Honda makes its first annual loss in 70 years

Japanese car giant Honda made its first annual loss in 70 years as its investments in the electric vehicle (EV) market failed to pay off. Demand for EVs has not been as strong as the company forecast, with Honda reporting a total operating loss for the year ending March 2026 of ¥423bn ($2.68bn: £1.99bn.). The firm said it was scrapping some of its EV production targets and would source parts from China, where prices are lower, to keep costs down. It cited changes in US policy as adding to its losses, including tax incentives having been taken away for US consumers purchasing EVs, and the imposition of tariffs. US consumers could previously receive up to $7,500 (£5,500) in tax credits if they purchased a new EV, but this was scrapped by President Donald Trump in September 2025.