Honda forecasts a net loss of 420–690 billion yen for the fiscal year ending this month, sharply revising its previous projection of 300 billion yen in profit. If confirmed, it would mark the company’s first net loss since its listing in 1957.

Amid weak financial results, the company’s CEO and vice president have agreed to cut their monthly salaries by 30% for three months starting in April 2026, and no performance bonuses will be paid this year.

Honda also announced it will halt development of three electric vehicle models planned for North America, citing declining demand for zero-emission vehicles.

Company president and CEO Toshihiro Mibe said achieving the previous EV targets under current conditions would be difficult and unrealistic.

In 2021, Honda pledged to phase out gasoline-powered vehicles by 2040, transitioning entirely to electric and hydrogen fuel-cell vehicles. However, growth in the EV market has slowed in recent years.

The company has also reduced planned EV investments by 2030 from 10 trillion yen to 7 trillion yen and lowered its EV sales target from 30% to around 20% of total sales.