Honda’s EV Bet Backfires As Automaker Faces Historic $2.5 Billion Loss

Honda Motor is staring down a financial hole it has not seen in nearly seven decades. The company is set to report an operating loss of around 400 billion yen ($2.55 billion) for the fiscal year ended March 2026, as per Reuters. It will mark its first operating loss since going public in 1957. To put that in perspective, the previous fiscal year delivered an operating profit of 1.2 trillion yen. The size of Honda’s operating loss would be the second largest among Japanese automakers, trailing only Toyota’s 461 billion yen loss during the 2008 to 2009 global financial crisis. Honda bet heavily on electric vehicles, and that bet went badly wrong.

Honda

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