Electric Vehicles Lead Major Car Maker to Report First Loss in Decades Honda experienced its first annual loss in nearly 70 years, amounting to $2.7 billion in the past fiscal year, due to significant investments in electric vehicles and the impact of U.S. trade policies. The company is facing $9 billion in restructuring costs related to decreased electric vehicle demand and scrapped a previous target for EVs to account for 20 percent of profits by 2030, with total EV losses projected to reach $16 billion. Despite these challenges, Honda’s motorcycle business saw growth, and the company still anticipates a profit for the fiscal year ending March 2027.

• Honda reported its first annual loss in nearly 70 years.
• The loss is attributed to an emphasis on electric vehicles and U.S. trade policies, including tariffs.
• The company incurred $2.7 billion in losses in the past fiscal year and faces $9 billion in restructuring costs for its EV business.
• Honda scrapped its target for electric vehicles to represent 20 percent of profits by 2030.
• Total losses from electric vehicles are expected to reach $16 billion.
• Rollbacks in environmental regulations in the U.S. and the withholding of funds for charging stations contributed to decreased EV demand.
• President Trump’s tariffs on automotive parts diminished profit margins.
• Growth in Honda’s motorcycle business helped mitigate some losses.
• Honda is still projected to achieve a $1.7 billion profit for the fiscal year ending March 2027.