Honda Posts First Annual Loss in Nearly 70 Years Amid $15.7 Billion EV Write-Down

Honda has announced its first annual loss since going public in 1957, hit by up to $15.7 billion in restructuring costs tied to its electric vehicle (EV) business. The Japanese automaker cited weaker-than-expected demand and the cancellation of three planned EV models for the U.S. market as key factors behind the massive write-down.

CEO Toshihiro Mibe described EV demand as having fallen sharply, making profitability “very difficult” to sustain. Honda also reported a writedown in the value of its China operations, where it faces strong competition from software-driven EV rivals like BYD.

The company now expects a net loss of up to 570 billion yen ($3.6 billion) for the fiscal year ending March, a dramatic shift from a previously forecasted profit of 550 billion yen. Following the announcement, U.S.-listed Honda shares dropped about 8% in premarket trading.

The move adds to a string of EV-related write-downs across the industry, bringing global automakers’ cumulative losses to around $67 billion, with companies like General Motors, Ford Motor Company, and Stellantis also reporting significant hits.

Honda executives, including Mibe and Executive Vice President Noriya Kaihara, will voluntarily forgo portions of their compensation to share the burden, as the company plans to unveil a revamped mid-to-long-term business strategy in the next fiscal year.