Honda posts first annual loss in nearly 70 years on EV writedowns, scraps EV sales goals
The automaker said EV-related losses reached 1.45 trillion yen as it shifts resources toward hybrids, motorcycles and other businesses.
- On Thursday, May 14, 2026, Tokyo-based Honda Motor posted its first annual loss in nearly 70 years, reporting a 423.9 billion yen deficit driven by US tariffs and more than $9 billion in electric-vehicle restructuring costs.
- President Donald Trump's administration blocked California's electric vehicle mandates and withdrew federal incentives, prompting Honda to abandon multiple EV projects including a joint venture with Sony Corp.
- Tariffs on imported autos and parts, currently at 15%, further dented profitability as the company sold 3.4 million vehicles globally, down from 3.7 million the previous year.
- Chief Executive Toshihiro Mibe outlined plans to prioritize hybrids and gasoline-engine models as strong motorcycle sales in India and Brazil, totaling 22.1 million units, provided critical financial relief.
- Honda forecasts a return to profitability in 2026, projecting a 500 billion yen profit through cost-reduction measures despite rising material prices expected to cause a 313 billion yen operating profit hit.
76 Articles
76 Articles
Automaker posts first annual loss in nearly 70 years
TOKYO, Japan — Honda Motor Co. reported its first annual loss in nearly 70 years, as billions of dollars in charges tied with a retreat from its electric vehicle strategy wiped out what otherwise would have been a profitable year.
Demand for electric vehicles has fallen short of expectations, and Japanese car giant Honda has paid a record price for it. The country's second-largest automaker reported an operating loss of $2.68 billion for the fiscal year ending March 2026.
The projection comes after the assembler recorded net loss in the last fiscal year, the first since its opening of capital, pressed mainly by losses related to electric vehicles
Changing US emission standards and lowering sales of electric cars have overturned the plans of major car manufacturers. One of the largest companies in the industry has become the most recent victim. Japanese car manufacturer Honda announced its first annual loss in 1955, after registering a decline in profits close to...
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