The Digester

Honda will take an estimated ¥2.5 trillion hit and expects a large fiscal-year loss after cancelling some electric models and reorienting its EV strategy amid US policy changes and tougher Asian competition.

Honda expects about ¥2.5 trillion, roughly $15.7 billion, in expenses and losses over several years from the strategy change.
The company now forecasts a net loss of ¥420 billion to ¥690 billion for the current fiscal year, reversing an earlier profit projection of about ¥300 billion.
Honda blamed US policy shifts including removal of EV purchase tax incentives and new import tariff pressures for weakening EV profitability.
Honda cited growing competition in China and reduced competitiveness in Asia as a reason to cut or cancel some EV launches in North America.
The automaker said it may write down investments in China as part of the review of its EV plans.
Industry context: Porsche reported a similar charge in 2025 and EU EV incentives and targets are also under review, with pure EVs making up 17.4% of new car sales in the EU in 2025.

Honda warns of ¥2.5 trillion loss after shifting away from EV push

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