Honda Suddenly Implodes

On March 12, Honda Motor announced that it expects an operating loss of ¥270 billion to ¥570 billion for fiscal year 2025 (April 2025–March 2026), revising downward from its prior forecast of ¥550 billion in operating profit; it also expects a net loss of ¥420 billion to ¥690 billion (approximately RMB 11.6 billion to RMB 24.7 billion), revising downward from its prior forecast of ¥300 billion in net profit. The company also announced on the same day that it had canceled the development and launch plans for some of its U.S.-made electric vehicles. It is expected that the total costs and losses from reevaluating its electrification strategy could reach up to 2.5 trillion yen (approximately RMB 108.2 billion). It is reported that this is Honda Motor's first annual loss since its launch.