South Korean Media: First Net Loss in 69 Years, Honda Raises White Flag!

On April 13, South Korean media outlet The Pioneer Economy published an article stating that Honda, one of Japan's two major automotive giants, has effectively conceded defeat in the electric vehicle market.

Honda has halted development of its flagship sedan "Saloon" and SUV "Acura RSX," originally scheduled for launch next year, and canceled the research and development plan for its core electric vehicle model targeting global markets, the "Zero Series."

Lately, Honda President Toshihiko Mibu held a press conference, announcing the abandonment of key electric vehicle model development, saying: "I make this decision with heavy heart, in order to avoid burdening the future."

He added: "We have realized that our automotive business is facing a severe profit crisis due to various factors, including the impact of tariffs and declining profitability of internal combustion engine hybrid vehicles."

Since Toshihiko Mibu became president in 2021, Honda has pursued a relatively aggressive EV expansion policy among Japanese automakers, setting targets to achieve all-new vehicles being either electric or hydrogen fuel cell vehicles by 2040.

However, unable to overcome three major setbacks—falling behind Chinese EVs in price competition, suffering from tariff increases under the Trump administration, and stagnant EV demand—the company ultimately recorded its first net loss in 69 years. In the fiscal year 2025, Honda incurred a loss of 69 billion yen.

Honda plans to seek opportunities to turn around its losses in the future by shifting toward a strategy centered on hybrid vehicles.

Yet, Honda’s troubles extend far beyond this.

Honda had early ambitions in the robotics industry and launched the bipedal robot "Asimo" in the early 2000s, which was considered a groundbreaking innovation at the time; however, due to lack of significant achievements, Asimo ceased further development in 2018.

Since then, the robotics market has gradually been taken over by companies such as Tesla, Hyundai, and Chinese firms.

The New York Times pointed out that during industrial transformation, not only Honda but also several other traditional automakers, including Ford and General Motors, are losing competitiveness.

Nevertheless, The New York Times also noted that some companies have stood out by launching affordable and diverse electric vehicles, such as Toyota, Subaru, BMW, Volkswagen, and Hyundai.

Original article: toutiao.com/article/1862317758949450/

Disclaimer: The views expressed in this article are solely those of the author.