Toronto, May 13, 2025 — In a significant setback to Canada’s electric vehicle manufacturing ambitions, Honda Canada has announced a two-year postponement of its $15-billion EV investment project in Ontario, citing a slowdown in the global EV market.
The project originally unveiled in April 2024 was to include a retooled vehicle assembly plant in Alliston, a new EV battery plant, and two battery component facilities across Ontario. It was projected to create 1,000 new jobs and retain 4,200 existing positions, with an output capacity of 240,000 vehicles annually by 2028.
“This delay does not affect current employment at the Alliston plant,” said Honda Canada spokesperson Ken Chiu, who added that the company will continue to monitor market conditions before adjusting project timelines.
The massive project had garnered support from both the federal and provincial governments, with Ottawa committing $2.5 billion in tax credits, and Ontario pledging up to $2.5 billion in total support.
The delay reflects broader uncertainty in the EV sector, where consumer demand and market growth have slowed, prompting automakers to reassess large-scale infrastructure investments.
Honda Canada Delays $15 Billion EV Investment in Ontario by Two Years Amid Market Slowdown
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