Honda boss Takeo Fukui has announced the company will focus future developments on environmental initiatives and the NSX supercar will be the first casualty of the new strategy.
Fukui said Honda must focus all its resources on hybrid technology, saying it was 'the most realistic path for CO2 reduction at this moment'.
He also announced that further development work on the Ferrari and Porsche-rivalling NSX would stop with immediate effect.
The V10-engined supercar would have been the most powerful production car that Honda had ever produced, and was due to go on sale in 2010.
The original NSX became a supercar icon after being developed by triple Formula One world champion Ayrton Senna.