Honda posts first annual loss in 67 years amid EV struggles

Honda has reported its first annual loss in nearly 70 years. The company recorded a net loss of $2.2 billion, driven by heavy restructuring and write-downs in its electric vehicle division. Share prices climbed nearly 4% after the announcement but remain sharply lower for the year. The Japanese automaker posted an operating loss of 414 billion yen ($2.63 billion) for the fiscal year. This marks Honda’s first annual loss since 1957. The steep decline stems from costs tied to its struggling electric vehicle (EV) business.

Honda has now scrapped its earlier goals of achieving 20% EV sales by 2030 and a fully electric lineup by 2040. The company has also halted construction of an $11 billion plant in Canada, originally planned for EV and battery production. No timeline for resuming the project has been given.

Despite the setbacks, Honda expects to return to profitability this fiscal year. The turnaround plan relies on cost-cutting and growth in its motorcycle division, which has remained a strong performer. The financial results reflect Honda’s challenges in transitioning to electric vehicles. With the Canada plant paused and EV targets abandoned, the company is shifting focus to profitability. Investors reacted positively to the cost-cutting measures, though shares are still down over 15% since January.