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In what was once hailed as the biggest auto investment in Canadian history, Honda has just hit pause on its $15 billion electric vehicle project in Ontario. The plan, announced in 2023, aimed to launch a 240,000-vehicle EV factory and a massive battery plant by 2028. But now? It’s delayed by approximately two years.
Why? Slower-than-expected EV demand and the return of Donald Trump to the White House have made Honda rethink its EV rollout timeline.
Honda’s CEO Speaks
During a quarterly earnings press, CEO Toshihiro Mibe said that Honda will take the next two years to observe EV market trends before moving ahead. The company stressed that no local job cuts or production halts are planned—for now.
Meanwhile, Honda Canada spokesperson Ken Chiu confirmed to CTV News that while the delay is real, production remains stable.
⚡ EV Sales Rising
Ironically, EV sales are still climbing across Canada and the U.S. In 2023:
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11.4% of all new car sales in Canada were battery EVs
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8.1% in the U.S.
So why the delay? Industry experts believe it’s less about actual sales and more about shifting political winds and tariff risks under Trump’s administration. Honda’s now planning to shift some CR-V production to Ohio, hedging its bets in case tariffs hit hard.
Will This Hurt Canada’s EV Dreams?
The now-delayed plan included:
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A 36 GWh battery plant
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A 240K annual capacity EV factory
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Launch timeline: 2028
This project was praised by Prime Minister Justin Trudeau as a once-in-a-generation auto investment. Delaying it could mean lost momentum for Canada’s EV industry and increased reliance on U.S.-based production.
Midterm Strategy
Honda isn’t just delaying; it’s recalculating. Toshihiro Mibe stated that if Trump’s tariffs remain, Honda will likely boost production capacity in the U.S., especially at its Ohio plant. This shift could change the North American EV supply chain balance significantly.
What’s Next? A Lot Depends on Politics
This delay reflects a broader trend of automakers pulling back on aggressive EV goals amid market uncertainty and political shifts. While demand isn’t dead, the pace of adoption is causing companies to re-strategize investments.
Source Insight
As reported by Carscoops, Honda’s delay shows just how fragile EV strategy can be when caught between market forces and government policy shifts.
Conclusion
Honda’s $15 billion EV project delay in Canada may seem like a setback, but it reflects the complex balancing act automakers face in 2025. Between fluctuating demand, political changes like Trump’s return, and evolving global strategies, even giants like Honda are playing it safe.
