Honda Motor intends to officially stop the progress on its $15 billion electric vehicle site in Canada, as reported by various Japanese media outlets. The Japanese car manufacturer put a hold on the Alliston, Ont., project in May last year, indicating that a decision on the project’s future would be made after assessing the EV market in two years. Due to sluggish demand for electric vehicles in the U.S., Honda is shifting focus to hybrid vehicles and pausing the Canadian EV investment, according to the reports.
Honda Canada declined to confirm the news, mentioning that there were no updates to share at the moment. While provincial and federal officials stated ongoing communication with Honda, they did not confirm being informed of the decision. Initially announced in 2024, the project was supposed to feature a vehicle assembly plant and battery production facilities, with a significant portion of funding coming from federal and provincial sources.
Ontario Economic Development Minister Vic Fedeli emphasized that public funds would only support the project if Honda proceeded with it. He highlighted Honda’s commitment to Canada despite challenges in the automotive sector. Prime Minister Mark Carney acknowledged industry challenges but did not specifically address the Honda situation.
Amid significant changes in the automotive sector, prompted by U.S. policy shifts affecting EV adoption, Gabrielle Landry from the federal Industry Minister’s office emphasized the evolving landscape. Honda’s reported decision to halt the project aligns with other stalled EV ventures in Canada. General Motors ceased BrightDrop electric van production, Ford shifted focus from EVs to pickup trucks, and various battery-related projects were put on hold.
Conservative MP Adam Chambers criticized the government’s EV policy, suggesting a need to secure access to the U.S. vehicle market to support the Canadian auto industry. Despite challenges, Honda remains a significant player in Canada’s vehicle production scene, manufacturing over 400,000 vehicles last year, including gas and hybrid models of popular vehicles like the Civic and CR-V.
