Honda posts first annual loss in nearly 70 years on EV writedowns, scraps EV sales goals
The automaker expects a 500 billion yen profit next fiscal year as motorcycle sales offset steep EV losses and restructuring costs.
- 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.
40 Articles
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Honda announced on Thursday May 14th its first operational loss since 1957 after a major restructuring of its electric vehicle strategy in the United States. Japan's second-largest car manufacturer after Toyota attributed its last year's operational loss of 414.3 billion yen ($2.6 billion) to huge accounting charges on its electric vehicle operations.It also reported a net loss of 423,900 million yen, which Bloomberg News said was the first sinc…
The Japanese Honda has announced that in fiscal year 2025 (completed on March 31, 2026), its losses have been of 2.6 billion euros, compared to 5,100 of profits obtained in the year 2024. Results that from the company have attributed directly to the increase of the tariff costs imposed by Donald Trump and to a change of strategy focused on electrification. The revenues of the manufacturer reached 133 billion euros, 0.5% more than in the previous…
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