Honda Motor Reports ¥424 Billion Annual Loss After ¥1.58 Trillion EV Impairment Charge

Honda Motor posted its first full-year loss ever as a listed company after an aggressive push into electric vehicles resulted in a massive charge. 7 billion, in fiscal 2025. Fiscal 2025 for Honda Motor ended in March.

58 trillion hit on its EV business. “In response to the drastic shifts in the EV business environment, we have promptly reorganized our EV operations and investments,” Honda CEO Toshihiro Mibe said at a news conference. Mibe spoke as the company detailed the scale of the reversal from years of EV expansion.

58 trillion charge reflects writedowns and restructuring costs that overwhelmed the automaker’s other operations. Honda Motor had never reported a full-year net loss in its history as a public company before this result. The Japan Times published the account of the results on May 14, 2026.

Kazuaki Nagata wrote the article that laid out both the headline loss and the specific EV impairment. The loss marks a sharp turn for a company that had bet heavily on battery-powered vehicles to meet tightening global emissions rules and shifting consumer demand. Instead, slower-than-expected adoption and intense competition left Honda Motor with assets that no longer carried their prior value.

The reorganization announced by Mibe aims to resize those investments to match current market realities. 58 trillion dwarfed the eventual bottom-line loss of ¥424 billion, indicating that operational profits in other segments partially offset the charge. Still, the net figure pushed the company into uncharted territory for its public shareholders.

Mibe’s statement signaled that further adjustments to the EV program remain likely. The results come as automakers worldwide reassess the pace of electrification. Honda Motor’s experience illustrates the financial risks when forecasts for battery-vehicle demand prove overly optimistic.