By Abhirup Roy and Kantaro Komiya
LAS VEGAS (Reuters) -Honda Motor will be cautious about starting production of new electric vehicles due to uncertainty about President-elect Donald Trump's industrial policy, a senior executive of the Japanese automaker said on Tuesday.
The remarks from the second-biggest Japanese carmaker highlight how global businesses are staying vigilant against the unpredictable U.S. policies as Trump takes office on Jan. 20.
"Because of Trump's initiatives, we might be very careful how we would start production" of upcoming electric models, Honda (NYSE:HMC) Executive Vice President Noriya Kaihara said at the CES technology conference in Las Vegas.
Honda will also be cautious about its battery plant plans in Canada, mindful of government regulations and EV market trends, Kaihara said.
"Maybe we might have to delay our start of the production of the EV models somehow," he said.
Earlier at CES, the automaker unveiled prototypes of upcoming Honda 0 electric cars, including an SUV model that will be introduced in the North American market in the first half of 2026.
Honda 0 models will be equipped with "eyes-off" level autonomous driving technology and will later be available in global markets including Japan and Europe, the company said.
Honda aims to sell only EVs and fuel cell vehicles by 2040, although it is also upgrading hybrids as a near-term linchpin for the U.S. market amid a stagnating EV growth.
The comeback of Trump complicates the EV transition plans and Americas business of Honda, along with other global carmakers like General Motors (NYSE:GM) and Stellantis (NYSE:STLA).
In November, Honda Chief Operating Officer Shinji Aoyama said the automaker may have to think about shifting production if the U.S. were to impose permanent tariffs on vehicles imported from Mexico as touted by Trump.
On merger talks with Japan's third-largest carmaker Nissan (OTC:NSANY), Kaihara said Nissan has "a little bit overcapacity in North America" and may cut some workforce there, while declining to comment on discussion details.