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🇹🇼 Taiwan /Economy & Trade

Automakers Misjudge EV Strategy, Billions in Investment Lost as Honda Halts EV Plans

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Major global automakers, including Honda, are halting or adjusting their electric vehicle (EV) strategies due to miscalculations.
  • These companies face billions in losses and asset write-downs, totaling over $73 billion globally.
  • Honda is shifting resources from its EV plans to focus on more profitable hybrid models, forecasting its first annual net loss.

Global automakers are confronting the harsh reality of their electric vehicle (EV) strategies, with several major players halting or significantly adjusting their plans. This shift comes after years of pushing for electrification, driven by net-zero carbon emission goals and the phasing out of internal combustion engine vehicles.

Honda has announced it is canceling plans to produce three EV models for the North American market, admitting to a misjudgment of the EV strategy. Company president Toshihiro Mibe cited lower-than-expected demand in the U.S. market, coupled with changes in U.S. policy, reduced industry support, and intensified global competition, as reasons for the grim profit outlook. Honda now forecasts its first annual net loss in its accounting year ending March 2025, with an estimated 2.5 trillion yen (approximately $486 billion TWD) in related expenses and losses over the next two years. The company is redirecting resources towards its profitable hybrid models.

Beyond Honda, a collective of over ten renowned global car manufacturers, including Stellantis, Ford, General Motors, Volkswagen, Mercedes-Benz, BMW, Audi, Porsche, Bentley, and Lamborghini, have either halted or revised their EV strategies. These adjustments have resulted in cumulative losses and asset impairments exceeding $73 billion USD (approximately 2.3 trillion TWD).

Stellantis, which owns brands like Jeep, Maserati, Peugeot, and Chrysler, has reported the most significant financial hit. Its 2025 financial report indicates a staggering 25.4 billion euro (approximately 880 billion TWD) loss, contributing to a total annual net loss of 22.3 billion euros. This marks a rare instance of such a massive single-year write-down in automotive history. The industry's pivot reflects a challenging market environment where the widespread adoption of EVs has not met initial projections, forcing a strategic re-evaluation.

The actual demand for electric vehicles in the U.S. market is less than half of what was originally expected.

— Toshihiro MibeHonda President Toshihiro Mibe explaining the company's revised EV strategy due to lower-than-anticipated demand.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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