On May 13, Honda announced that it is postponing its previously announced plan to establish a comprehensive electric vehicle (EV) value chain in Canada by approximately two years. The decision comes in response to the current slowdown in EV demand. The company aims to strengthen its EV supply chain in North America during this period. Honda stated that it will closely monitor market demand and announce a specific timeline for resuming the project once it is finalized.

Additionally, Honda projected a 59% decline in its profit for the current fiscal year. The company attributed this drop to the impact of tariffs imposed by former U.S. President Donald Trump and the strengthening of the Japanese yen, which offset gains from the strong demand for its hybrid models. Honda expects its operating profit for the fiscal year ending March 31, 2026, to reach 500 billion yen (approximately 24.32 billion yuan at current exchange rates), compared to 1.21 trillion yen in the just-concluded fiscal year.

This strategic delay reflects Honda’s cautious approach to navigating the evolving EV market and broader economic challenges.