Overview
- Honda, which on Thursday reported its first annual loss since the 1950s, scrapped its plan to sell only electric vehicles by 2040 and put a planned EV and battery complex in Canada on hold.
- The pullback followed cancellations of three North American EV models that triggered about €7.1 billion in fourth‑quarter charges and a net loss of ¥423,941 million (about €2.3 billion) for the year.
- Executives said the company will redirect investment to hybrids, targeting 15 new hybrid models by around 2029–2030, with next‑generation systems starting to arrive from 2027 and two prototypes already shown.
- Honda projected a return to profit in the current fiscal year as it tightens costs, refocuses its product mix, and relies on steadier businesses such as motorcycles.
- Company comments and industry reporting link the strategy shift to U.S. policy changes under President Donald Trump that reduced EV incentives, rising price pressure from Chinese makers like BYD, and higher oil prices that some EV brands say are pushing buyers to focus on fuel savings.