Honda posted a loss for the first time since 1957 – AP

Japanese auto giant Honda reported a net loss for the first time since 1957 for the fiscal year ending in March 2026. The company’s losses totaled 423.9 billion yen (about $2.7 billion). The main reason for the financial setback was a revision of its electric vehicle (EV) development strategy due to low demand in key markets, particularly in the U.S. 

This was reported by the Associated Press.

Due to cuts in government subsidies for electric cars and a shift in consumer sentiment, Honda was forced to suspend a large-scale battery production project in Canada and abandon a number of ambitious goals regarding the full electrification of its fleet. The company is now focusing on hybrid technologies, which demonstrate greater stability. Despite record losses, the automaker’s management expects a return to profitability as early as next year thanks to strong motorcycle sales and cost optimization.

Japanese automaker Honda Motor has revised its long-term strategy and abandoned its plan to fully transition to selling electric vehicles and fuel-cell vehicles by 2040. The company changed course amid financial difficulties and a slowdown in the electric vehicle market.

Earlier, He Xiaopeng, founder and CEO of Chinese electric vehicle manufacturer Xpeng, stated the need to accelerate the development of autonomous driving in China and skip intermediate stages, moving directly to Level 4. He emphasized that to achieve this, Beijing needs to adjust its regulatory framework and policies more quickly.