For the first time in its history, Honda achieves an annual loss

Honda Motor Company recorded its first annual loss in its history as a company listed on the stock exchange since 1957, after incurring billions of dollars in losses as a result of retreating from its ambitious plans in the field of electric cars.
A report published by the American newspaper “The New York Times” quoted a statement by the Japanese company announcing a net loss amounting to $2.7 billion during the fiscal year ending on March 31, after its profits were affected by more than $9 billion from restructuring costs and reducing the value of assets associated with reducing the electric car strategy.
This sharp decline reflects the amount of pressure faced by Honda and many other car companies that have pumped billions of dollars into the electric car sector, in light of the slowdown in global demand for these cars.
Only 5 years ago, Honda was racing against time to catch up with companies such as Tesla and the Chinese BYD in developing electric cars.
The company pledged to convert all of its models to electric or hydrogen-powered cars by 2040, in a move that differed from the trend of other Japanese companies such as Toyota, which continued to focus on hybrid and gasoline cars.
But it turned out that consumers were not fully prepared for the rapid shift towards electric cars, as the enthusiasm of traditional buyers declined due to concerns about charging station infrastructure and high prices.
Reducing US government support for electric cars during the administration of President Donald Trump also led to increased pressure on the sector.
In 2025, electric vehicle sales in the United States — Honda’s largest market — fell by about 4% compared to the previous year, ending five years of continuous record growth.
Last March, Honda CEO Toshihiro Mebe announced the cancellation of 3 major electric models intended for the North American market, and joint projects with General Motors and Sony to develop low-cost, advanced software electric cars were frozen.