Honda has suffered operating losses for four consecutive quarters and is making major adjustments to its electrification strategy.While suspending many electric vehicle projects, it intends to shift its development focus to hybrid models and abandon its previous "pure electric as the core" layout route. Financial data shows that Honda’s cumulative losses in the first three quarters of fiscal year 2026 (as of December 31, 2025) were 166.4 billion yen, approximately 7.515 billion yuan.
Among them, impairment and related expenses for the electric vehicle business amounted to 267.1 billion yen, or approximately 12.063 billion yuan. The company expects losses related to the electric vehicle business to reach 700 billion yen, or approximately 31.614 billion yuan, for the full year.
Honda Executive Vice President Noriya Kaihara also said that companies must fundamentally reassess their strategies to restore market competitiveness.
Directly affected by the performance losses, Honda will terminate its in-depth cooperation with General Motors in the field of electric vehicles, reduce the purchase of Acura ZDX and Honda Prologue models based on the Autonon platform, and pay corresponding compensation to General Motors.
Honda has previously proposed a goal of achieving annual sales of 2 million pure electric vehicles by 2030. However, due to optimism about global pure electric demand and changes in the U.S. policy environment, this goal has been difficult to advance.
However, in this strategic adjustment, Honda has not completely given up on the pure electric field.It still plans to launch two pure electric models, the electric Acura RSX and the Honda 0 Series SUV, in 2026.Among them, the production version of the Honda 0 Series SUV will be the first to land in the North American market in the first half of 2026.
