Honda, Late to the EV Party & Putting in Half-Hearted Efforts, Now Disappointed with Results

Honda has been one of the biggest laggards in the auto industry when it comes to full vehicle electrification. It took forever to bring a long-range electric vehicle to market, and then outsourced it — the Honda Prologue is really a GM vehicle underneath. Honda executives have made countless negative comments about electric vehicles, and the company’s efforts to turn its loyal customers into EV fans and buyers have been nearly nonexistent.

Now, the company has reported a very poor quarter in terms of sales and finances, and it is blaming this on EVs while reconsidering whether it wants to maintain its previous electrification plans. Where’s the facepalm emoji when you need it? Honda is almost last to the EV party, has barely put any effort into electrification, and is already thinking about going backward. (How did this brand get so big and popular?)

“Japanese automotive giant Honda is reassessing its strategy for electric vehicles as it navigates challenges stemming from the high costs of EV development, flattening EV demand, and the impact of U.S. tariffs,” Autoblog writes.

“In the first quarter of its 2025-2026 fiscal year (April 1 to June 30, 2025), Honda took a one-time charge of ¥113.4 billion (~$780 million) related to its EV-related troubles. In total, the impact of the EV charge and its exposure to tariffs took a toll on Honda’s operating profit during the quarter, as earnings fell to ¥244.1 billion (~$1.69 billion) from ¥484.7 billion (~$3.35 billion) just one year ago.

“During a press conference on August 6, Tokyo time, Honda Managing Executive Officer Eiji Fujimura attributed the nearly $780 million charge regarding EVs to its mistakes, adding that they aren’t ‘optimistic’ about the future of electric vehicles.”

It just blows my mind that the company execs would think that they could be anti-EV for years and then flick a switch and expect their customers to not have been influenced by that. Or is it about the tariffs, EV policy changes in the US, and simply a continued, consistent lack of faith and interest in EVs?

Honda does rely on the US market much more than most automakers. The world is now reaching quite high levels of EV sales, with pure EVs (BEVs) accounting for 15–18% of new vehicle sales, and plugin vehicles overall accounting for 24–28% of new vehicle sales. However, much of that is coming from EV growth in China and Europe, where Honda doesn’t exactly shine. The US is a lagging market and looks to lag even more with Donald Trump and his cave-dweller party now running the show. So, in that respect, if Honda is primarily thinking about how to perform well in that market and in Japan, a similarly lagging market, in the next few years, maybe it is right that EVs won’t do great. Though, already so far behind and with continued growth in the EV sector, can Honda afford to keep dragging its feet and gaslighting its customers?

Regarding China, where more than 50% of new vehicle sales are now plugin vehicles, the company has been trying to electrify, but it’s been doing a poor job of that.

“We are struggling with EVs there,” Honda Managing Executive Officer Eiji Fujimura said this week. “We are underachieving against the initial plan.” He admitted that Honda’s EVs were not as cost competitive and not as well connected (as advanced technologically) as competing Chinese EVs. In other words, Honda just isn’t doing a great job with its EVs, so its sales are not as high as it had hoped. It’s almost like Honda has never understood EVs and the potential of EVs, and it still doesn’t.

“Honda is losing confidence in its grand plans for electric vehicles,” Automotive News summarized. Grand plans? When has Honda ever had grand plans? Honda has had meek plans, lame efforts, and tons of excuses. After the shortest of moves toward “grand plans,” it is quickly reverting to its behind-the-curve, self-sabotaging, uninspired approach to the new electric era.

Seriously?