Honda Reports First Net Loss Since 1957 on EV Costs

Honda Motor Co. reported its first annual net loss since becoming a publicly traded company in 1957, posting a shortfall of 423.9 billion yen, or about $2.7 billion, for the fiscal year ended March 31, 2026. The Japanese automaker attributed the red ink primarily to more than 1.5 trillion yen in restructuring costs tied to its electric vehicle operations.

The loss stemmed from Honda's decision to scale back ambitious EV plans amid slower-than-expected demand. The company scrapped long-term targets, including a goal for EVs to comprise 20 percent of new car sales by 2030 and a full transition to electric or fuel-cell vehicles by 2040. Among the casualties were three models on the 0 Series platform: the Honda 0 Series SUV, Saloon, and Acura RSX, all canceled before production began. Honda also indefinitely suspended an 11 billion Canadian project for EV and battery production, its largest planned investment there, and ended a joint venture with Sony Corp. to develop electric models.

Chief Executive Toshihiro Mibe announced the pivot during a business briefing in Tokyo, emphasizing a renewed focus on hybrid vehicles. "We will continue our research to develop future technologies...