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Honda Posts First Loss Since 1957 in EV Retreat

Is Honda's EV retreat a catastrophic collapse or a disciplined strategic reset toward record profits?

Published MAY 14

Honda Posts First Loss Since 1957 in EV Retreat

Story

Above: The new hybrid sedan prototype displayed at a news conference in Tokyo, Japan, on May 14, 2026. Image credit: Kiyoshi Ota/Bloomberg/Getty Images

The Facts

Honda Motor reported a net loss of approximately ¥423.9 billion ($2.7 billion) for the fiscal year ending March 31— its first annual loss since listing on the Tokyo Stock Exchange in 1957, driven by more than $9 billion in restructuring charges tied to a retreat from its EV strategy.
Quartz
The Wall Street Journal
Honda booked over 1.45 trillion yen in EV-related charges, including 521.4 billion in impairment losses on assets tied to electric models in North America and China, and 331.4 billion from canceled EV development programs. It also canceled three planned EV launches in North America.
Morning Star
Quartz
Honda CEO Toshihiro Mibe abandoned the company's 2040 target to sell only electric and hydrogen-powered vehicles, citing shifting U.S. policy and declining EV demand. Honda plans to launch 15 next-generation hybrid models globally by March 2030, primarily targeting the North American market.
Honda Canada Corporate Newsroom
The New York Times
Honda's motorcycle division posted record sales of 22.1 million units and record operating profit for the fiscal year, driven by strong demand in India and Brazil. The segment generated 731.9 billion yen in profit, partially offsetting a 1.41 trillion yen loss from the automobile division.
Financial Post
Quartz
Honda projected a return to profitability in the fiscal year ending March 2027, forecasting revenue of 23.150 trillion yen and net profit of 260 billion. The company also plans to return at least 800 billion yen to shareholders over the next three years.
Morning Star
The Wall Street Journal
Quartz
Toyota projected operating income of 3 trillion yen for the fiscal year ending March 2027, below expectations of 4.6 trillion and last year's 3.8 trillion. It estimated the ongoing Iran conflict could reduce earnings by about 670 billion, while Honda's stock fell 17% year-to-date amid similar pressures.
Automotive News
ZeroHedge

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Honda's historic 400 billion yen collapse was driven by a reckless EV bet that torched billions and left retooled Ohio factories stranded. The industry's collective EV retreat now totals roughly $67 billion, proving this wasn't bad luck but a fundamental miscalculation. Honda got outcompeted in China, canceled its entire North American EV lineup and is now scrambling to pivot back to hybrids.

Autoblog

ZeroHedge

Narrative B

Honda has a concrete, fully detailed plan to not just recover but hit an all-time high operating profit of more than 1.4 trillion yen by fiscal year 2029. Fifteen next-generation hybrid models are launching globally, development costs are being cut in half and motorcycle and financial services businesses are already generating strong cash flow. This is a disciplined strategic reset, not a collapse — and the numbers back it up.