Honda reported its first annual financial loss in more than seven decades, as global automakers continue to retreat from aggressive electric vehicle expansion plans.
According to CNN, Honda posted a net loss of 403.3 billion yen, or roughly $2.6 billion, for the fiscal year ending in March. The company said it absorbed a nearly $10 billion writedown tied largely to EV investments that lost value after demand weakened.
Honda reported its first annual loss as a listed company—equivalent to $2.7 billion. Here is what went wrong and how the company hopes to turn its fortunes around. https://t.co/BrDl4ErjTe
— The Wall Street Journal (@WSJ) May 14, 2026
The report said automakers had earlier poured billions into electric vehicle development expecting stricter U.S. emissions regulations. However, President Donald Trump rolled back tougher Biden-era emissions standards and ended the $7,500 federal EV tax credit.
Honda is not alone. According to the report, Ford Motor Company, General Motors and Stellantis also reported major EV-related charges and losses.
Despite the pullback, automakers continue investing in EVs due to regulations in Europe and growing competition from Chinese manufacturers.
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