BUSINESS

Honda needs a big pivot, and maybe a partner, after big EV-related losses

Brand power and a solid reputation will help as it undertakes an overhaul, with a likely shift toward hybrids.

By The Japan Times

• April 03, 2026 at 7:00 AM

Honda needs a big pivot, and maybe a partner, after big EV-related losses Photo: The Japan Times

A Honda car outside the Honda headquarters in Tokyo
The company is expected to report an annual loss for the last fiscal year
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Honda Motor has been hit hard by dramatic changes in the electric-vehicle market, so much so that analysts are intensely running the numbers and asking hard questions.The company will be taking an impairment charge of up to ¥2.5 trillion ($15.7 billion) for costs related to EV development, and it expects to post a net loss of as much as ¥690 billion in the fiscal year that ended March 31, 2026.The loss will be the company’s first annual loss in about 70 years.

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