{"id":123797,"date":"2026-03-15T18:07:43","date_gmt":"2026-03-15T21:07:43","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/899659922"},"modified":"2026-03-15T18:07:43","modified_gmt":"2026-03-15T21:07:43","slug":"iconic-carmaker-on-ropes-after-22-4bn-loss","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/15\/iconic-carmaker-on-ropes-after-22-4bn-loss\/","title":{"rendered":"Iconic carmaker on ropes after $22.4bn loss"},"content":{"rendered":"
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Honda has blamed the growth of Chinese brands, along with President Donald Trump\u2019s decision to wind back fuel standards and electric vehicle incentives, for an unprecedented financial loss.<\/p>\n<\/div>\n

The Japanese company will record a 2.5 trillion Yen loss ($22.4 billion) for the current financial year after it slammed the brakes on electric vehicle investment in the US.<\/p>\n

It represents the first full-year loss Honda in nearly 70 years as a listed company.<\/p>\n

MORE<\/b>: Shock reason Ford boss driving China EVs<\/a><\/p>\n

Honda was due to launch three electric cars in America, but decided to suspend plans to produce the battery-powered Honda 0 SUV, Honda 0 Saloon, and Acura RSX \u201cdue to a major policy change in the US\u201d, where \u201cdemand for EVs is declining significantly\u201d.<\/p>\n

Essentially, President Trump\u2019s decision to shift the US away from electric cars has cost Honda billions. <\/p>\n

A softened stance in Europe and other regions has also hurt Honda\u2019s bottom line. <\/p>\n

MORE<\/b>: Aus EV sales tipped to spike<\/a><\/p>\n

A statement released by the brand says \u201cthe profitability of Honda automobile business is currently declining due primarily to 1) the unfavourable impact of changes in US tariff policies on the gasoline and hybrid vehicle business and 2) a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development\u201d.<\/p>\n

\u201cIn addition, the automobile business environment surrounding Honda is undergoing significant changes, and the outlook remains uncertain,\u201d it said. <\/p>\n

MORE<\/b>: Fuel experts told to keep quiet<\/a><\/p>\n

\u201cPreviously, with stringent environmental regulations fully implemented in the US and other countries, Honda pursued EV adoption with strong determination that striving for carbon neutrality is a responsibility Honda, as a manufacture of mobility products, must fulfil for the future. However, in the US, the expansion of the EV market has slowed down due to several factors including the easing of fossil fuel regulations and revisions to EV incentives.<\/p>\n

\"Honda's<\/div>\n

\u201cMoreover, in China, what customers value more in automobiles is shifting from hardware features, such as fuel efficiency and cabin space, to software-based features that will continuously advance according to customer preferences.\u201d<\/p>\n

MORE<\/b>: Big changes for Honda after failed Nissan merger<\/a><\/p>\n

Honda says the \u201crapid emergence of newer EV manufacturers\u201d with shorter development cycles and better software expertise resulted in a \u201cdifficult competitive environment\u201d.<\/p>\n

\u201cHonda was unable to deliver products that offer value for money better than that of newer EV manufacturers, resulting in a decline in competitiveness,\u201d it said.<\/p>\n

\u201cHonda automobile business has fallen into an extremely challenging earnings situation due to various factors, including its inability to respond flexibly to these changes in the business environment, compounded by a decline in the profitability of gasoline and hybrid models due to the impact of newly imposed tariffs.\u201d<\/p>\n

Honda\u2019s trouble follows a proposed merger \u2013 or takeover \u2013 with Nissan that failed in early 2025. <\/p>\n

The company is not alone in struggling. Fellow Japanese brands Toyota, Subaru, Mazda and Nissan have recorded falls in share price in the last few weeks as Tokyo\u2019s car industry wrestles with the same issues Honda has identified \u2013 the rise of China, US tariffs and an ever-shifting regulatory environment. <\/p>\n

Originally published as Honda records first financial loss over EV cancellation<\/a><\/p>\n

<\/a><\/strong> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

… says \u00e2\u0080\u009cthe profitability of Honda automobile<\/span> business is currently declining due … EV development\u00e2\u0080\u009d. \u00e2\u0080\u009cIn addition, the automobile<\/span> business environment surrounding Honda is … competitiveness,\u00e2\u0080\u009d it said. \u00e2\u0080\u009cHonda automobile<\/span> business has fallen into an …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-123797","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/123797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=123797"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/123797\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=123797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=123797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=123797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}