Honda Posts Third Straight Quarterly Loss, Overhauls EV Strategy

Honda's latest financial report shows that its operating profit for the third fiscal quarter plummeted 61.4% year-over-year to just JPY 153.4 billion, significantly below expectations. Its automotive business has posted losses for three consecutive quarters since the first quarter of fiscal 2026, with a cumulative loss of JPY 166.4 billion in the first nine months—compared to a profit of JPY 402.6 billion during the same period last year. Without support from its motorcycle segment, Honda’s overall performance would have deteriorated substantially. In China, Honda’s vehicle sales have declined for five consecutive years, falling 24.28% year-over-year to just 647,000 units in 2025. Facing mounting pressure from the transition to electrification, Honda announced it will scale back investments in electric vehicles (EVs) and instead prioritize hybrid electric vehicles (HEVs). The company plans to launch 13 new-generation HEV models between 2027 and 2030, aiming to increase annual HEV sales to 2.2 million units and reduce system costs by 30%.