Four Consecutive Quarters of Losses Warn: Honda Shifts Its EV Strategy

Like many global carmakers, Japan’s Honda is feeling the pressure of heavy investments in electric vehicles (EVs), with its operations posting losses for several consecutive quarters. The brand, which has a strong presence in Malaysia—remaining the top non-national passenger car brand for 12 consecutive years with 72,301 units sold in 2025—is now reviewing and adjusting its overall EV strategy to recover profitability.

According to Honda’s financial report, the company recorded impairment and related costs of approximately RM6.7 billion (around 267.1 billion yen) in the nine months ended December 31, all tied to its EV development plans. This has led to a cumulative operating loss of RM4.1 billion (166.4 billion yen) in the first three quarters of the current fiscal year, and industry media Automotive News predicts the full-year loss could reach nearly RM17.5 billion (700 billion yen), mostly from EV-related investments.

Honda Executive Vice President Noriya Kaihara stated that the company must rethink its existing strategy to regain competitiveness. A key move is scaling back its close EV collaboration with General Motors (GM), partly because two models based on GM’s Ultium Platform—the Acura ZDX and Honda Prologue—have underperformed in sales. For Malaysians, it is worth noting that Acura, Honda’s premium subsidiary, is not officially distributed locally but is available through parallel importers and reconditioned car dealers. The Honda Prologue, an all-electric SUV, offers a range of up to 495km (2WD) and 468km (AWD), with 220hp for 2WD and 300hp for AWD variants.

Honda previously set an ambitious target in 2024 to sell 2 million EVs annually by 2030, but the global EV adoption rate has been slower than expected. This shift in strategy is particularly relevant to Malaysia, where Honda Malaysia has been actively expanding its hybrid lineup—most recently launching the new CR-V e:HEV E and RS dual hybrid variants in March 2026, priced from RM178,200 to RM195,900. These hybrids are powered by a 2.0-liter e:HEV system with 184PS and 335Nm, offering three driving modes (EV, Hybrid, Engine) for optimal efficiency.

While Honda will continue to roll out some new EV models—such as the all-electric Acura RSX and Honda 0 Series SUV later this year—the brand’s overall focus has shifted significantly. It now aims to double its hybrid (Hybrid) sales to 2.2 million units by 2030, signaling a move away from betting solely on the EV market. For Malaysian consumers, this shift means more hybrid options in the local market, aligning with the growing interest in electrified vehicles seen in recent months.