Honda Canada Delays $15B Electric Vehicle Project in Ontario Amid Market Uncertainty

Honda Canada is putting the brakes on a major $15-billion electric vehicle investment in Ontario, citing weaker-than-expected EV demand across North America. The ambitious project, touted as one of Canada’s largest EV manufacturing initiatives, will now be delayed by approximately two years.

Spokesperson Ken Chiu confirmed Tuesday that the automaker is reassessing its timeline for the Ontario EV value chain investment. “Due to the recent slowdown in the EV market, Honda has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada,” he said. Chiu noted that the company will continue to monitor market conditions and adjust its plans accordingly.

The pause affects a slate of interconnected projects, including the conversion of Honda’s vehicle assembly plant in Alliston, Ontario, and the construction of a nearby EV battery facility. Two additional sites, dedicated to producing key battery components, are also on hold.

Despite the delay, Honda says the move will not affect current operations or staffing levels at the Alliston plant, which employs around 4,200 people. The now-postponed project had been projected to create an additional 1,000 jobs and was scheduled to begin rolling out EVs by 2028, with an annual production target of 240,000 units.

The investment had positioned Ontario as a rising hub for EV production, drawing comparisons with the province’s earlier automotive manufacturing boom. However, the delay signals growing caution among automakers amid slowing consumer interest, high battery costs, and infrastructure hurdles.

Honda’s decision echoes a broader trend across the industry, where several manufacturers have scaled back or delayed EV rollouts in response to softer-than-anticipated demand.

As the global transition to electric mobility continues to evolve, Honda’s move serves as a reminder that even the most ambitious plans remain vulnerable to shifting market dynamics.