Honda Suspends Parts of Electric Vehicle Expansion After Nearly $10 Billion Loss

The automaker said it is pausing a major electric vehicle investment project in Canada as it reassesses battery sourcing and North American production strategy.

The Honda logo is displayed at the Howdy Honda dealership in Austin, Texas, on March 18, 2024. Brandon Bell/Getty Images

Honda has posted its first annual operating loss in years after recording nearly $9.98 billion in electric vehicle (EV)-related losses, prompting the company to suspend major EV investments in North America and redirect resources toward hybrid vehicles.

The Japanese carmaker said on May 14 that its operating loss for the fiscal year ending March 31 totaled 414.3 billion yen ($2.7 billion), reversing a profit recorded a year earlier.