Honda Projects First Annual Loss Since 1957 Amid $15.7 Billion Electric Vehicle Retreat

2026-03-14 companies

Tokyo, Saturday, 14 March 2026.
Honda faces its first annual loss since 1957, taking a staggering $15.7 billion hit as it cancels three electric vehicle models to pivot toward hybrid production.

A Historic Financial Reversal

In a dramatic reversal of its fiscal outlook, Honda Motor Co. (NYSE: HMC) announced on Thursday, March 12, 2026, that it anticipates a staggering write-down of up to 2.5 trillion yen, or approximately $15.7 billion, related to its electric vehicle (EV) operations [2][4][6]. The automaker now projects an operating loss of up to 570 billion yen ($3.6 billion) for the fiscal year ending in March 2026, a sharp contrast to its previous forecast of a 550 billion yen profit [2][4]. This represents a negative swing of 1120 billion yen in the company’s bottom-line expectations. Consequently, Honda is bracing for its first annual net loss since it debuted on the stock market in 1957 [4].

Scrapping the North American EV Roadmap

At the core of this financial recalibration is the cancellation of three highly anticipated EV models destined for the North American market [2][6]. Honda has officially pulled the plug on the Honda 0 SUV, the Honda 0 Saloon, and the Acura RSX, which were slated to begin production on the automaker’s dedicated “Zero” platform later in 2026 [6][7]. While analysts had anticipated some level of EV-related losses, the outright cancellation of the U.S. production program—rather than a mere scaling down—caught the market by surprise [4]. Honda anticipates further expenses in the coming fiscal year, projecting that the cumulative financial impact could reach the full 2.5 trillion yen [alert! ‘The final write-down figure may fluctuate depending on ongoing structural assessments and future market conditions’] [6].

The Broader Industry Contagion and Strategic Pivot

Honda’s $15.7 billion charge is a symptom of a much wider contagion infecting legacy automakers. The industry-wide tally for EV-related write-downs has now swelled to approximately $67 billion [4]. General Motors has warned of a $7.6 billion hit, while Stellantis and Ford have flagged massive write-downs of $25 billion and $19 billion, respectively [4]. Beyond North America, Honda is also writing down the value of its operations in China, where traditional automakers are rapidly losing ground to emerging, software-focused domestic competitors like BYD [4][6].

Sources

Electric vehicles Honda