Honda cancels three US-made electric vehicles amid China competition

Honda’s problems are bigger than the US government’s anti-environmental heel turn. Its other problem is in China, where it admits it just can’t compete. Chinese customers don’t care about efficiency or interior space; they want software features, and plenty of them.

And they want them regularly updated, too. “This has intensified the competition due to the rapid emergence of newer EV manufacturers that leverage their short product development cycles and strengths in the area of software-defined vehicle (SDV) technologies, including advanced driver-assistance systems (ADAS),” Honda says.

It just isn’t able to match that rate of development or offer vehicles in China that were better value for the money, resulting in a decline in competitiveness. Unlike China and the EU, US demand for EVs is weak and has been undermined by the ending of the federal clean vehicle tax credit incentive, and launching the Honda 0s and the new RDX would simply compound Honda’s losses.

United States, China

honda, electric vehicles, evs, china, sdv, adas, tax credit, rdx, competition, software features