Honda reports first loss since 1957 as it waters down EV strategy, but shares rise on 2026 forecasts
Key takeaways
- The Japanese carmaker pursued an aggressive switch towards electric vehicles that it's now trying to walk back.
- The company has embarked on a major overhaul of its electic vehicle (EV) strategy, particularly in its core market in the US, after previously betting on more rapid electrification of the industry.
- Honda had already warned of a sizeable financial hit as a result of this shift in March, meaning that investors were largely unperturbed by Thursday's financial data.
Why this matters: an international story with cross-border implications worth tracking.
The Japanese carmaker pursued an aggressive switch towards electric vehicles that it's now trying to walk back. Despite posting its first loss on record, its share price spiked on more buoyant predictions for 2026.
https://p.dw.com/p/5Dk TOCEO Toshihiro Mibe told reporters the company expected to get back in the black in 2026Image: Kim Kyung-Hoon/REUTERSAdvertisement Japan's second largest carmaker Honda on Thursday confirmed its first operating loss since 1957, before it started selling cars in the early 60s.
The company has embarked on a major overhaul of its electic vehicle (EV) strategy, particularly in its core market in the US, after previously betting on more rapid electrification of the industry.