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Why is Honda Fit being discontinued?

The Honda Fit is being discontinued in North America after the 2020 model year as Honda shifts its focus to larger, more profitable models. In other regions, the same car continues to be sold under the Jazz name.


What’s driving the decision


The move reflects a combination of market trends and corporate strategy. Here are the main factors behind Honda’s decision to end the Fit in key markets.



  • Shifting consumer demand away from subcompact hatchbacks toward crossovers and SUVs, especially in the United States.

  • Thin profit margins for small cars compared to larger, more in-demand models, making the Fit less attractive from a financial perspective.

  • Rationalization of Honda’s global lineup to streamline engineering, platforms and supply chains ahead of electrification.

  • Reallocation of manufacturing capacity to higher-demand vehicles and electrified models to improve overall profitability.

  • Regulatory and portfolio considerations that complicate maintaining a budget hatchback in a crowded segment.


Taken together, these factors made continuing to offer the Fit less viable in core markets, prompting Honda to end U.S./Canada sales while keeping the model available elsewhere where demand remains steadier.


Where the Jazz lives outside North America


In markets outside North America, the car continues to sell under the Jazz name, often with ongoing updates and hybrid options. Here’s a snapshot of where the model remains available and how it’s positioned.



  • Europe: The Jazz remains a staple subcompact hatch in many markets, serving as Honda’s entry point in the small-car segment.

  • Japan: The Jazz is a common model with regular refreshes and hybrid variants.

  • Asia: The Jazz/Fit is offered in several countries, including India and various Southeast Asian markets.

  • Latin America and the Caribbean: The Jazz/Fit remains available in multiple countries as an affordable, practical hatch.

  • Oceania (Australia and New Zealand): The Jazz is widely sold as a compact, versatile option.


For buyers abroad, the Jazz continues to fill the same role the Fit did in many households—a compact, practical hatch with flexible interior space and solid efficiency.


What Honda plans next


With the Fit no longer offered in North America, Honda is leaning more heavily into its crossover/SUV lineup and electrified models. The company has signaled a broader push toward hybrids and full EVs across its global range, along with ongoing efforts to simplify platforms and reduce development costs while expanding connectivity and safety features.



  • A greater emphasis on crossovers and SUVs, which have driven much of Honda’s recent sales growth.

  • Expansion of electrified powertrains, including more hybrids and full EV options across core models.

  • Continued platform rationalization to streamline production and speed up the introduction of new technologies.


While the Fit has ended in North America, Honda maintains a focus on offering practical, affordable choices in markets where demand remains stable, alongside a clear commitment to electrification and modern, efficient small cars where appropriate.


Summary


Honda’s decision to discontinue the Fit in the United States and Canada stems from shifting consumer tastes toward larger vehicles, tighter margins on subcompact cars, and a strategic pivot to SUVs and electrified models. The same car continues to be offered in many other regions as the Jazz, preserving a compact hatch option while Honda accelerates its broader transition to a more electrified, SUV-dominated lineup.

Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.