Honda in the red after a historic loss!

Honda reports a loss of several billion euros after heavy investments in electric cars.

Honda has published severely degraded financial results for its 2025-2026 fiscal year. The Japanese automaker shows an operational loss of around 2.5 billion euros, mainly linked to its strategy in electric vehicles.

The group explains that it recorded nearly 9.5 billion euros in exceptional charges in the electric sector. Honda has notably canceled several projects and revised certain investments that have become too costly in the context of a slowdown in the global electric vehicle market.

Failure of pure electrification

In light of this situation, the manufacturer is changing course. Honda now wants to focus more on hybrid models, deemed more profitable and better suited to current demand. The sales target for 100% electric vehicles by 2030 has been revised downward.

At the same time, the group plans to launch 15 new hybrid models before the end of the decade to strengthen its presence in the major global markets.

Despite these significant losses, some activities remain very strong. The motorcycle division continues to record record results. Honda has sold a historic number of two-wheelers, particularly in India and Brazil, allowing the group to maintain an overall stable financial situation. However, the manufacturer still faces several challenges: declining car sales in China, strong competition from Chinese brands in the electric segment, and rising costs related to US tariffs.

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• 24/05/2026 11:38

Ford bets on boldness to bounce back

Investors have nevertheless welcomed this new strategic direction. Markets believe that Honda is now aiming to prioritize profitability rather than a too-rapid electric transition. For the 2026-2027 fiscal year, Honda anticipates a return to profits with an operational result target of around 3 billion euros.

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