Honda Motors will suspend plans to build an electric vehicle plant in Canada after slow U.S. demand pushed the Japanese automaker “to put hybrids at the centre of its North American strategy,” Nikkei Asia reported on Tuesday.

CTV News reached out to Industry Minister Melanie Joly for comment on the report, to which her office said the global automotive sector is experiencing “significant change.”

“American tariffs and changes to U.S. domestic policies are creating real pressures for automakers, prompting some to delay or scale back investments in electric vehicle and battery projects,” the office of the minister said in a response.

The plant, which Honda had expected to invest a total of $15 billion into, was slated to begin operating as early as 2028.

“Canada will continue to support and protect existing automotive facilities by mitigating tariff pressures and sustaining the production of fuel-efficient vehicles, while positioning the sector for long-term growth, resilience and global competitiveness,” Joly’s office added in its response.

In a statement to CTV News, Honda Canada said the company has “nothing to report at this time.”

In May 2025, Honda announced it would delay the project for two years, with Honda chief executive Toshihiro Mibe saying the company would examine where the EV market is before deciding whether to move forward with the project.

“What happens after two years and the starting time of the project, we have to observe what is happening and ultimately make the decision,” he said, based on translated remarks.