Honda posts its first-ever operating loss, presses pause on EV ambitions
Tokyo-listed Honda Motor reported its first operating loss since going public in 1962. The carmaker is recalibrating its electric strategy toward hybrids after shelving its 11-billion-dollar Canada EV plant.
Honda posted an operating loss of 285 billion yen (1.9 billion dollars) for the fiscal year ending in March, compared with a 1.2 trillion-yen profit the previous year. The carmaker blamed soaring logistics costs from the Iran war and a drop in China sales.
CEO Toshihiro Mibe said the company is rebuilding its EV roadmap and that hybrids will absorb more than half of investment over the next three years. The 11-billion-dollar battery and assembly plant in Ontario, Canada is on hold, while new hybrid lines will be added in the United States and Japan.
Honda shares closed 5.2% lower on the Tokyo Stock Exchange, dragging the Topix Automotive index down 1.7%. JP Morgan said the hybrid pivot should defend margins, but called recovering lost ground in China a tougher task.
More from Asia
SK Hynix Flooded With Unprecedented Big Tech Orders for Memory Chips
South Korea's SK Hynix says it has received "unprecedented" orders from big tech firms eager to lock in supplies of high-bandwidth memory chips for AI servers. The chipmaker says its 2026 production capacity is largely sold out. Its shares are trading near record highs in Seoul.
Toyota Expects $5.5 Billion Hit From Iran War Fallout
Toyota said it expects an additional $5.5 billion in costs in fiscal 2026 because of fallout from the Iran war on global logistics and energy prices. The carmaker cut its profit guidance and signalled possible price changes for some US models. Its shares opened lower in Tokyo.
Explosion at China fireworks factory kills 26 people
An explosion at a fireworks factory in Hunan province, China, killed 26 people and injured 61, according to state media reports.