The Party’s Over: Honda Prologue Sales Crash 86% After EV Tax Credit Dies.
Posted on 12/3/2025 by Agent001
In the electrifying world of automotive transitions, few stories capture the volatility of the EV market like that of the Honda Prologue. Launched in March 2024 as Honda's first mass-market all-electric SUV, the Prologue burst onto the scene with promises of reliability, spaciousness, and up to 308 miles of EPA-estimated range. Priced starting at $47,400 for the base EX trim, it quickly became a darling for families eyeing a greener upgrade from gas-guzzling crossovers. But what began as a sales sprint has devolved into a disheartening crawl, epitomized by November 2025's catastrophic 86.2% year-over-year plunge to just 903 units—down from 6,800 the prior November.
The Prologue's honeymoon phase was bolstered by the full $7,500 federal EV tax credit under the Inflation Reduction Act, early adopters flocked to dealerships. By July 2024, monthly sales hit 3,458 units, contributing to a year-end total exceeding 33,000—making it the second-best-selling electric SUV in the U.S., trailing only Tesla's Model Y. Honda's reputation for durable, no-fuss vehicles played a key role, as did the Prologue's Ultium battery platform co-developed with General Motors, offering smooth performance and a 17.7-inch infotainment screen. Analysts hailed it as a bridge for hesitant buyers: practical like a CR-V, but zero-emission. November 2024 alone saw 6,800 deliveries, fueling Honda's electrified sales record of over 38,000 units that month.
Then came the cliff. On September 30, 2025, the federal EV tax credit expired under the One Big Beautiful Bill Act, stripping away the incentive that had effectively lowered the Prologue's net price to around $40,000. This "leasing loophole" closure hit hard, as many credits were routed through leases to bypass income caps. Without it, the Prologue's MSRP—now $47,400 to $58,355 depending on trim—feels steeper amid cooling EV demand and rising interest rates. Honda scrambled with discounts approaching $10,000, yet November's 903 sales underscore the credit's outsized influence. Broader Honda U.S. sales dipped 16.8% to 91,582 units, with trucks like the CR-V faring better at 29,421.
This stall raises red flags for Honda's EV ambitions.