Honda CEO Faces Ouster by Elders Over China Strategy Blunder That Triggered First Loss in 70 Years

Honda Motor Co.'s current president, Toshihiro Mibe, has recently faced criticism from several retired senior executives, including former CEO Nobuhiko Kawamoto. These veterans accuse him of neglecting the Chinese market since taking office, leading to a continuous five-year decline in Honda's sales in China—from 1.62 million vehicles in 2020 to just 640,000 in 2025—and causing its market share to plummet from 8% to below 3%. Meanwhile, Honda reported its first annual net loss in nearly 70 years as a publicly listed company, amounting to ¥432.9 billion. Mibe has been criticized for excessively focusing on non-core activities such as golf sponsorships, straying from Honda’s traditional "genba-ism" philosophy, which emphasizes management’s deep involvement in frontline operations. After visiting China, he acknowledged that Chinese automakers have entered the "smartphone era," while Honda remains stuck in the "flip-phone era." As a result, Honda has halted three battery-electric vehicle (BEV) projects in North America, terminated its joint high-end EV development project with Sony called Afeela, and frozen its comprehensive EV supply chain plan in Canada. Costs related to winding down these suspended projects and associated asset impairments could reach as high as ¥2.5 trillion. Concurrently, the company has revised down its electrification targets, lowering its forecast for global BEV sales in 2030 to between 700,000 and 750,000 units annually and reducing its target BEV share from 30% to 20%.