Honda Canada has indefinitely suspended its planned Ontario electric vehicle value-chain investment, including a proposed new EV plant in Alliston, Ont., as the automaker reassesses its global strategy amid changing market demand.
The company said the decision does not affect current jobs or production at its existing Alliston manufacturing campus, where Honda continues to build the Civic and CR-V. Hybrid models remain a major part of Canadian production and continue to see strong demand.
Honda said the suspension reflects changing business conditions, a revised external resource strategy, and shifting customer demand in the electric vehicle market. The company described the decision as part of a wider review of its global procurement and manufacturing plans.
The proposed value-chain project included battery production and a new EV assembly line. It had the potential to create 1,000 new manufacturing jobs in Alliston, Ont.
Both the federal and Ontario governments had committed future funding for the project, but Honda confirmed no public money was transferred.
Honda stressed its current Canadian operations remain unchanged. In 2025, a company spokesperson said Honda built about 400,000 vehicles in Canada, including 198,000 Civic units and 202,000 CR-V units.
More than 60 per cent of those vehicles were hybrids. Honda also said all Civic sedans and CR-V models sold in Canada are built domestically.
The automaker said its long-standing “build where we sell” strategy gives it flexibility as market conditions change, while helping maintain stability for its Canadian workforce.
Honda has operated in Canada since 1986. The company said it will continue to monitor market conditions while reviewing its long-term plans.
