The Honda sedan and Acura SUV are set to launch within two years.
Both incorporate a next-generation hybrid system and fresh platform.
Fuel economy expected to rise 10 percent over existing hybrids.

Honda's delayed electric vehicle strategy has hit significant roadblocks. In recent months, the company axed the 0 Sedan, 0 SUV, Acura RSX, and the two Afeela vehicles from its Sony partnership. Now, Honda is redirecting resources toward advanced hybrids that pair enhanced internal combustion engines with electric motors.

At today's business briefing, prototypes of two key models took center stage, outlining the path forward. Labeled as near-production prototypes rather than show cars, the Honda sedan and Acura SUV are slated for sales within two years. Though specifics are limited, both employ Honda's upcoming hybrid powertrain and are confirmed for the U.S. market - a detail evident from the orange side markers.

Honda plans to introduce 15 vehicles with this new hybrid technology by March 2030, prioritizing North America. The sedan's angular profile and steeply raked roof echo the defunct 0 Sedan, while the Acura SUV nods to the canceled RSX. They appear showroom-ready, yet full dealer availability awaits until 2028.

Honda Targets the World's Most Efficient Powertrain

These models will debut Honda's latest hybrid system, promising over 10 percent greater efficiency than the 2023 version. With a strong U.S. emphasis, expect many to be SUVs equipped with all-wheel drive powered by electric motors.

A dedicated new platform is under development to shed weight and boost economy, alongside a projected 30 percent cost reduction. Honda claims hybrids from 2027 will feature the planet's most efficient powertrain, backed by a 4.4 trillion yen investment - roughly $28 billion - in gas and hybrid projects over the next three years.

Share your thoughts!

In parallel, Honda aims to offset EV cancellation costs via fresh offerings from its brands. Electric development persists cautiously, with 0.8 trillion yen - about $5 billion - allocated for future battery cars.

Our Perspective: Honda is repurposing EV budgets for superior hybrids. Success remains uncertain as U.S. EV sales cool, even as worldwide adoption accelerates.

Honda has not abandoned electrics entirely, planning to offer them in Japan, Asia, and beyond while watching U.S. trends closely.