Honda recorded its first annual loss in almost 70 years after taking a $9 billion charge to overhaul its electric-vehicle division. The restructuring aims to streamline manufacturing processes and reduce development costs as EV demand remains subdued.

The automaker also abandoned its long-term plan to have EVs account for 20% of new car sales by 2030, citing cost pressures and market dynamics. Management will now reassess its EV roadmap, potentially prioritizing hybrid models and strategic partnerships to mitigate risk.