Honda forecasts $13 billion electric‑vehicle losses for FY2026‑27

Honda Motor Co. announced that it expects to record a total loss of about $13 billion linked to its electric‑vehicle (EV) strategy over the two fiscal years ending March 2026 and March 2027. The loss equals roughly three years of its operating profit and exceeds the company’s annual R&D budget.

For FY2026 the company booked a $9.2 billion loss on an operating‑profit basis (about $10 billion when equity‑method investment losses are included). About $7.5 billion of that amount was recognized in the fourth quarter, comprising $4.1 billion in termination and asset‑impairment charges and $3.4 billion for a strategic shift after cancelling planned North‑American EV models. Honda now projects a further $3.3 billion loss for FY2027, all classified as strategy‑change costs.

Despite the EV write‑offs, Honda reported a 13.5 % rise in net sales to ¥6,061 billion ($38.4 billion) and a 117 % increase in operating profit to $3.4 billion for the quarter ending June 2026. Hybrid vehicle sales grew to 249,000 units, while pure‑battery EV deliveries fell to 14,000 units.