Honda Cancels Three EV Models, Leading to Massive Losses

[Strategic Adjustment] Honda has canceled development of three all-electric vehicle models in the U.S., anticipating an impairment loss of JPY 2.5 trillion.

Strategic Rationale: Prioritizing Hybrids to Avoid Long-Term Losses

The Honda 0 SUV, Honda 0 Sedan, and Acura RSX—all-electric models—were terminated because their mass production was projected to result in long-term losses. Resources will now be redirected toward hybrid vehicle lines. This decision stems from a reassessment of global market dynamics, including slowing EV demand in the U.S., reduced policy incentives, and intensifying competition from China.

Key Figures: First Annual Net Loss Since Listing

For the fiscal year ending March 31, 2026, Honda forecasts a net loss of JPY 270 billion to JPY 570 billion (approximately RMB 11.68 billion to RMB 24.6 billion), with consolidated net losses potentially reaching JPY 690 billion (around RMB 29.7 billion). Compared to a net profit of JPY 83.58 billion in fiscal year 2024, this marks the company’s first-ever annual net loss.