Core Viewpoint - Honda Motor Company has revised its fiscal-year 2026 outlook downward due to a reassessment of its electric vehicle (EV) strategy, leading to a decline in its stock price [1] Group 1: EV Strategy Reassessment - Honda has canceled the market launch and development of certain EV models planned for North America as part of a broader review of its electrification strategy, citing changing business conditions such as the abolition of tax incentives for EV purchases and easing fossil fuel regulations [2] - The company anticipates significant losses associated with this strategy review, estimating operating costs and expenses between 820 billion yen and 1.12 trillion yen, along with losses from equity-method investments ranging from 110 billion yen to 150 billion yen [3] Group 2: Financial Outlook Revision - Honda has revised its consolidated financial outlook for the fiscal year ending March 31, now expecting an operating profit loss between 570 billion yen and 270 billion yen, compared to a prior forecast of 550 billion yen in operating profit [4] - Profit attributable to owners of the parent is now projected to range from a loss of 690 billion yen to a loss of 420 billion yen, in contrast to the earlier forecast of 300 billion yen in profit [4] - Revenue guidance remains unchanged at 21.1 trillion yen for the fiscal year [5] Group 3: Stock Performance - As of the latest data, Honda shares are trading 6.43% lower at $25.77 [6]

四輪電動化戦略の見直しに伴う損失の発生 および今後の方向性について Incurring losses associated with the reassessment of Automobile electrification strategy and the future direction of Honda 2026年3月12日 March 12, 2026 四輪事業を取り巻く環境変化 Changes in Automobile Business Environment 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 EV拡大トレンド Trend of EV Expansion ●ACC II規制採択 （未達の場合は2万ドル/台の罰金） Adoption of ACC II regulations (Up to US$20,000 penalty per non-compliant vehicle) ●IRA補助金導入開始 Implementation of the Inflation Reduction Act (IRA) EV市場の鈍化傾向 ...

Group 1 - The core viewpoint is that the Chinese automotive industry is expected to achieve record production and sales figures in 2025, with cumulative production reaching 34.53 million vehicles and sales at 34.40 million vehicles, representing year-on-year growth of 10.4% and 9.4% respectively, maintaining a production and sales scale above 30 million for three consecutive years and remaining the world's largest for 17 years [1] Group 2 - From an industry lifecycle perspective, the Chinese automotive sector is entering the mid-to-late stage of the electric and intelligent transformation, characterized by the coexistence of traditional fuel vehicles, electric intelligent vehicles, and future industries represented by autonomous driving, necessitating a structured investment approach based on different industry curves [2] - The automotive sector is no longer a single investment track, and it is essential to implement layered and phased structural investment layouts according to the stages of different industry curves [2] - Key trends in the automotive industry include: a long-term space provided by scrappage gaps, the push from new forces for structural upgrades in exports, the deepening trend of "mass pure electric + high-end range extension," and the reinforcement of the Matthew effect as the industry enters the "late mass" stage [2] - The growth of new energy heavy-duty and light-duty trucks is entering an acceleration phase, while high-perception intelligent cockpit configurations are reshaping purchasing decisions [2] - The importance of SOC is significantly increasing as intelligent driving accelerates along the "end-to-end" and "intelligent driving equality" paths, with three major autonomous driving commercialization scenarios poised for explosive growth [2] Group 3 - The domestic automotive market is characterized by accelerated electrification penetration and the strong rise of domestic brands, driven by policy incentives and technological innovations, with the intelligentization advantage of domestic brands being a key factor in their sales growth [3] - The competitive focus of the automotive industry is gradually shifting towards the intelligentization field, where leading companies with superior training data, training facilities, and intelligent driving ecosystems are expected to capture more market share [3]