Trending Now - Honda Unveils New Hybrids Amid $9 Billion EV Business Losses

WHO:

Yahoo Finance - Honda Motor Company is the automaker involved.

WHAT:

Entrepreneur - Honda scrapped its 2040 all-electric target and is now focusing on gas-hybrid technology, which it had previously abandoned.

Yahoo Finance - Honda reported a 2.2% drop in global revenues to JPY 21,796.6 billion (US$ 138 billion) in the last fiscal year (FY25).

Yahoo Finance - The company incurred an operating loss of JPY 414.3 billion, compared to an operating profit of JPY 1,213.4 billion in the previous fiscal year.

Yahoo Finance - Honda reported a net loss of JPY 423.9 billion following a net profit of JPY 835.8 billion previously.

Yahoo Finance - Global vehicle sales fell by 8.9% to 3.387 million units in the last fiscal year.

Yahoo Finance - Sales in North America fell by 3% to 1.605 million units.

Yahoo Finance - Sales in Asia (excluding Japan) plunged by over 21% to 929,000 units.

Yahoo Finance - Sales in Japan were down by 4% to 605,000 units.

Yahoo Finance - Honda expects to make an operating profit of JPY 500 billion in the current fiscal year (FY26).

WHERE:

Yahoo Finance - The losses and sales figures pertain to Honda's operations in the United States, Asia, and Japan.

WHEN:

Yahoo Finance - The last fiscal year (FY25) ended in March 2026.

Yahoo Finance - The current fiscal year (FY26) ends in March 2027.

WHY:

Yahoo Finance - Honda attributed its first operating loss in almost 70 years to huge accounting charges and restructuring costs associated with the overhaul of its battery electric vehicle (BEV) strategy in the US.

Yahoo Finance - The company cancelled several new models scheduled to go into production in the US due to weakening demand following policy changes by the Trump administration.

HOW:

Yahoo Finance - The overhaul of Honda's BEV strategy involved significant accounting charges and restructuring costs.

(UPDATED May 15, 2026 21:21 UTC)

Honda has made a significant shift in its strategy by scrapping its 2040 all-electric target and refocusing on gas-hybrid technology, which the company had previously abandoned. This move marks a notable change in the automotive landscape as companies adapt to evolving market demands. Honda's decision reflects a growing trend among automakers to reconsider their approaches to sustainability and energy efficiency.

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(UPDATED May 15, 2026 19:27 UTC)

Honda Motor Company has reported a significant financial downturn, with a 2.2% drop in global revenues to approximately 138 billion dollars in the last fiscal year, alongside an operating loss of over 4 billion dollars, marking its first operating loss in nearly 70 years. The company also faced a net loss of about 424 billion yen, with global vehicle sales declining by nearly 9% to just over 3.3 million units, largely due to a drop in demand influenced by recent policy changes. Looking ahead, Honda expects to rebound with an operating profit of 500 billion yen in the current fiscal year, which ends in March 2027.