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Thu, 14 May 2026

Thu, 14 May 2026 Honda makes its first annual loss in 70 years

The firm will now pivot away from scrapping its target for all of its vehicles to be electric by 2040.

* Honda made its first annual loss in 70 years due to failed investments in the electric vehicle (EV) market.
* Demand for EVs was not as strong as forecast, leading to a total operating loss of ¥423bn ($2.68bn).
* Honda is scrapping some EV production targets and sourcing parts from China to keep costs down.
* Changes in US policy, including the removal of tax incentives and imposition of tariffs, added to Honda's losses.
* Honda's size and legacy nature make it difficult to adapt quickly to changes in EV demand.
* The company will focus on growing its motorcycle business, financial services, and hybrid vehicle manufacturing.
* Honda has suspended plans to build EVs and batteries in Canada and scrapped targets for EVs to make up a fifth of new car sales by 2030.
* The company expects ¥512bn in EV-related losses in the next financial year ending March 2027.