🧠 Food for thought

Implications, context, and why it matters.

Setbacks in China and North America drove the EV pullback

• Honda changed course after scrapping three EVs planned for North America, the Honda 0 SUV, Honda 0 Saloon, and Acura RSX 1.
• In China, Honda lost ground to newer EV rivals in software-defined vehicle (SDV) technology. These are cars whose features rely heavily on software. That includes advanced driver-assistance systems (ADAS), which help with lane-keeping and braking 1.
• Honda still kept its u00a52 trillion investment plan for software-defined mobility. Honda R&D treats that work as a central focus 2.
• S&P Global Ratings, a credit ratings agency, cut Hondau2019s long-term rating to BBB+ from A-. It expects EV losses, tariffs, and tougher competition to weigh on margins and cash flow until recovery starts in 2027 3.

Investors backed the shift as India moved to the center

• Honda shares rose 4.2% in Tokyo after the change 4.
• The wider car industry is also reworking its plans. Carmakers are chasing a more profitable mix of electric, hybrid, and combustion-engine vehicles 3.
• Honda now puts India alongside North America and Japan as one of its three core global markets 5.
• Honda said its long-used “global standard” approach, which aimed for worldwide consistency, may not have matched Indian demand. India-focused strategic models are due from 2028 5.