Honda Posts Fourth Straight Quarterly Loss, Overhauls EV Strategy

Honda has announced it will "fundamentally" reassess its electric vehicle (EV) strategy following operating losses for four consecutive quarters. For the nine months ended December 31, 2025, the company recorded impairment charges and expenses related to its EV business totaling ¥267.1 billion (approximately RMB 11.95 billion), with full-year losses potentially reaching ¥700 billion (about RMB 31.32 billion). As a result, Honda has suspended multiple EV projects and terminated its deep collaboration with General Motors on EVs, including reducing procurement volumes of the Acura ZDX and Honda Prologue built on GM’s Ultium platform. Although Honda still plans to launch the electric Acura RSX and Honda 0 Series SUV this year, its strategic focus is shifting toward hybrid vehicles, aiming to increase annual hybrid sales to 2.2 million units. The company is abandoning its previous “EV-centric” approach in favor of a more balanced electrification strategy.