Automaker Honda faces first annual loss in 70 years, shares slide nearly 6%

Honda stock ended the day 5.6% lower at 1,368 yen, making it the second-largest ⁠decliner ‌on the benchmark Nikkei 225 and marking the company's biggest ‌one-day fall since early Feb 2025.

Tokyo: Shares in Honda Motor closed ⁠down nearly 6% in Tokyo on ⁠Friday after the automaker flagged ‌its first ​annual loss in almost 70 years as a listed company, hit by up to $15.7 billion in restructuring costs ​tied to ⁠its electric-vehicle business.

Honda stock ended the day 5.6% lower at 1,368 yen, making it the second-largest ⁠decliner ‌on the benchmark Nikkei 225 and marking the company's biggest ‌one-day fall since early February 2025.

Japan's ⁠second-largest automaker said on Thursday it expects a hit of ‌as much as ‌2.5 trillion yen ($15.7 billion) as ‌it cancels three EV models ‌planned for production in the US.

It is likely to book as much as ⁠1.3 ⁠trillion yen of those costs this fiscal year and 1.2 trillion yen the next.

Honda is also writing down the value of its China business, where it has ​struggled to compete with rivals ​such as ​BYD offering more advanced, software-driven vehicles.