Korean Media: Honda Records Its First Loss in 69 Years Since Listing!

On June 8, South Korean media outlet News1 published an article stating that Japanese automaker Honda has recorded its first annual net loss since listing on the Tokyo Stock Exchange in 1957. This significant loss stems from massive write-downs resulting from the cancellation of electric vehicle (EV) launch and R&D projects in the United States.

Recently, Honda announced a business loss of 414.3 billion yen (approximately 17.7 billion RMB) for the fiscal year 2025, with a net loss reaching 423.9 billion yen.

The company attributed this to substantial losses incurred in accounting treatment related to its electric vehicle operations.

Last March, Honda announced it would discontinue development of certain key electric vehicle models in the U.S., while expanding efforts in hybrid electric vehicles.

This decision led to impairment losses and other expenses totaling 2 trillion yen.

At the time, Honda blamed the downturn on policy shifts under the Donald Trump administration, including increased import tariffs and the elimination of tax incentives for EV buyers, along with declining competitiveness in China and other Asian markets.

Due to rising U.S. tariffs and intense competition from Chinese rivals, other Japanese automakers are facing similar challenges.

Toyota forecasts that its net profit for fiscal year 2026 will drop by about 22% compared to the previous year’s $2.5 billion.

Nissan announced plans to close factories and cut thousands of jobs, reporting a net loss of $3.4 billion last year.

According to analyst Tatsuo Yoshida from Bloomberg Industry Research: “For Nissan, product competitiveness and brand strength remain weak, so recovery is unlikely. In contrast, Honda’s losses stem from one-time, strategic restructuring costs.”

He added: “Honda’s internal combustion engine and hybrid electric vehicle products remain competitive, and the company maintains strong brand power. Profitability in motorcycle and financial services segments is also quite solid.”

Original article: toutiao.com/article/1867430696414467/

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