BusinessJapanese news media reported that Honda Motor plans to indefinitely halt the development of its $15-billion electric vehicle complex in Canada, though Honda Canada said they had nothing to report at this time. Ottawa acknowledged automakers face "significant challenges," but did not say whether the company had updated them on those plans.Automaker paused development of EV supply chain last May, saying it would review EV market in 2 yearsIan Bickis · The Canadian Press · Posted: May 06, 2026 4:14 PM EDT | Last Updated: May 6Listen to this articleEstimated 4 minutesThe audio version of this article is generated by AI-based technology. Mispronunciations can occur. We are working with our partners to continually review and improve the results.Honda employees work along the vehicle assembly line in Alliston, Ont., in 2024. Japanese media reported that Honda plans to halt development on its $15-billion electric vehicle complex in Ontario. (Nathan Denette/The Canadian Press)Honda Motor plans to more definitively halt development on its $15-billion electric vehicle complex in Canada, according to multiple news reports by Japanese media.The Japanese automaker paused development of the Alliston, Ont., project in May last year, saying at the time that the company would review where the EV market was in two years before deciding the future of the project.Sluggish U.S. demand for EVs is leading the automaker to freeze the Canadian EV investment and make hybrids the centre of its North American strategy, according to the reports.Asked to confirm the news, Honda Canada said in a statement that it had nothing to report at this time.Provincial and federal officials say they're in regular contact with Honda, but did not say whether they had been told such a decision had been made.Announced in 2024, the project would have included a vehicle assembly plant as well as battery production facilities. It was set to receive upwards of $5 billion in federal and provincial funding.Ontario Economic Development Minister Vic Fedeli said no public funds would go to Honda unless it went ahead with the project. Speaking after question period in Toronto, he said Honda has given assurances of its commitment to Canada."They've been very clear that there are challenges ahead in the auto sector, especially because of the tariffs and of the global uncertainty, but that they're here to stay."WATCH | Honda pauses investment in Canadian EV plants (May 2025):Honda pauses $15B investment in Canadian EV plantsMay 13, 2025|Duration 3:54Japanese automaker Honda says it's pausing a $15-billion investment plan that would have seen four new electric vehicle factories built in Ontario. Honda says it's because of slow market growth in the EV sector due to Trump's trade war.