Honda makes its first annual loss in 70 years
Summary
Honda reported its first annual loss in 70 years because its investments in electric vehicles (EVs) did not meet expectations. The company is cutting some EV goals, buying cheaper parts from China, and focusing more on motorcycles, hybrids, and financial services.Key Facts
- Honda lost ¥423 billion ($2.68 billion) in the year ending March 2026.
- EV demand was weaker than Honda expected.
- Honda scrapped plans for EVs to make up 20% of new car sales by 2030 and canceled the goal to have all EVs by 2040.
- The loss was affected by changes in U.S. policy, including the removal of a $7,500 EV tax credit and tariffs on imported cars and parts.
- Honda will source parts from China to reduce costs.
- Honda will focus on motorcycles, hybrid vehicles, and financial services for growth.
- Key markets for Honda’s future are North America, Japan, and India.
- Honda expects further EV-related losses of ¥512 billion in the next year.
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