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Honda Company Japan's fiscal year 2025 may see its first net loss since going public
Xinhua News Agency, Tokyo, March 12 (Reporter Liu Chunyan, Li Shimeng) — Honda Motor Co. announced on the 12th that due to U.S. tariff policies and declining competitiveness of its products in Asian markets, the company’s automotive business has recently experienced a decrease in profitability. It is expected that the company may report its first annual net loss since listing in the fiscal year 2025 (April 2025 to March 2026).
The announcement shows that Honda maintains its sales forecast for the 2025 fiscal year but has revised its operating profit outlook from a previously expected profit of 550 billion yen to a loss of 2.7 trillion to 5.7 trillion yen (1 USD ≈ 159 yen). Due to losses in its core business, net profit attributable to shareholders will shift from an earlier estimate of 300 billion yen to a net loss, with the maximum loss possibly reaching 690 billion yen. According to the Nikkei website, this will be the first time Honda has reported an annual net loss since going public.
Honda stated that due to the weakness of the North American electric vehicle market, the company has decided to halt development and sales projects for three electric vehicle models originally planned for North America. This decision to suspend projects is the main reason for the company’s asset losses and resulting losses. (End)
【Source: Xinhua News Agency】