Honda Motor Faces Over One-Year Low Amid Major Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
0mins
Should l Buy HMC?
Source: seekingalpha
- Stock Price Plunge: Honda Motor's shares fell 6.7% to 1,352 yen on Friday, marking a more than one-year low, reflecting market concerns over its financial health amid significant restructuring costs.
- Annual Net Loss Forecast: The automaker expects to incur an annual net loss of up to ¥2.5 trillion ($15.7 billion), marking its first such loss since its 1957 listing on the Tokyo Stock Exchange, indicating strategic missteps in the EV market.
- Cancellation of EV Models: Honda's decision to scrap three North American EV models, including the Honda 0 SUV, 0 Sedan, and Acura RSX, due to shifting market demand will directly lead to substantial restructuring charges, exacerbating financial pressures.
- Future Strategic Outlook: The company plans to unveil a detailed long-term strategy at a press conference in May, aiming to address current market challenges and reassess its EV investment direction to restore investor confidence.
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Analyst Views on HMC
About HMC
Honda Motor Co Ltd is a Japan-based company principally engaged in the motorcycle business, the automobile business, the financial service business and the life creation business. The Company operates through four business segments. The Motorcycle segment is engaged in the research and development, production and sale of motorcycles, all-terrain vehicles (ATVs), side-by-side vehicles and related parts. The Automobile segment is engaged in the research and development, production and sale of automobiles and related parts. The Financial Service segment is engaged in the sales financing and leasing of its products. The Power Products and Other Business segment is engaged in the research and development, production and sale of power products and related parts.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Middle East Market Disruption: The conflict will directly impact automotive sales in Iran and complicate inventory distribution and supply chain management in the Middle East, posing significant risks especially for rapidly expanding Chinese automakers.
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