Electric Vehicles Let Down: Honda Reports Loss for the First Time in Nearly 70 Years 0 14

According to the company's financial report, the operating loss for the year ending March 31 was 414.3 billion yen ($2.6 billion), compared to a profit of 1.2 trillion yen recorded in the previous fiscal year.

Honda has reported an annual operating loss for the first time in nearly 70 years as a public company. The loss is attributed to setbacks related to the company's revision of its electric vehicle strategy. In March, the automaker warned that it might write off up to 2.5 trillion yen due to a reassessment of its plans in this area. The reporting period included a write-off of 1.6 trillion yen.

Batteries Cancelled

Honda's CEO Toshihiro Mibe announced that the company is abandoning its goal of increasing the share of electric vehicles in new car sales to 20% by 2030, as well as its plan for a complete transition to selling electric vehicles and fuel cell vehicles by 2040.

Mibe also stated that Honda is indefinitely suspending its electric vehicle and battery production project in Canada, which was expected to involve investments of $11 billion. Honda sold 3.387 million cars (a decrease of 8.9%) and 22.101 million motorcycles (an increase of 7.4%) during the fiscal year.

The automaker expects to achieve a net profit of 260 billion yen and an operating profit of 500 billion yen for the current fiscal year. Honda plans to sell approximately 3.39 million cars and 22.8 million motorcycles this year.