Honda books first ever annual loss after $11.5 billion EV write-down
Japanese auto giant Honda has reported its first ever annual loss after a write-down tied to its retreat from an aggressive electric-vehicle strategy. The company says it will narrow its EV line-up to a tighter set of segments.
Honda has booked an $11.5 billion electric-vehicle-related write-down in its 2025 fiscal year, posting the first annual net loss in its history. The carmaker is scaling back the broad-based EV plan it announced earlier, redirecting investment into a narrower set of segments along with hybrid and plug-in models.
Executives said EV demand in the United States has come in below expectations, while competition from domestic players in China has intensified. Honda said it will reassess the future of its electric joint venture with Sony. Hydrogen and software-defined vehicle work will continue under the new plan.
The share price fell around three percent intraday in Tokyo after the announcement. Analysts expect Toyota, Nissan and Mazda to undertake similar strategic reviews amid a sector-wide slowdown. Honda will unveil new hybrid models in the coming quarter.
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