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Honda Posts First Annual Loss Since 1957 as EV Retrenchment Takes Hold

Costly EV write-downs forced Honda to pivot toward hybrids.

Overview

  • Honda, which disclosed results Thursday, reported a ¥423.94 billion net loss for the year ended March 2026 and forecast a return to profit in the year through March 2027.
  • The company said the loss reflects EV write-downs and restructuring after U.S. EV tax credits were removed and Chinese makers drove prices lower.
  • Honda halted a planned EV and battery complex in Canada and stopped development of three North American EV models.
  • It dropped long-term sales goals that called for 20% EV share by 2030 and only EV or fuel-cell sales by 2040.
  • Management is shifting spending to 15 new hybrid models and more locally sourced, market-specific designs, while saying HRC’s F1 and other racing programs continue unchanged.