Some Automakers Retreat from North American EV Market

April 2, 2026

Roberto Baldwin

A canceled vehicle is a pricey endeavor for an automaker. There are sunk costs (R&D, factory tooling, marketing, etc) that are likely never fully regained. Even if a vehicle enters the market as a hit, it might be years before that car, truck, or SUV truly turns a profit for the automaker. Now imagine if that vehicle is killed before ever rolling off a factory floor.

That's the case with Honda's 0 series EVs. The Japanese automaker canceled development of three EVs slated for North America. The trickle-down effect resulted in Sony's EV plans being dashed with the additional cancelation of the slightly odd Afeela sedan, and the recently unveiled SUV, which were to be built by Honda at its Ohio facility.

Honda is quick to point out that this news only affects North America. The automaker has joint ventures in China to build EVs and already has EVs on the market in Japan. More importantly, the company will continue to develop its solid-state battery for vehicles and other items manufactured by Honda.

For other automakers, some of their offerings just never caught on. For example, Hyundai announced that the Ioniq 6 will be pulled from the US market. The styling never quite caught on, and while the Ioniq 5 continues to garner impressive sales, the weirdly shaped sedan became stagnant. The Ioniq 6 N will stick around, but if you want a car that looks like a speedbump, you should move quickly.

Meanwhile, Ford could never quite figure out what to do with the F-150 Lightning. Multiple price changes and marketing a full-size pickup to an audience that enjoys talking about gas engines didn't help the pickup's sales in the long run. Instead, Ford is now working on a mid-size electric pickup that the company has said will cost $30,000 at launch.

Meanwhile, Volvo's long-delayed EX30 was finally put to rest after coming to market with a larger-than-anticipated price tag and a host of software bugs. Volvo says that the electric EX60 and EX90 are still coming to North America.

For some of these vehicles, an administration hostile to EVs and a whirlwind of confusing tariffs led to their downfall. Suddenly, a potentially profitable vehicle was unprofitable. For others, the market just shrugged and made different choices.

While some headlines construct a narrative of doom and gloom for EVs, the reality is far more nuanced. The relatively inexpensive Chevy Bolt is back (although weirdly for only 18 months, maybe) and, like the new Nissan Leaf, has garnered mostly glowing reviews. Rivian's R2 will come to market soon. Lucid is already showing off future models, and Slate seems to be on track for production of its mid-$20,000 pickup for the end of the year.

Let's not forget Toyota. A company that just a few years ago didn't seem very happy to have to build an EV, just dropped three on the market (BZ Woodland, C-HR, and 2027 Toyota Highlander EV), joining an updated BZ.

New EV sales have fallen, compared to 2025, by a whopping28 percent during the first quarter. Many bought EVs sooner than anticipated ahead of the expiration of incentives late last year. There might be a rebound, but economic headwinds have also affected gas car sales, which are also down from Q1 2025 by 6.3 percent.

Meanwhile, used EV sales are up 12 percent from Q1 2025. The demand seems to be there when the economics make sense.

The EV market is more challenging than ever, and that's led to some tough decisions by automakers. Yet for every canceled vehicle, a new vehicle is announced and headed to the market. Electrification is a long game. Some automakers are just playing it better than others.