Honda Forecasts First-Ever Net Loss of Up to ¥690 Billion, Cancels Key EV Models
Honda announced on the 12th that it expects to report a net loss of up to 690 billion yen for the fiscal year ending March 2026. This would mark the first net loss since the company's listing, sending shockwaves through the automotive industry. The company had previously forecast a profit, but the main reason for this reversal is a massive impairment loss incurred due to a significant revision of its electric vehicle (EV) business strategy. According to the announcement, Honda re-evaluated its electrification strategy in response to a sharp slowdown in demand for electric vehicles (EVs) in the North American market. As a result, it decided to cancel the development and launch of three EV models that were part of its “Honda 0” series: the “Zero SUV,” the “Zero Saloon,” and the luxury brand “Acura RSX.” This decision is expected to result in impairment losses and disposal costs ranging from 820 billion yen to 1.12 trillion yen, which will be recorded as extraordinary losses. Furtherm...