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May 14, 2026 2:44 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press
Honda Motor Co. has indefinitely suspended plans for its proposed $15-billion electric vehicle project in Alliston, Ontario, a move that raises new questions about the pace of Canada’s EV manufacturing expansion.
The company announced the decision Thursday, citing changing market conditions and slower consumer demand for electric vehicles. The proposed project was expected to create about 1,000 jobs in the region.
Honda said the decision will not affect workers or production at its existing manufacturing facility in Alliston, where current operations will continue as planned.
The project had previously received support commitments from the federal and Ontario governments, including an estimated $5 billion in direct and indirect public assistance tied to the development of Canada’s electric vehicle supply chain.
The announcement is significant for Canada’s auto sector, as Honda is the country’s second-largest automaker after Toyota. The company produced more than 400,000 vehicles in Canada last year.
