Honda Loses $9.2B on EVs, Shifts to Hybrids
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- Honda took a $9.2 billion loss in EV-related costs for the fiscal year ended March 2026, marking its first annual loss since becoming publicly traded in 1957
- Honda canceled three planned EVs in the US, including the all-electric 0 Series SUV and sedan and the Acura RSX, reversing earlier ambitions to phase out gas-powered vehicles by 2040
- Honda will launch 15 new hybrid models globally by 2030, beginning next year with a new hybrid system that cuts costs by over 30% and improves fuel economy by more than 10%
- Honda previewed two upcoming models—the Honda Hybrid Sedan Prototype and Acura Hybrid SUV Prototype—slated for sale within the next two years
- Honda is reallocating its Ohio EV hub to hybrid and gas vehicle production and converting part of its LG Energy Solution battery joint venture lines to hybrid battery manufacturing
- Honda CEO Toshihiro Mibe confirmed the indefinite suspension of the $15 billion EV plant planned for Ontario, citing restructuring costs up to 2.5 trillion yen ($15.7 billion)
Why it matters: Honda’s pivot from EVs to hybrids shifts $15.7 billion in restructuring costs onto its balance sheet and delays carbon neutrality to 2050, giving rivals like Hyundai, Kia, and even Toyota a strategic lead in electrification while Honda bets on cost-efficient hybrids to regain competitiveness.
