Honda Motor has posted its first annual loss since 1957, recording 423 billion yen or $2.68 billion for the financial year that ended in March. The company confirmed the figures on May 14, attributing the shortfall mainly to heavy spending on electric vehicles.
The Japanese automaker had already forecast the loss in March. Official results released last Thursday matched those predictions and marked the worst performance since Honda listed on the stock exchange in 1957. Chief executive Toshihiro Mibe linked the outcome directly to substantial investment costs in electrification, noting weaker-than-expected returns particularly in the United States after tax credits were removed in September 2025.