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The
Japanese automaker said losses related to its EV operations are
estimated to total 2.5 trillion yen ($16 billion), incurred
mostly in the fiscal year just ended and the current fiscal
year.
Analysts say Honda Motor Co. might have been too ambitious too
fast, when many markets weren’t ready. As a result, Honda
abandoned many of its plans for EV models, including those in
the works in a joint venture with Sony Corp.
“EV demand has declined considerably, due to the rollback of
environmental regulations in the U.S. and other factors,” Honda
said in a statement.
The Trump administration has pulled back on incentive programs
for EVs and withheld money to states wanting to add more EV
charging stations, even as gas prices have soared over the war
in Iran.
Trump also blocked California’s stringent electric vehicle
mandates last year, backpedaling on the shift to environmental
models.
Trump’s tariffs on imported autos and auto parts, although
lowered to 15% from the initial 25%, also worked to dent Honda’s
profitability.
Tokyo-based Honda’s bottom line got a lift from its healthy
motorcycle business, helping Honda’s overall sales for the
fiscal year through March to rise 0.5% to 21.8 trillion yen
($138 billion).
Honda, which makes the Accord sedan and Super Cub motorcycles,
sold 3.4 million vehicles around the world in the fiscal year
through March, down from 3.7 million the previous year.
It sold 22.1 million motorcycles, up from 20 million a year
before. Honda dominates some markets in motorcycles, including
India.
Honda forecast a return to profit for the fiscal year through
March 2027, at 260 billion yen ($1.7 billion).
Chief Executive Toshihiro Mibe outlined a new growth strategy
that included a continued pursuit of carbon neutrality. But he
acknowledged the need to work on hybrids and regular
gasoline-engine models as well, not just electric vehicles.
When asked by a reporter whether he was considering stepping
down to take responsibility for the dire results, a common
response in Japan, Mibe said he wanted to carry out the revival
plan first.
“We will continue our research to develop future technologies
including electric vehicle batteries,” he said. “We will get
back on a growth track.”
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