Honda books first annual loss after $11.5 billion electric vehicle charge
Japanese carmaker Honda has reported its first ever annual loss after taking an $11.5 billion impairment charge tied to its electric vehicle programme. The company is reining in its aggressive EV plans and shifting focus to hybrids and carbon-neutral fuels. Honda still expects to return to profit in fiscal 2026.
Japanese carmaker Honda reported its first ever annual loss in its full-year earnings, taking an impairment charge of $11.5 billion related to its electric vehicle programme. The net loss came in at $8.7 billion. Executives said weaker-than-expected global demand was the main reason for the writedown.
Honda is also overhauling its aggressive EV strategy. The company has scrapped its target of making half its global fleet fully electric by 2030 and said it would invest more in hybrid models and in hydrogen and synthetic fuels. The scope of its EV partnership with General Motors will also be narrowed under the new plan. Honda hinted that some models could be cancelled outright.
Honda forecasts a return to profit in fiscal 2026 and said it would cut capital spending to preserve free cash flow. Shares traded in a choppy range on the Tokyo Stock Exchange during the day. Toyota and Nissan have also signalled they would slow their EV plans; Honda's statement confirms that Japan's auto sector is moderating the pace of transition.
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