Honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying competition
Japanese auto giant Honda has posted its first operating loss since 1957, citing weakening electric vehicle (EV) demand, US trade measures, and mounting competition from China.
On Thursday, the automaker reported a net loss of 424 billion yen ($2.7 billion) for the fiscal year that ended on March 31, largely due to a massive write-down linked to its EV business.
Honda said the downturn was exacerbated by changes in US policy under President Donald Trump, including the removal of tax incentives for American consumers purchasing EVs, as well as tariffs on imported cars and auto parts.
“EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said.
The group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. Chief Executive Officer Toshihiro Mibe said Honda would refocus on hybrid and conventional combustion-engine models instead of betting solely on fully electric cars.
As part of the shift, Honda has shelved a planned EV production project in Ontario, a move that Canadian Prime Minister Mark Carney described as “disappointing.”
Other Japanese automakers have come under growing pressure as well. Toyota last week forecast a 22% drop in net income for the current fiscal year, while Nissan posted losses of roughly $3.4 billion and announced factory closures alongside thousands of job cuts.
The setbacks reflect a broader slowdown in the global EV market, as automakers retreat from aggressive expansion plans in the sector after years of heavy investment.
Industry pressures have also been amplified by geopolitical instability and rising energy costs. The fallout from reduced Russian energy supplies following the escalation of the Ukraine conflict, as well as tensions in the Middle East and disruptions to global shipping and energy supplies, have added further strain to manufacturing and supply chains worldwide.
Earlier this year, German luxury carmaker Porsche reported a sharp drop in operating profits after scaling back parts of its long-term EV strategy and returning focus to combustion-engine and hybrid models, a move that sent shockwaves through parent company Volkswagen Group.
15 thoughts on “Japanese auto giant takes historic hit amid EV pullback”
Basically honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying. What matters is whether anything changes because of it.
Honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying. Meanwhile japanese auto giant Honda has posted its first operating loss since 1957, citing weakening electric vehicle (EV) demand, US trade measures, and mounting competition from China.
The bigger issue here is the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. That changes the calculation.
Think about it: japanese auto giant Honda has posted its first operating loss since 1957, citing weakening electric vehicle (EV) demand, US trade measures, and mounting competition from China. That speaks volumes.
In other words “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said. Curious to see how this develops.
So the bottom line is the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. Wonder how this will land.
If on Thursday, the automaker reported a net loss of 424 billion yen ($2.7 billion) for the fiscal year that ended on March 31, largely due to a massive write-down linked to its EV business, then the bigger picture starts to look very different.
Basically the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. What matters is whether anything changes because of it.
Considering the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs, it raises some real questions about what happens next.
When you look at “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said, the implications are hard to ignore.
Basically “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said. What matters is whether anything changes because of it.
Considering honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying, it raises some real questions about what happens next.
Basically honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying. What matters is whether anything changes because of it.
Honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying. Meanwhile japanese auto giant Honda has posted its first operating loss since 1957, citing weakening electric vehicle (EV) demand, US trade measures, and mounting competition from China.
The bigger issue here is the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. That changes the calculation.
Think about it: japanese auto giant Honda has posted its first operating loss since 1957, citing weakening electric vehicle (EV) demand, US trade measures, and mounting competition from China. That speaks volumes.
In other words “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said. Curious to see how this develops.
Officer Toshihiro has been vocal about this, good to see them staying on it.
So the bottom line is the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. Wonder how this will land.
424 billion is hard to ignore, no matter which side you are on.
Officer Toshihiro is in a tough spot here, curious how they navigate it.
If on Thursday, the automaker reported a net loss of 424 billion yen ($2.7 billion) for the fiscal year that ended on March 31, largely due to a massive write-down linked to its EV business, then the bigger picture starts to look very different.
Basically the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs. What matters is whether anything changes because of it.
Considering the group also cited intense competition from Chinese producers and slower-than-expected global uptake for EVs, it raises some real questions about what happens next.
When you look at “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said, the implications are hard to ignore.
Basically “EV demand has declined considerably, due to the rollback of environmental regulations in the US and other factors,” the company said. What matters is whether anything changes because of it.
Considering honda has reported its first operating loss since 1957, citing weaker demand, US tariffs, and intensifying, it raises some real questions about what happens next.