Honda Motor expects financial charges of up to ¥2.5 trillion (about $15.7 billion) after reassessing its electric vehicle (EV) strategy, a move that could push the Japanese automaker into its first annual loss in decades.
The expected expenses relate to a review of the company’s EV plans for the fiscal year ending March 31 and the following years. Honda has decided to cancel the launch and development of some electric models as demand in the North American EV market has slowed.
The company also anticipates impairment losses tied to its investments in China, where competition in the electric vehicle sector has intensified significantly.
Honda’s decision reflects a broader shift among global automakers, many of which are adjusting their EV strategies as consumer adoption in key markets, particularly the United States, has been slower than expected.
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