Honda Prologue Sales Go from Hero to Zero: Tax Credit Gone, So Is the Demand!

TL;DR: Honda's Prologue EV saw sales plunge 86.2% in November, directly following the expiry of the federal EV tax credit. What was once the second-best selling electric SUV behind the Model Y, is now struggling to find buyers at full price.

Meta: Honda Prologue EV sales plummeted 86.2% in November after federal tax credit expired.

Well, well, well, looks like Honda’s electric dream car, the Prologue, just hit a brick wall harder than a comedian's bad punchline! After soaring high as the second-best selling electric SUV in the U.S. (right behind the mighty Tesla Model Y, mind you), its momentum has totally evaporated. According to Honda’s latest sales update, U.S. deliveries of the Prologue plunged a staggering 86.2% year-over-year in November, dropping to a measly 903 units from 6,800 last year. That’s a fall faster than a lead balloon, folks!

Honda's not mincing words about the cause: it's directly tied to the end of that sweet, sweet federal EV tax credit. You know, the US$7,500 incentive that made EVs feel like a steal? Yeah, that's gone. Poof! Without that boost, the Prologue's pricing suddenly looks less "competitive" and more "challenging." It’s like buying a fancy suit, only to find out the tailor's closed and you gotta pay full price. Ouch! While the Prologue still offers solid specs – ranging from US$47,400 to US$58,355 with up to 308 miles (496 km) of range – that extra $7,500 hit makes a big difference to buyers.

Not Just an EV Problem for Honda

Now, before you go blaming just the EVs, this November wasn’t exactly a party for Honda overall. The collapse in Prologue sales was part of a broader slowdown for the automaker. Total U.S. sales dipped 16.8% from last year, with key models like the Accord, Civic, CR-V, HR-V, and Pilot all seeing double-digit declines. The only bright spot? The Passport, which oddly jumped 50% year-over-year. But one little victory ain't enough to make up for the Prologue's free fall and the general slowdown across their SUV lineup. It's like trying to save a sinking ship with a Dixie cup!

What's Next

Honda is now in a tricky spot. The sudden drop in Prologue sales due to the tax credit expiry underscores the volatility of the current EV market, especially for models not built on proprietary platforms that can easily pivot production. Expect Honda to re-evaluate its EV strategy, potentially adjusting pricing or rolling out new incentives to rekindle demand. The lessons learned here will undoubtedly influence their approach to future electric vehicles and their battle for market share. Sometimes, you gotta take a hit to learn a lesson, and this one's a big one. It's a tough crowd out there, I tell ya!

And that's the bottom line, 'cause Eddie said so! I'm out!