Honda Motor anticipates booking expenses and losses of up to $15.7 billion due to a reassessment of its electric vehicle strategy. The Japanese automaker stated on Thursday that costs and losses stemming from the strategic review could reach as high as 2.5 trillion yen, approximately $15.73 billion, in the current fiscal year ending March 31 and in the coming years.

Honda announced that, in light of slowing electric vehicle market growth in North America, it has decided to cancel the launch and development plans for several vehicle models. Additionally, due to intensifying market competition, the company expects to record impairment losses on its investments in China.