Honda Cancels Market Launch of EV Models in North America
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 13 2026
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Should l Buy HMC?
The Board of Directors of Honda Motor yesterday resolved to cancel the market launches and development of certain electric vehicle models that had been planned for production in North America, NA. As part of its strategic reassessment in response to the slowdown of the EV market in North America, the Company has decided to cancel the market launches and development of certain EV models that were previously planned for production in North America. As a result of reassessment of automobile electrification strategy including this decision, the Company now expects to record losses including impairment and write-off losses on tangible and intangible assets that were intended to be used for the production of EV models whose market launches and development have been canceled, as well as losses related to additional costs due to the cancellation of development and sales. In addition, due to a reassessment of recoverability prompted by intensified competition in China, the Company now expects to record impairment losses on certain investments accounted for using the equity method in China. The Company expects to record the following losses in the consolidated financial statements for the fiscal year ending March 31, 2026: Operating costs and expenses between 820B yen and 1,120B yen, Share of loss of investments accounted for using the equity method between 110.0B yen and 150.0B yen.
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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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