a year, and the automotive sector has shifted significantly, partly due to Donald Trump’s return to the presidency. Consequently, Honda is now deferring its Canadian EV investments by roughly two years.
In a letter to Honda shareholders, the company indicated that the postponement was due to the current decline in EV demand. They assured investors that they are closely monitoring market developments but did not specify a timeline for when the project may resume.
Honda’s CEO, Toshihiro Mibe, mentioned during a quarterly earnings briefing that the company needs to "observe what is happening" over the next two years before making definitive decisions regarding the project schedule. Meanwhile, Honda Canada spokesperson Ken Chiu informed CTV News that there are no intentions to reduce local production or jobs despite the delays.
While Honda claims the delay stems from a drop in EV demand, the truth is that EV sales are still increasing in both Canada and the US. Battery-electric vehicles represented 11.4% of all new vehicle sales in Canada last year, and 8.1% in the US. Although demand hasn't surged as quickly as many anticipated, prompting automakers to reassess their EV strategies, electric vehicles are not losing popularity.
Honda's CA$15 billion investment was previously celebrated by former Prime Minister Justin Trudeau as the “largest auto investment in Canada’s history.” The initial plan included a battery facility with an annual production capacity of 36 GWh and an EV assembly plant that could produce up to 240,000 vehicles annually beginning in 2028.
In light of these delays, Honda also confirmed it would relocate some CR-V production to its facility in Ohio to lessen the effects of President Trump’s tariffs on the company's operations.
“There is potential to increase production capacity in the United States, and we are looking into the implications of that,” Toshihiro Mibe said. “If the tariff measures remain in place long-term, we will need to expand our production capabilities in the US.”



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Honda Attributes $15 Billion Canadian Investment Stall to EV Slowdown | Carscoops
Justin Trudeau had previously emphasized that the investment represented the largest automotive investment in the history of Canada.