Honda previewed two new hybrid prototype models as it reported its first annual loss in 70 years, taking a 1.45 trillion yen (about $9.2 billion) EV-related hit that drove operating losses to 414.3 billion yen (about $2.6 billion) for the fiscal year ended March 2026.
The Japanese automaker used a recent business update to unveil the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype, both scheduled to go on sale within the next two years.
Executives said the vehicles are the first in a new generation of hybrids that will begin rolling out from next year, built on a redesigned hybrid system and platform aimed at boosting fuel economy and cutting costs, according to Electrek.
Honda said it plans to launch about 15 new hybrid models globally by the end of the decade as it reallocates factory capacity and battery production toward hybrids and gasoline models.
Honda's operating loss of 414.3 billion yen (about $2.6 billion) for the year compares with a 1.2 trillion yen (around $7.6 billion) profit a year earlier and marks its first annual deficit since it listed in Tokyo nearly seven decades ago.
EV-related losses totaled 1.45 trillion yen (about $9.2 billion), reflecting writedowns and restructuring costs tied to canceling several battery-electric models and revising its broader electrification strategy.
The company has warned that total costs from its EV pullback could reach up to 2.5 trillion yen (roughly $16 billion), with about 500 billion yen (around $3.2 billion) in additional expenses expected in the current fiscal year, GDNOnline reported.
Honda has scrapped plans for multiple dedicated EVs, including models that were to be built at its new EV hub in Ohio, and will instead use that capacity to expand hybrid and combustion-vehicle production.
It is also converting a portion of its joint-venture battery plant with LG Energy Solution from EV packs to hybrid batteries to match its revised product mix.
At the same time, Honda has cut longer-term EV sales targets, citing weaker-than-expected demand, high tariffs, and fierce price competition from Chinese and U.S. electric-car makers.
Despite the loss, Honda maintained its dividend forecast and issued guidance that projects a return to profit in the current year as hybrid volumes rise and restructuring costs peak.
Management says a stronger hybrid lineup, alongside more selective EV launches and growth in motorcycles and other businesses, should put the company back on a more sustainable footing after its costly EV reset, as per Reuters.
Originally published on vcpost.com
