Honda Reports First Loss Since 1957 as It Waters Down EV Strategy, But Shares Rise on 2026 Forecasts Honda's decision to scale back its electric vehicle strategy is a symptom of a larger issue afflicting the industry – one that has been exacerbated by government policies and changing consumer preferences.
The Japanese automaker's operating loss, its first since 1957, reflects the company's earlier overinvestment in electric vehicles.
The US government's scrapping of tax incentives for EV buyers under President Trump's administration had already dampened demand.