Honda forecasts a net loss between 420 and 690 billion yen, equivalent to up to approximately 3,7 billion euros, for the fiscal year ending in late March, reversing the previous estimate of a 300 billion profit. The announcement, made public in recent days, reflects a significant revision of the group’s financial outlook, with a simultaneous worsening of operating estimates. In this sense, the expected operating loss is now between 270 and 570 billion yen, compared to the previous estimated profit of 550 billion. To contain the economic impact, management has introduced rationalization measures, including a 30% cut in monthly pay for three months for the CEO and vice president in the 2026 fiscal year.
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Honda revises estimates downwards
As part of the strategic reorganization, Honda confirmed the discontinuation of development for three electric models destined for the North American market and also announced a cut in investments in the EV sector for the period up to 2030. Specifically, it will go from the previous 10.000 billion yen to 7.000 billion. The EV penetration target in the global portfolio has also been scaled back, from the previously expected 30% to approximately 20% by 2030.
The Japanese automaker attributes its choices to three substantial factors: the slowdown in global demand for 100% electric vehicles, regulatory changes in the USA including possible import tariffs, the removal of tax incentives and the easing of fossil fuel regulations, and the intensification of competition in Asia, with particular reference to China, where investment write-downs may become necessary.
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Long-term targets do not change
Despite the cuts and the revision of medium-term targets, Honda reaffirms its long-term commitment: the goal of marketing exclusively zero-emission models by 2040 remains confirmed, aligning with the decarbonization commitments announced five years ago. The new strategy appears oriented towards greater caution regarding EV investments and a reallocation of resources, while the group evaluates the evolution of demand and the international regulatory context to define the next steps in the energy transition.
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