Honda Motor said it expects to post its first annual loss since listing on the stock market in 1957, after booking up to $15.7 billion in restructuring costs tied to its electric-vehicle (EV) business, as demand for EVs weakens globally, according to a report by Reuters.

The Japanese automaker said it expects to incur charges of up to 2.5 trillion yen ($15.7 billion) after cancelling three EV models that had been planned for production in the United States, Reuters reported.

The company now expects a net loss of as much as 570 billion yen ($3.6 billion) for the financial year ending March, reversing an earlier forecast of a 550 billion yen profit. A spokesperson told Reuters this would mark Honda’s first annual loss since it listed publicly nearly seven decades ago.

Chief executive Toshihiro Mibe said EV demand had declined sharply, making it “very difficult” to sustain profitability in the segment, according to Reuters.

The automaker is also writing down the value of its China operations, where it has struggled to keep pace with increasingly software-driven vehicles from local competitors such as BYD, Reuters said.

Analysts had expected further EV-related losses from Honda, but the scale of the write-down surprised some observers. Julie Boote, autos analyst at Pelham Smithers Associates, told Reuters that the cancellation of the U.S. production programme was the biggest surprise.

“The main surprise was that the U.S. production programme was cancelled, rather than just scaled down. Honda had a very ambitious EV expansion plan, which was badly affected by the changing market environment,” Boote said, according to Reuters.

The development comes as several global automakers scale back EV investments amid slower demand and policy shifts. Under the administration of Donald Trump, the U.S. government has ended federal support for EVs, prompting manufacturers to reconsider their electrification strategies, Reuters reported.

Other automakers have also warned of major EV-related write-downs. General Motors has flagged a potential $7.6 billion hit, while Stellantis and Ford Motor have indicated write-downs of about $25 billion and $19 billion respectively, according to Reuters. Honda’s charge brings the industry-wide tally to roughly $67 billion.

Following the announcement, Honda’s U.S.-listed shares fell about 8% in pre-market trading, Reuters reported.

Beyond its core markets of Japan and the United States, Honda said it plans to strengthen its product lineup and improve cost competitiveness in India, which it sees as a growth market. Like the U.S., the Indian market is largely closed to Chinese automakers, making it a key focus for Japanese manufacturers facing rising competition across Asia, according to Reuters.

Honda also said Mibe and executive vice president Noriya Kaihara will voluntarily forgo the equivalent of 30% of their compensation for three months, while some other executives will take a 20% pay cut.

The company plans to unveil a revamped mid-to-long-term business strategy in the next fiscal year, Reuters reported.