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Honda Posts First Loss Since 1957 as EV Write-Downs Force Pivot to Hybrids

Honda shifts spending to hybrids, signaling a reset built on lower costs with a return to profit forecast.

Overview

  • Honda, which reported results Thursday, posted an operating loss of about ¥414 billion and a net loss of ¥423.9 billion for the year to March.
  • The company said EV-related costs total about ¥2.5 trillion after canceling planned U.S. electric models, a move it linked to U.S. policy shifts such as higher tariffs and reduced buyer incentives.
  • The rebuild plan suspends the Canadian EV value-chain project and shifts some Ohio capacity, including part of the LG joint venture, to hybrid batteries and petrol–hybrid output.
  • Through March 2029, Honda will spend ¥4.4 trillion on petrol and hybrids, ¥1 trillion on software, and ¥800 billion on EVs, and it targets 15 new hybrid models by 2030.
  • Honda forecasts a return to profit in the year to March 2027, and its shares rose more than 7% Friday after the outlook.