Honda Motor Co. said it recorded one-time charges related to electric vehicles (EVs) of 267.1 billion yen (about $1.7 billion) in the nine months ended Dec. 31. Meanwhile, U.S. import tariffs took an additional 279.5 billion yen (about $1.79 billion) in financial impact on the company.
The automaker cited slowing growth in the EV market, trade protectionism, supply chain risks and increased global competition as the main reasons for the strategy reassessment.
Honda’s executive vice president said the expected pace of electrification had not materialized, leading to a revision in the timing of EV launches, particularly in North America.
Despite the challenges in the automotive segment, Honda’s motorcycle sales showed strong results. Sales for the nine months reached a record 16.4 million units. This figure allowed the company to achieve an operating profit of 546.5 billion yen (about 3.5 billion US dollars) and partially offset losses in the automotive business.
