Honda announced the postponement on Tuesday after forecasting a 59 per cent profit decline in the current fiscal year.

Honda has postponed a $15-billion electric vehicle project in Ontario, citing market demand, and is shifting some production of its popular CR-V model intended for the U.S. market to its Ohio plant because of tariffs.

Slower market demand, tariffs and evolving production strategies cited as some of the reasons why Honda is pausing its Canadian EV plans

Honda said its plan to build an EV supply chain in Alliston, Ont. — which was first announced in April 2024 — would be paused for about two years, due to uncertainty caused by tariffs.

Postponing the Canadian EV project is part of the automaker's effort to contain the damage from hefty U.S. tariffs on foreign-made vehicles. Honda said it expects its net profit to drop 70% to 250 billion yen, equivalent to $1.68 billion, for the year ending March 2026.

Ontario Premier Doug Ford says he will make sure auto companies, including Honda, follow through on their commitments to build cars in the province. His comments came after Honda announced it was putting its $15 billion electric vehicle (EV) supply chain project in Alliston,

The development won’t affect jobs at Honda’s Alliston, Ont., plant, but it comes at a turbulent for the province’s automotive industry

Honda Canada is postponing its $15 billion electric vehicle project in Ontario for approximately two years, pointing to weak EV demand and market uncertainty caused by US tariffs. The project, announced in April 2024,

Honda said it is delaying its scale-up in the community of Alliston, which includes a battery plant and retooled vehicle assembly line, for about two years as it monitors market conditions.

Postponing the Canadian EV project is part of the automaker's effort to contain the damage from hefty U.S. tariffs on foreign-made vehicles. Honda said it expects its net profit to drop 70% to 250 billion yen ($1.68 billion) for the year ending March 2026.