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.

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.

The development won’t affect jobs at Honda’s Alliston, Ont., plant, but it comes at a turbulent for the province’s automotive industry

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 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.

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