Honda Postpones $15B Ontario EV Plant Indefinitely

Honda Motor Co. has indefinitely postponed construction of a $15 billion Canadian dollar electric vehicle and battery manufacturing complex in Alliston, Ontario, amid sluggish demand and shifting policies in North America.

The project, first announced in April 2024, was set to include vehicle and battery plants with an annual production capacity of 240,000 units. It had secured land and promised support from federal and Ontario governments totaling $5 billion, though no funds have been disbursed, according to Ontario Economic Development Minister Vic Fedeli. Honda delayed the timeline by two years in May 2025, citing slower-than-expected electric vehicle market growth, and will now reassess based on future conditions.

The decision stems from weakened U.S. electric vehicle sales, which dropped 36 percent year-over-year in the fourth quarter of 2025, while hybrids captured a record 19 percent market share, up from 11 percent. U.S. policy changes, including the elimination of electric vehicle tax credits and relaxed fuel efficiency standards, have raised consumer costs and eased pressure on automakers to accelerate zero-emission production. Tariffs and trade uncertainties have...