Back in 2023, Honda made a huge announcement — they were going to build a massive electric vehicle (EV) factory and battery plant in Ontario, Canada. It was a $15 billion plan, and everyone was pretty excited. The idea was to start rolling out around 240,000 EVs a year by 2028. But now, Honda’s saying “not so fast.” The project’s been delayed by about two years.
Why the sudden pause? Well, Honda says it’s a mix of a slower-than-expected demand for EVs and concerns around politics — especially now that Donald Trump is heading back to the White House. That’s made them rethink their whole timeline for rolling out EVs.
Honda’s CEO Explains the Delay
Honda’s CEO, Toshihiro Mibe, spoke during the company’s recent earnings update. He said they’re basically taking a step back to watch how the EV market changes over the next couple of years. The company isn’t canceling anything, just hitting pause to be cautious. They also made it clear — no layoffs are coming, and production in other areas is still moving as usual.
Ken Chiu, who speaks for Honda Canada, confirmed the delay to CTV News. He added that while the new project is pushed back, it doesn’t mean any of their current operations are being cut or stopped.
EV Demand Is Still Growing — So What’s the Problem?
Now here’s the strange part — even though Honda’s slowing down, EV sales in both Canada and the U.S. are actually going up:
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In Canada, about 11.4% of all new cars sold in 2023 were electric.
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In the U.S., it was around 8.1%.
So if more people are buying EVs, why is Honda holding off? Some experts think it’s not really about demand. It’s more about uncertainty around what’s going to happen next — especially with the possibility of new tariffs or trade changes under Trump’s administration. To play it safe, Honda is already planning to shift some CR-V production to its Ohio plant, just in case tariffs on Canadian-made cars go up.
Could This Hurt Canada’s EV Goals?
This project wasn’t just big for Honda — it was supposed to be a huge win for Canada’s EV industry. The plan included:
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A huge battery plant that could produce 36 gigawatt-hours of power.
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A car factory that could make 240,000 EVs a year.
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A 2028 target launch.
Prime Minister Justin Trudeau even called it a once-in-a-generation investment. So yeah, it’s a big deal. Now that it’s delayed, people are wondering if Canada might lose some of its momentum in becoming a major player in the EV world. There's also the risk that more of the manufacturing might move to the U.S. instead.
Honda’s New Game Plan
This isn’t just a delay — Honda’s rethinking its whole EV strategy. The CEO said if Trump brings in strict tariffs, it might make more sense to build EVs in the U.S., especially at the Ohio plant. If that happens, we could see a shift in how EVs are made across North America — with more focus on the U.S. and less on Canada.
This kind of move shows how fast things can change. Automakers like Honda have to adjust their plans based on not just customer demand, but also politics and trade rules. So even if people want EVs, companies still have to play it safe.
What Happens Now?
Right now, it’s a waiting game. Honda will watch the market for the next couple of years before making the next move. This whole situation shows how tricky it is to build a long-term EV plan when the future is so uncertain — not just because of technology or customers, but because of changing governments and global policies.
Even though this delay is disappointing for Canada, it’s not the end of the road. It just means Honda — like a lot of other companies — is being extra careful about where and how it spends big money on EVs.
