Honda Posts Fourth Straight Quarterly Loss, Shifts Focus to Hybrids, Pauses EV Push

Honda has announced a major strategic shift in its electrification plans due to operating losses for four consecutive quarters, halting development of several battery-electric vehicle (BEV) models and refocusing its efforts on hybrid vehicles. For the first nine months of fiscal year 2026 (ending December 31, 2025), Honda reported an accumulated loss of JPY 166.4 billion (approximately RMB 7.515 billion). Impairment charges and expenses related to its EV business alone amounted to JPY 267.1 billion, with full-year losses projected to reach JPY 700 billion (approximately RMB 31.6 billion). As a result, Honda has terminated its deep collaboration with General Motors in the EV sector and reduced its planned purchases of the GM Ultium-based Prologue and Acura ZDX models. Despite this strategic pivot, Honda has not entirely abandoned its BEV roadmap—it still intends to launch the electric Acura RSX and the Honda 0 Series SUV in 2026, with the latter scheduled to debut in North America in the first half of that year.