Honda shifts to hybrids as U.S. EV sales drop 30% in June
The Prologue was announced in late 2022, when automaker enthusiasm for battery-electric vehicles was at a peak. Honda, which had been late to the EV market, partnered with General Motors to use the American automaker’s electric hardware and produced the SUV at GM’s plant in Coahuila, Mexico. The Prologue went on sale in late 2024.
Honda sold about 40,000 Prologues last year, roughly a tenth of its top-selling gasoline and hybrid CR-V. Woelfer said he believes certified pre-owned Prologues will remain a desirable option for customers seeking an electric Honda, and that EV buyers may turn to Honda’s hybrid offerings in the meantime.
The cancellation of the Prologue follows Honda’s earlier decision to scrap plans for three new electric models in Ohio and Canada. The Wall Street Journal reported that the termination of those plans led to $10 billion in costs and contributed to Honda’s first full-year loss as a publicly listed company in 2025.
Honda is now focusing on expanding its hybrid lineup in the U.S. market. “It’s allowing us to pivot where we expect the consumer to be, which is expanding that hybrid lineup,” Woelfer said. He added that the move “doesn’t mean EVs aren’t part of the future for us.”
U.S. EV sales dropped 30% year-over-year in June, according to Motor Intelligence data. The Trump administration ended the federal EV tax credit program last year and relaxed the stringent fuel-economy rules that had been expected to push automakers toward electric vehicles. Most major automakers in the U.S., including Volkswagen, Stellantis, and Ford, have pulled back from once-aggressive plans to increase EV production, the Wall Street Journal reported.