Honda Motor Co. canceled two in-house electric models, scrapped two Afeela EVs co-developed with Sony, and said it will book up to $15.8 billion in charges amid mounting business challenges.
Honda has seen China sales fall from a 2020 peak of 1.62 million vehicles to about 640,000 in 2025, leaving roughly half of its manufacturing footprint underutilized; annual output for 2026 is projected below 600,000 units. Toshihiro Mibe, Honda CEO and President, visited a Shanghai supplier factory and, according to Nikkei Asia, said, "We have no chance against this."
Honda is restoring an independent R&D division by relocating thousands of engineers to a new engineering subsidiary intended to operate with greater autonomy after six years of centralized development, and Mibe told suppliers on his return, "We must act quickly" to accelerate product development.
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