Industry Minister Mélanie Joly says Honda Canada remains "fully committed" to major electric-vehicle investments in Canada after the company announced Tuesday that it was pausing a multibillion-dollar EV project in Ontario.

Honda delays its $15 billion investment in Canada due to slowing EV demand. The postponement affects plans for a 240,000-vehicle EV plant and battery facility. EV sales continue to rise in Canada and the US,

Honda Motor ( NYSE: HMC) announced on Tuesday a two-year postponement of its ambitious $15 billion electric vehicle investment project in Ontario. The Japanese automaker pointed to a slowdown in global EV demand and mounting economic uncertainty linked to new U.S. tariffs on imported vehicles.