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Honda Reports First Loss in 70 Years Amidst Policy Shifts

Honda Reports First Loss in 70 Years Amidst Policy Shifts

Thairath•International•15d ago

Reader Briefing

Honda experienced its first fiscal year loss in 70 years, attributed to US policy changes and tariffs, prompting a strategic shift away from aggressive EV production targets.

  • •Honda, a major Japanese automaker, reported its first net loss in 70 years for the fiscal year ending March 2026.
  • •The loss of 4.23 hundred billion yen is attributed to US policy shifts and trade tariffs, including the cancellation of EV tax incentives.
  • •Honda is revising its EV strategy by reducing production targets, sourcing cheaper parts from China, and refocusing on motorcycles, financial services, and hybrids.

Overview

  • •In the fiscal year ending March 2026, Honda reported a net loss for the first time in 70 years.
  • •The loss was primarily due to US policy changes, including the cancellation of EV tax incentives and the implementation of tariffs.
  • •Honda reported a loss of 4.23 hundred billion yen, equivalent to approximately 8.65 ten billion baht.
  • •Honda is discontinuing some electric vehicle production targets and will source parts from China.
  • •Previous US tax incentives, which allowed consumers up to $7,500 back on EV purchases, were abolished by Donald Trump in September 2025.
  • •Tariffs on imported cars and auto parts announced by Trump in 2025 also impacted automakers' profits.
  • •Honda's CEO, Toshihiro Mibe, announced the company will abandon its goal for EVs to make up one-fifth of new car sales by 2030 and achieve all-EV status by 2040.
  • •Honda anticipates an additional loss of 5.12 hundred billion yen related to electric vehicles in the fiscal year ending March 2027.

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Key Quotes

Danny Huison
"Like many legacy automakers, Honda bet on users rapidly switching to electric vehicles, and they lost when the world's direction changed."
เช่นเดียวกับผู้ผลิตรถยนต์รายเก่าแก่หลายราย ฮอนด้าวางเดิมพันว่าผู้ใช้รถจะเปลี่ยนไปใช้รถยนต์ไฟฟ้าอย่างรวดเร็ว และพวกเขาก็เป็นฝ่ายแพ้เมื่อทิศทางของโลกเปลี่ยนไป
Danny Huison
"A company this large, like Honda, has to constantly adapt to immediate situations, which is very difficult."
บริษัทที่มีขนาดใหญ่ระดับนี้อย่าง Honda กลับต้องมาคอยปรับตัวตามสถานการณ์เฉพาะหน้า ซึ่งเป็นเรื่องที่ยากลำบากมาก

Key Entities

Organization

Honda(ฮอนด้า)ℹ️
A major Japanese automaker reporting its first loss in 70 years.
BBC(บีบีซี)ℹ️
News agency reporting on Honda's financial results.
AJ Bell
Financial analysis firm providing commentary on Honda's situation.

Place

United States(สหรัฐฯ)ℹ️
Country whose policy changes and tariffs are impacting Honda's financial performance.
China(จีน)ℹ️
Country from which Honda plans to source cheaper auto parts.
Japan(ญี่ปุ่น)ℹ️
Country of origin for the Honda automotive company.
India(อินเดีย)ℹ️
A key market targeted by Honda for future growth.
North America(อเมริกาเหนือ)ℹ️
A key market targeted by Honda for future growth.

Person

Donald Trump(โดนัลด์ ทรัมป์)ℹ️
Former US President who abolished EV tax incentives and announced import tariffs impacting Honda.
Toshihiro Mibe(นายโทชิฮิโระ มิเบะ)
CEO of Honda who announced revised EV production goals.
Danny Huison(น.ส. แดนนี ฮิวสัน)
Head of Financial Analysis at AJ Bell, providing expert commentary.