Honda indefinitely suspends Canadian EV plant plan

Honda Canada says it has indefinitely suspended its plans for a $15-billion electric vehicle complex in Ontario.

The Japanese automaker said Thursday the decision does not affect the current employment or production levels at its existing manufacturing facility in Alliston, Ont.

Honda said it made the decision in response to evolving business conditions, a change in external resource strategy and shifting customer demand.

“Based on our revised strategic objectives, we have determined that an indefinite suspension of the value chain project is appropriate at this stage,” the company said in a statement. 

It added it will continue reviewing its future procurement and business strategies, while carefully monitoring market conditions.

Honda noted the new EV plant had the potential to create 1,000 incremental manufacturing jobs in Alliston.

Announced in 2024, the EV project would have included a vehicle assembly plant as well as battery production facilities. It was set to receive upwards of $5 billion in federal and Ontario funding.

Honda said Thursday that while the project had received funding commitments from both provincial and federal governments, no money has been transferred to the company.

Honda produced just over 400,000 vehicles in Canada last year, making it the second largest producer behind Toyota Motor Co. 

Production included both conventional gas and hybrid versions of its Civic and CR-V vehicles. 

This report by The Canadian Press was first published May 14, 2026.

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