Honda Motor Co (HMC) said Thursday it now expects a fiscal 2026 loss of 105.07 Japanese yen ($0.66) to 172.62 yen per share, compared with the previous projection of earnings of 75.05 yen per share.

The revised forecast is a consequence of its decision to cancel the development and launch of three electric vehicle models planned for production in North America "due to various factors including recent changes in the business environment," the company said.

The change in direction will incur a 2.5 trillion yen charge, the company said.

The company said that it is shifting gears because the US had reversed plans on encouraging the use of electric vehicles.