Honda Motors reported its first annual loss in nearly 70 years, which came as a result of an emphasis on electric cars.
The Japan-based car company has been listed on the stock market since 1957, but the combination of electric vehicle bets and Trump trade policies led to its first-ever year in the red.
“EV demand has declined considerably, due to the rollback of environmental regulations in the U.S. and other factors,” Honda said in a statement, per a report from Fox Business.
The company faces $9 billion in restructuring costs because of the lackluster electric vehicle demand.
It suffered a $2.7 billion loss in the past fiscal year, according to a report from the Associated Press.
Honda was hit with $9 billion in restructuring costs based on low electric vehicle demand and President Donald Trump’s “Made in America” policies. https://t.co/xlXb8VndfW
— KTVU (@KTVU) May 19, 2026
Honda Motors CEO Toshihiro Mibe confirmed that it would scrap a previous target to make electric vehicles account for 20 percent of profits by 2030.
Total losses from electric vehicles are expected to hit $16 billion.
“We will continue our research to develop future technologies including electric vehicle batteries,” Mibe remarked, per Fox Business.
“We will get back on a growth track.”
The company will still set a goal of carbon neutrality.
Honda managed to cut their losses with growth in their motorcycle business unit.
It sold 20 million more motorcycles in the past fiscal year than the previous year.
Honda Motor posted its first annual loss in nearly 70 years as a listed company, hit by more than $9 billion in costs to restructure its electric-vehicle business, and the firm scrapped its long-term EV sales target https://t.co/oM92S3x1uW pic.twitter.com/ZKMdljCuGq
— Reuters (@Reuters) May 14, 2026
The Associated Press noted that Trump administration rollbacks of policies encouraging electric vehicle adoption contributed to the Honda losses.
The White House has withheld funds for states trying to create more charging stations, as well as blocked California from imposing an electric vehicle mandate.
Tariffs imposed by President Donald Trump on automotive parts were initially 25 percent, but were lowered to 15 percent.
The tariffs diminished profit margins for Honda.
Despite its current woes, Honda is still expected to pull a $1.7 billion profit for the fiscal year ending in March 2027, per Fox Business.
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