Honda EV’s strategy reshuffle: What happened to the US tax on vehicle purchases?

लगानी न्यूज

२८ फाल्गुन २०८२, बिहीबार १८:११March 12, 2026

. Japanese automaker Honda has signalled a major rethink of its electric vehicle (EV) strategy, citing changes in US policy, import tariffs and weak market demand.

The company said it estimated that the restructuring would cost about 2.5 trillion yen, or about $16 billion, after combining costs and losses.TAG_OPEN_div_31

Honda said in a statement that it made a strategic shift a few years ago with EVs at its core, believing that electric vehicles would be the best solution in the long run.TAG_OPEN_div_29 According to the company, the investment and production expansion were made on the basis of that vision, with plans to expand the use of electric vehicles.

However, recent changes in U.S. policy, particularly those related to import duties and incentives, have put pressure on the auto business’s profits, the company said.TAG_OPEN_div_27 The company said the removal of U.S. tax incentives on electric vehicles and loosening fossil fuel regulations had also changed the market environment.

At the same time, the competitiveness of its products in the Asian market is declining, the company said.TAG_OPEN_div_25 The company has also pointed out that it may have to cancel some of its investments, especially in China, due to increased competition.

The company said it had decided to cancel plans to develop and launch some EV models in North America after the electric vehicle market in North America appeared to be slower than expected.TAG_OPEN_div_23

According to Honda, the expense associated with the re-evaluation of the EV strategy and the loss of assets will have a significant financial impact.TAG_OPEN_div_21 These assets are primarily related to the infrastructure and infrastructure designed for the production of electric vehicles.

The company expects expenses and losses of up to 25 trillion yen in the current fiscal year. This is equivalent to about $ 15.7 billion.

As a result, the company is projected to incur a net loss of 420 billion to 690 billion yen by the end of the current fiscal year.TAG_OPEN_div_17 Earlier, the company had estimated a profit of about three trillion yen, but the current situation has reversed that forecast.