Honda recorded ¥484.8 billion of EV-strategy-related operating charges in the quarter ended September 30, 2026. That already represents 93.2% of the ¥520 billion in EV-related operating losses it still forecasts for the full fiscal year ending March 31, 2027. The comparison comes from Honda's November 10 investor presentation, but the percentage is calculated from the company's original accounting table—not a measure of cash paid or proof that 93% of its broader EV restructuring is finished.1
If Honda's full-year charge estimate holds, the difference between the amount recorded and the forecast is just ¥35.2 billion. Honda has not reduced that full-year estimate since its August 5 forecast, even as it raised its companywide operating-profit outlook by 20%. The remaining amount is conditional arithmetic against a forecast, not a ceiling on future spending or losses.1
What is actually inside the ¥484.8 billion
The critical distinction is in slide 31 of Honda's original financial presentation, which separates charges recognized in operating profit from an item reported through its share of profit or loss of equity-method investments.1
| Honda's EV-strategy-related line item | Q2 FY March 2027 recorded | Full FY March 2027 forecast |
|---|---|---|
| Disposal and impairment of development assets/equipment, operating profit | –¥5.6B | –¥5.6B |
| Incremental expenses related to strategy change, operating profit | –¥479.2B | –¥514.4B |
| EV-related charges affecting operating profit | –¥484.8B | –¥520.0B |
| Share of profit/(loss) of equity-method investments, separate from operating profit | +¥49.7B | No separate amount shown |
Billions of yen. Figures are from Honda's November 10, 2026 presentation, slide 31. A dash in the original forecast table means no separate amount is presented; it should not be treated as a verified zero or future guarantee.1
The two operating categories add to ¥484.8 billion in charges for the quarter. Honda's separate positive ¥49.7 billion equity-method item changes the combined impact across the displayed accounting lines to negative ¥435.1 billion. It does not change the operating-profit charge to ¥435.1 billion, establish cash recovered from restructuring or show that electric cars generated ¥49.7 billion in operating profit.1
The full-year forecast allocates ¥514.4 billion to incremental strategy-change expenses and ¥5.6 billion to the asset-disposal/impairment category. Against the recorded Q2 figures, the entire ¥35.2 billion conditional forecast difference sits in the strategy-change category. These are accounting categories, not itemized supplier cash payments, and Honda can revise the forecast.1
How Honda raised its profit outlook anyway
Honda reported ¥648.7 billion in companywide operating profit for the six months ended September 30. It also presented ¥1,133.6 billion in adjusted operating profit, its own metric that excludes EV-related operating charges; displayed figures reconcile only to rounding precision. The adjusted number is not operating profit reported under the usual consolidated measure.1
For the full fiscal year ending March 2027, Honda increased its operating-profit forecast from ¥650 billion to ¥780 billion, or ¥130 billion / 20%, while leaving the ¥520 billion EV-related operating-charge forecast unchanged. Its company-defined adjusted operating-profit forecast is now ¥1.30 trillion. In its presentation, Honda pointed to motorcycle performance and North American demand for compact, fuel-efficient and hybrid vehicles among the reasons for the improved corporate outlook. None of those figures establishes that Honda's EV programs have turned profitable.1
The regional vehicle-sales forecast shows another distinction obscured by the consolidated headline. Honda cut its Honda Group automobile sales expectation from 3.39 million to 3.16 million vehicles, a 230,000-unit (6.8%) reduction. Here is the change by region, taken from the original slide 13:1
| Honda Group automobile forecast, FY March 2027 | Revision from prior forecast |
|---|---|
| Asia, including a 230,000-unit reduction in China | –230,000 |
| North America | +30,000 |
| Japan | –15,000 |
| Other regions | –15,000 |
| Europe | No change |
| Worldwide Honda Group total | –230,000 |
These rows reconcile: North America's increase is offset by Japan and other-region reductions, leaving the Asia reduction equal to the global net decline. Honda's separate consolidated automobile unit-sales forecast remains 2.82 million, not 3.16 million. Neither series is a measure of battery-electric sales specifically, so the North American increase is not evidence of a BEV recovery.1
Honda had already announced the cancellation of the Honda 0 SUV, Honda 0 Saloon and Acura RSX programs in March 2026, along with an uncertain potential loss estimate of up to ¥2.5 trillion across relevant periods. The new ¥484.8 billion figure is a recognized charge in the current fiscal year's operating results, not an additional November model cancellation or proof of cash payouts against that older multi-period upper estimate.21
Sources
Footnotes
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Honda Motor Co., Ltd., Fiscal First Half Year Ended September 30, 2026: Financial Results Presentation, published November 10, 2026. Original issuer investor presentation, especially printed slides 2, 13 and 31. Establishes recorded EV-related operating charges, components, separately classified equity-method share, annual forecast, and Honda Group versus consolidated unit forecasts. Calculated 93.23%, ¥35.2B, 6.78% and regional bridge are ATC arithmetic from these figures. Interested-company results and forecasts; not independent proof of cash disbursements or future outcomes. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11
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Honda Motor Co., Ltd., “Honda Announces Losses Associated with Reassessment of Automobile Electrification Strategy”, March 12, 2026. Original dated cancellation/reset and maximum multi-period loss-estimate announcement; the historical estimate is not a booked FY2027 amount. ↩