Honda is the latest automaker to write off some major EV-related losses for 2025, and the latest to announce a pullback on its electrification strategy.

　　Its expected that for the nine-month period finishing at the end of December 2025, the write-offs for Hondas EV-related investments will be $1.71 billion USD. The last quarter of last year was the fourth straight the automaker racked up operating losses. Hondas current fiscal year is not ended, but one industry estimate predicts it could conclude with total losses of almost $4.5 billion USD.

　　Not surprisingly, Honda has postponed several planned EV launches in the near-term. It had planned a three-row electric SUV for North America, for example, but thats not been shelved. Looking farther ahead, Executive VP Noriya Kaihara stated recently that the automaker will have to conduct a fundamental review of our strategies to rebuild our competitive strength.

　　GM partnership peters out

　　While the losses accumulate, Honda is also putting an end to the collaboration deal with General Motors for development of EVs. That partnership has not proven particularly fruitful for the Japanese automaker. It made use of GMs Ultium EV platform for both the Acura ZDX and the Honda Prologue; the first is gone after only one year on the market and the second has yet to live to sales expectations.

　　Its believed that Honda has paid compensation to GM for reducing the number of vehicles it is purchasing from the U.S. automaker.

　　Lowering EV ambitions

　　It wasnt so long ago that Honda proclaimed it intended to surpass 2 million sales of EVs by 2030 - it was in 2024 in fact. The plan then was to reach 30-percent EVs sales be EVs by that year; last year, the company revised that target downwards to 20 percent.

　　A lot has changed since 2024, not least the sea change in government attitudes and policies towards EVs in the U.S., a market that accounts for roughly half of Hondas worldwide sales. Tariffs have also helped waylay Hondas best laid plans there.

　　Honda still maintains its plan to launch the first of its Honda 0 series of EVs, an SUV, and the Acura RSX is still on track to come to market. But for the rest, plans are being revised as we speak. Kaihara confirms the company is going to significantly revise our future EV strategy. We can expect some sort of elaboration of the new strategy in the coming months.

　　The Honda-e concept | Photo: Honda