Honda posts first annual loss on $9 billion EV writedown, scraps EV sales goals
Yahoo News
Last updated: May 14, 2026
Honda Motor reported its first annual loss in almost 70 years as a listed company. This significant financial downturn was primarily driven by extensive restructuring costs within its electric vehicle business, amounting to over $9 billion.
- The Japanese automaker recorded a net loss of 807.7 billion yen ($7.49 billion) for the fiscal year ending March 31. This marks a substantial shift from the previous year's profit of 1.05 trillion yen. The primary factor contributing to this loss was a one-time charge of 1 trillion yen related to the reorganization of its EV business. This restructuring involves a strategic pivot, including scaling back investments in its traditional gasoline engine development and accelerating its commitment to electrification. The company's decision to consolidate its EV operations and partnerships reflects a broader industry trend towards a more electric future. Despite the annual loss, Honda's automotive division saw a slight increase in sales revenue, indicating resilience in its core operations. However, the significant restructuring expenses overshadowed these gains, leading to the historic net loss.
