Honda Adjusts Electric Vehicle Strategy, Expected Loss of Up to 123.1 Billion

SighingCashier · 2026-03-12T13:18:52+00:00

Honda Motor Company stated that to respond to the slowdown in the North American electric vehicle market, it has decided to cancel the launch and development of certain vehicle models and revise its electrification strategy. The company expects expenses and losses related to the reassessment of its electric vehicle strategy to reach a maximum of 2.5 trillion yen ( approximately 123.1 billion Hong Kong dollars ).As a result, the company expects to record an annual net loss for the fiscal year 2025, with projected net losses between 420 billion to 690 billion yen, compared to the previously forecasted net profit of 300 billion yen. This will mark the first loss since its listing.Honda maintains its full-year revenue guidance of 21.1 trillion yen unchanged.

SighingCashier

2026-03-12 13:18:52

Honda Motor Co. announced that in response to the slowdown in the North American electric vehicle market, it will cancel the release and development of certain models and revise its electrification strategy. The company estimates that the costs and losses related to reevaluating its electric vehicle strategy could reach up to 2.5 trillion yen (approximately HKD 123.1 billion).

As a result, the company expects to record an annual net loss for fiscal year 2025, with projected net losses ranging from 420 billion to 690 billion yen, compared to a previous forecast of a net profit of 300 billion yen. This will be the company’s first loss since going public.

Honda maintains its full-year revenue forecast of 21.1 trillion yen.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.