Honda Motor Co., Japan's second-largest automaker, reported an operating loss of 413.4 billion yen (€2.23 billion) for the fiscal year ended March 2025, its first since 1957. The loss was driven by massive write-downs in its electric vehicle (EV) operations.

The company had aggressively pivoted toward EVs but was forced to reverse course after the US regime under President Donald Trump scrapped tax incentives for EV buyers as part of the 'Big Beautiful Bill' of September 2025. Tariffs on imported cars and parts, though reduced from 25% to 15%, also hurt profitability.

CEO Toshihiro Mibe said Honda remains committed to carbon neutrality but will now also focus on hybrids and internal combustion engines. When asked about resigning—a common practice for Japanese executives after poor results—Mibe said he wants to first work on the revival plan.

The motorcycle business helped offset losses, with sales rising to 22.1 million units. Honda forecast a return to profit in fiscal 2027, sending its shares up as much as 8% on Thursday.

Honda also cited declining competitiveness in China and other Asian markets, the Middle East war's impact on energy prices, and broader economic strains. Rivals Toyota and Nissan also posted losses, while Suzuki bucked the trend with an 8% revenue increase thanks to its focus on India and Latin America.

Source: www.dw.com