Honda Inc. recorded its first annual loss, a staggering $2.7 billion, after scrapping electric‑vehicle plans in the United States and halting its China operations. Corporate losses from EV projects alone hit roughly $10 billion.

The company canceled three U.S. EV models—a SUV, a sedan and an Acura luxury car—and terminated a joint venture with Sony. An indefinite freeze on a Canadian plant that would have produced EVs, batteries and materials follows.

Chief Executive Toshihiro Mibe said Honda would abandon the 2040 EV‑only target set in 2021, citing the need to build a resilient business structure amid uncertainty. The move signals a sharp retreat from the global shift toward electrification.

Investors now face a redefined risk profile for Honda, as the automaker pivots away from high‑growth EV markets toward conventional internal‑combustion vehicles.