Honda Logs 423.9-B.-Yen Net Loss for FY 2025

Tokyo, May 14 (Jiji Press)–Japan’s Honda Motor Co. on Thursday reported a consolidated net loss of 423.9 billion yen in fiscal 2025, which ended in March this year, amid sluggish demand for electric vehicles in North America. Honda fell into the red for the first time since it was listed on the Tokyo Stock Exchange in 1957. In fiscal 2024, the company logged a net profit of 835.8 billion yen. For the latest year, Honda recorded 1,577.8 billion yen in losses associated with the sales suspension of some vehicle models following a review of its EV strategy prompted by the weak demand. However, it expects to post a net profit of 260 billion yen in the current year ending in March 2027, with additional EV-related losses estimated at 500 billion yen. For the next three years, Honda will focus on rebuilding its automobile business, aiming to chalk up an operating profit of over 1.4 trillion yen in the year ending in March 2029. “We take the huge loss seriously,” President Toshihiro Mibe told a press conference Thursday. “The automobile industry is in a period of structural transformation,” he also said. “It’s my duty to build a business that can tolerate change,” he added, emphasizing his intention to remain in office. Honda announced that it will strengthen its hybrid vehicle business as demand is increasing. It withdrew its target of making all new car sales EVs or fuel cell vehicles by 2040, saying that it will freeze indefinitely plans to build EV and battery factories in Canada. Honda is scheduled to launch a next-generation hybrid system in 2027 and introduce 15 models worldwide by fiscal 2029. On Thursday, it unveiled two prototype models equipped with the system. While positioning North America, Japan and India as key growth regions, Honda will enhance its cost competitiveness by incorporating local components and technologies in China, where it continues to struggle. The company incurred an operating loss of 414.3 billion yen in fiscal 2025, against the previous year’s profit of 1,213.4 billion yen. The balance deteriorated by 346.9 billion yen due to U.S. President Donald Trump’s high tariffs. Sales increased 0.5 pct to 21,796.6 billion yen. Global new vehicle sales fell 8.9 pct to 3,387,000 units, with declines posted in Japan, North America and Europe. A notable slump was seen across Asia, including China. For the current year, sales are expected to edge up to 3.39 million units. END [Copyright The Jiji Press, Ltd.]