Honda Posts First Ever Annual Loss After Pullback From E.V.s

However, consumers were not quite ready. After an initial wave of early adopters propped up sales, some other mainstream buyers balked, largely because of lingering concerns about charging infrastructure and high sticker prices. Then, last year, federal subsidies for many electric models were effectively gutted under the Trump administration.

In 2025, electric vehicle sales fell about 4 percent from a year earlier in the United States, Honda’s biggest automotive market. That ended a half-decade-long, record-breaking growth streak for electric cars. The slowdown has also weighed on American majors. Earlier this year, Ford said its electric-vehicle division lost $4.8 billion in 2025 and would likely continue to lose money for at least two more years.

In March, Honda Chief Executive Toshihiro Mibe announced the cancellation of three major electric models originally destined for the North American market. An affordable line that Honda was developing with General Motors and a software-laden vehicle it was codeveloping with Sony have been put on ice.

Article source: https://www.nytimes.com/2026/05/14/business/honda-earnings-electric-vehicles.html