Criticism has emerged that Honda's North America electric-vehicle strategy is being shaken by policy changes in the U.S. market and weak sales.

CleanTechnica, an electric-vehicle specialist outlet, reported on May 16 that Honda had until recently made EV development and growth a core future strategy, but it has not delivered results as expected amid rapid changes in the U.S. market environment.

The issue is not limited to Honda. Automakers are booking large losses and asset impairment charges in their EV businesses, but critics say weak sales also reflect a deteriorating market environment and a lack of effective strategies to sell EVs.

In the U.S. market in particular, critics said there is a sizable amount of EV advertising but it does not adequately convey key benefits consumers can feel. Many ads are not much different from those for internal combustion vehicles, or stop at showing a car plugged into a charger. They said EV-specific advantages such as the convenience of charging at home, not having to find gas stations, instant acceleration, one-pedal driving and fuel-cost savings are not being sufficiently highlighted.

Critics also said consumers enter the purchase stage without viewing EVs as products with distinct value. They added that this information gap is not being properly addressed at the point of sale either. They said there are not many cases of dealers actively explaining charging convenience or long-term cost savings.

The problem is also linked to structural limits in the diffusion of new technology. New technologies such as EVs are hard to scale the market with only early adopters, and clear differentiation from existing vehicles or cost advantages must be communicated to attract mainstream consumers. Critics said neither automakers nor distribution networks are delivering that message sufficiently.

Honda's situation is cited as a case that encapsulates these structural problems. The Wall Street Journal said Honda has maintained profitability through multiple crises, including the global financial crisis, natural disasters, safety issues and the pandemic, but has been significantly shaken by changes in the U.S. EV market. It also reported that Honda said it was "facing its biggest challenge in about 70 years since listing as the fifth-largest Japanese automaker by U.S. sales." In the U.S. market, tariffs are squeezing profitability, and the rise of emerging Chinese companies is also becoming a new threat. There is also an assessment that its North America EV strategy is effectively being shaken.

Honda's delayed response is also seen as part of the backdrop. Honda has had an image as an energy-efficient vehicle brand, but it has been criticised for failing to secure leadership in the early EV market. It has been assessed as slow to launch models and reluctant to hold open discussions about its EV strategy.

Limits in its regional strategy have also been cited. Honda is highly dependent on the U.S. market, while its shares in China and Europe are relatively low. However, the shift to EVs is already progressing on a global level, and since the U.S. has not been the region leading the EV market over the past decade or so, analysts say a U.S.-centric strategy instead constrained its response.