Honda Posts First Ever Annual Loss After Pullback From EVs
New York Times
Last updated: May 14, 2026
Honda Motor has reported its first annual loss in 70 years, a significant downturn attributed to substantial costs incurred from abandoning ambitious electric vehicle (EV) targets. This financial setback underscores the challenges the company faces in its strategic reorientation.
- The Japanese automaker recorded a net loss of 195.4 billion yen ($1.28 billion) for the fiscal year ending March, a stark contrast to the profit achieved in the previous year. This loss stems from charges related to winding down its EV business and investments in its now-discontinued hydrogen car project. Honda incurred 272 billion yen in charges related to discontinuing its EV business and hydrogen fuel cell vehicles.
- Despite the annual loss, Honda’s operating profit for the fourth quarter saw a considerable increase, rising by 76% to 143.8 billion yen. This quarterly improvement was driven by a recovery in vehicle sales and cost-saving measures. The company’s revenue for the fiscal year increased by 17% to 16.9 trillion yen, boosted by a weaker yen and increased vehicle sales volumes. Honda anticipates a 12% increase in operating profit for the current fiscal year, projecting it to reach 1.18 trillion yen.
