Whereas its losses from electrical automobiles (EVs) aren’t as giant as these posted by Ford (A$11.5 billion) and Stellantis (A$35 billion) lately, the automobile division of Honda stays within the pink, prompting the automaker to alter technique.
For the 9 months to December 2025 Honda’s automotive division posted an working lack of ¥166.4 billion (A$1.5 billion), which features a cost of ¥267.1 billion (A$2.5 billion) associated to tariffs within the US and one-time EV-related bills.
Based on Automotive Information, the automotive division has recorded 4 consecutive quarters of losses. Due to robust outcomes from the motorbike arm and monetary companies division, Honda general continues to be within the black with a ¥591.5 billion (A$5.4 billion) revenue.
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When requested how the corporate will reply to persevering with automotive losses, Noriya Kaihara, an govt vice chairman at Honda, informed the media, “Whereas our final objective [of carbon neutrality by 2050] stays unchanged, the pathway to reaching it’s evolving into a special kind from what we had beforehand envisioned”.
Kaihara-san mentioned Honda “we’ll rigorously reassess the timing of EV introductions” by “bearing in mind regional market circumstances”.
Because the US$7500 (A$10,500) federal EV tax rebate resulted in September 2025, electrical automobile gross sales within the US have slumped and the automaker doesn’t see it rebounding within the close to time period. Accordingly Honda “will focus our assets on ICE and HEV fashions” as a substitute.
GM presently produces the Prologue for Honda, and the Japanese automaker has put aside ¥20 billion (A$180 million) to compensate the Basic for decrease than anticipated orders and gross sales.
Honda acknowledges this pot of cash “could show inadequate”. Whereas the Prologue stays in showrooms and is accompanied by money incentives, Acura has axed the GM-supplied ZDX resulting from gradual gross sales.
As for China the place EV uptake is way greater, Kaihara-san admits the corporate is “lagging behind native producers in areas comparable to software program and inside applied sciences”. As such it transfer away from the present “self-reliant strategy [to] shift towards a method that’s extra deeply rooted within the Chinese language market”, and lean extra on “native suppliers”.
Not like different Toyota, Nissan and Mazda, Honda has thus far resisted utilizing EV structure and applied sciences borrowed from its native three way partnership companions.
It’s unclear if Honda will change tack right here, however Kaihara-san says there will probably be an intense give attention to price. He says the “know-how gained in China” will then unfold to different markets throughout Asia.
