Honda reports first-ever loss

By Alimat Aliyeva

Honda has reported a financial loss for the first time in about 70 years, marking a significant moment in the company’s long corporate history, AzerNEWS reports.

According to its fiscal year 2026 report (ended March 31, 2026), published on May 14, the company posted a net loss of 423.9 billion yen (approximately 4.87 billion manats). This represents a sharp decline compared to the previous year, when Honda was still operating at a profit.

Despite the loss, Honda’s revenue actually increased slightly by 0.5%, reaching 21.80 trillion yen (around 250.7 billion manats). This indicates that the company’s challenges were not driven by falling sales, but rather by rising costs and major strategic adjustments.

The main factor behind the loss was a large-scale restructuring of its electric vehicle (EV) strategy. Honda recorded significant one-off expenses totaling 952.6 billion yen (about 10.95 billion manats) as it revised its long-term EV plans amid changing market conditions and intensifying global competition.

Interestingly, many automakers are currently reassessing their electrification strategies, balancing full EV development with hybrid technologies. Honda, in particular, has been strengthening its hybrid lineup, viewing it as a more stable transition path while global EV demand remains uneven across regions.

Analysts also point out that the company is facing increasing pressure from rising software development costs for “smart vehicles” and the highly competitive EV market, where both traditional carmakers and new tech-focused players are competing aggressively.