Honda Motor Co. has decided to pause its plan to build a new electric vehicles (EV) factory in canada. This descision comes because demand for EVs in the united states is growing slower than expected.
Earlier, the company had also canceled three EV models that were planned for North America. Honda was planning to invest about 15 billion Canadian dollars (around $11 billion) to set up the EV plant and a battery factory in Canada.
The company had already delayed the start of production at this plant from 2028 by about two years. Now, with weaker demand, it has chosen to put the project on hold completely for the time being.
Honda is expected to share more details about this decision when it announces its financial results on May 14.
Because of changes in its EV strategy, the company also expects a loss between 420 billion yen ($2.6 billion) and 690 billion yen for the financial year ending in March. This shows that shifting to electric vehicles is proving challenging and costly for the company right now.
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