Nissan and Honda Report Massive Losses in FY2025

[Company Financial Reports] Both Nissan and Honda incurred massive losses in fiscal year 2025, with a combined total exceeding 1.2 trillion yen.

Key Development: Honda Posts First Annual Loss Since IPO Nearly 70 Years Ago

Honda reported a net loss of 423.9 billion yen (approximately RMB 18.1 billion) for FY2025—the company's first annual loss since its initial public offering in 1957. Revenue rose slightly by 0.5% to 21.8 trillion yen, but a strategic pivot in its electrification plan triggered impairment charges amounting to 1,577.8 billion yen, primarily due to the cancellation of three battery-electric vehicle models in North America and asset write-downs.

Strategic Context: Japanese Automakers’ Transition Pains Come to a Head

Nissan, posting massive losses for the second consecutive year, together with Honda, highlights the strategic delays and execution challenges faced by Japanese automakers amid the global shift toward electrification. Both companies have been forced to scale back their aggressive 'ICE phase-out' strategies, adopting instead a more pragmatic approach that combines hybrid and internal combustion engine vehicles—underscoring the widespread difficulties encountered as the industry navigates the deeper stages of electric vehicle transition.