Japanese auto giant Honda has pumped the brakes on its $15 billion plan to build an electric vehicle supply chain in Canada, blaming "changing market conditions” for a decision that

Honda Canada has announced a two-year pause on its Ontario investments that included retooling an assembly facility and building an EV plant.

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.

It’s tough being a legacy Japanese carmaker these days, what with a plethora of new models springing forth in every possible manner from Chinese players, swarming the market at speeds that sometimes defy belief.

Honda Motor has delayed its planned $15bn electric vehicle (EV) battery and assembly facility in Ontario by approximately two years, citing slowing EV demand and tariff impacts, as reported by Reuters .

During the announcement of its 2024-2025 fiscal year financial results on May 13, Honda CEO Toshihiro Mibe stated that in the current fiscal year, which began on April 1 and will end on March 31 next year, Honda expects the impact of the Trump Administration’s tariff policy to hammer 650 billion yen (~$4.34 billion) off its operating profits.

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