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Honda plans to reduce EV investment by $20 billion to focus on hybrids amid a global sales slowdown. Its CEO cited regulatory changes and slowing EV growth as key reasons for a strategic shift.
Honda Motor plans to reduce its electric-vehicle investment by more than $20 billion through the fiscal year ending March 2031 from its original plan.
Honda Motor said on Tuesday that it was scaling back its investment in electric vehicles given slowing demand and would be focusing on capturing growing demand for hybrids with new models.
For fiscal 2026, Honda forecasts an operating profit of 500 billion yen, indicating a contraction of 58.8% year over year.
Honda Motor Co., Ltd.'s FY2025 earnings revealed resilient motorcycle and hybrid sales, but auto segment weakness and a 12% profit drop spooked investors. FY2026 guidance is ultra-conservative, reflecting worst-case U.S. tariff impacts and a significant step down in operating and net profit expectations. Management is mitigating tariff risks by reallocating production to U.S. plants, accelerating exports, and delaying major EV investments to preserve flexibility.
While the Zacks Foreign Auto industry is struggling with economic uncertainty, stocks like TM, HMC and NIO are expected to hold their grounds.
Pre-market futures are mixed after one of the best sessions in the stock market in years. With the surprise stepping-down of UnitedHealthcare ( UNH ) CEO Andrew Witty for “personal reasons,” effective immediately, the Dow component helped move the index -135 points at this hour.
Honda Motor Co., Ltd. (NYSE:HMC ) Q4 2025 Earnings Conference Call May 13, 2025 4:00 AM ET Company Participants Toshihiro Mibe - Director, President and Representative Executive Officer Noriya Kaihara - Director, Executive Vice President and Representative Executive Officer Eiji Fujimura - Director and Managing Executive Officer Conference Call Participants Operator Thank you for taking time to attend Honda's Financial Results Press Conference for the Fiscal Year Ended March 31, 2025.
U.S. equities were mixed at midday, boosted by tech stocks and a new report showing consumer inflation came in lower than expected. The Nasdaq was up 1.5%, and the S&P 500 rose almost 1%.
Honda (NYSE:HMC) Canada said it will postponing a C$15 billion (US$10.7 billion) electric vehicle investment project, which includes a proposed EV battery plant and retooled vehicle assembly facility, in Alliston, Ontario. Ken Chiu, Honda spokesperson, said the project will be postponed by approximately two years due to the recent slowdown in the EV market.