Japanese automaker Honda Motor has reported a net loss for the fiscal year ending March 2026, marking the first annual net loss since its listing on the Tokyo Stock Exchange in 1957. The company's financial results for fiscal year 2025, covering the period from April 2025 to March 2026, show a net loss of 423.9 billion yen (approximately 18.2 billion yuan), compared to a net profit of 835.8 billion yen in the previous fiscal year. Sales revenue for the period was 218 trillion yen (about 9.366 trillion yuan), representing a slight increase of 0.5% year-on-year.

The primary factors contributing to the net loss include the costs associated with adjustments to its electrification strategy and the impact of U.S. tariff policies. Honda's performance forecast indicates that losses related to the electrification transition will continue to affect profits, although the impact is expected to be significantly reduced. The company anticipates a return to profitability in the 2026 fiscal year.

Meanwhile, fellow Japanese automaker Nissan Motor also reported substantial losses for the second consecutive fiscal year. For the fiscal year ending March 2026, Nissan posted a net loss of 533.1 billion yen (around 23 billion yuan), following a net loss of 670.9 billion yen in the previous fiscal year. The company cited a combination of factors, including sluggish global sales, the impact of U.S. tariff policies, and intensified inflationary pressures. Nissan's global sales, revenue, and operating profit all declined year-on-year for the 2025 fiscal year. The company stated that, apart from restructuring-related expenses, U.S. government tariff policies severely impacted its performance, reducing operating profit by approximately 286 billion yen. Nissan CEO Ivan Espinosa noted that rising crude oil costs due to the Middle East situation are expected to make the operating environment in the 2026 fiscal year very challenging.