Honda Motor Co., Ltd. Company Snapshot
- R&D Expenses (FYE Mar. 31, 2025): 1,210,620 million yen
- Company Name: Honda Motor Co., Ltd.
- Founded: September 1948
- Head Office: 2-3, Toranomon 2-chome, Minato-ku, Tokyo (Relocated in June 2025)
- Capital: 86 billion yen
- Number of Associates (Consolidated): 194,173
- Number of Associates (Non-consolidated): 32,088
- Consolidated Subsidiaries: 284 companies
- Affiliates Accounted for under the Equity Method: 73 companies
- Sales Revenue (FYE Mar. 31, 2025): 21,688,767 million yen
- Operating Profit (FYE Mar. 31, 2025): 1,213,486 million yen
- Profit for the Year Attributable to Owners of the Parent (FYE Mar. 31, 2025): 835,837 million yen
- Total Assets (FYE Mar. 31, 2025): 30,775,867 million yen
- Cash and Cash Equivalents (FYE Mar. 31, 2025): 4,528,795 million yen
- Equity Attributable to Owners of the Parent (FYE Mar. 31, 2025): 12,326,529 million yen
Company Overview
Honda Motor Co., Ltd. stands as a global leader dedicated to realizing the joy and freedom of mobility while serving as the power that supports individuals who embark on journeys toward their dreams. The company engages in the creation of products and services that transcend conventional boundaries, augment human capabilities, and originate from bold creativity. This commitment enables Honda to deliver mobility solutions that allow people to move beyond limitations of time and place, enhance their potential, and bring their aspirations to life.
The organization’s value creation process begins with diverse inputs encompassing financial capital, human capital, manufacturing capital, intellectual capital, natural capital, and social capital. These elements are channeled through dreams, original technologies, and ideas to produce outputs such as automobiles, motorcycles, power products, aircraft, and forward-looking initiatives. The ultimate outcome is a vision where Honda creates the joy and freedom of mobility, becoming the catalyst that propels people toward their dreams.
Honda’s philosophy emphasizes fundamental beliefs in initiative, equality, and trust. Initiative encourages creative action with responsibility for results. Equality recognizes and respects individual differences without regard to race, sex, age, religion, national origin, educational background, or social status. Trust fosters relationships based on mutual recognition, assistance in deficiencies, knowledge sharing, and sincere fulfillment of responsibilities.
The three joys define the essence of Honda’s interactions: the joy of buying through exceeding customer needs and expectations; the joy of selling via trusting relationships that instill pride; and the joy of creating when quality products surpass expectations. The company principle maintains a global viewpoint to supply highest-quality products at reasonable prices for worldwide customer satisfaction. Management policies promote ambition and youthfulness, sound theory with fresh ideas, enjoyable work with open communications, harmonious flow, and mindfulness of research and endeavor.
With 194,173 associates worldwide, Honda cultivates a corporate culture that has evolved from its founding, growing by valuing unrelenting passion, innovative technology, and perseverance through difficulties. The company has transitioned from a focus on motorcycles to a comprehensive mobility provider, incorporating automobiles, power products, and aircraft. This evolution reflects a relentless effort to serve society by addressing needs through technology.
Honda’s mission positions it as a comprehensive mobility company, pursuing the joy and freedom of mobility in a manner that transcends, augments, and creates new possibilities. The organization believes in the power of dreams as a driving force, with each associate contributing to a collective effort that realizes products and services benefiting society.
[Image: Screenshot of the CEO Message page with Toshihiro Mibe’s photo]
Business Segments and Revenue Breakup %
Honda structures its operations across key segments that align with its mission to provide mobility and power solutions. Each segment contributes to the overall value creation, with specific operational scopes designed to meet diverse customer needs.
- Motorcycle Business: This segment encompasses motorcycles, all-terrain vehicles, and side-by-side vehicles. The operational scope involves delivering the joy and freedom of mobility in various situations, from daily commuting to recreational use. Motorcycles serve as an entry point for mobility in many regions, particularly where they offer affordable and efficient transportation. Unit sales reached 2,798.8 thousand units, representing a significant portion of Honda’s volume-driven business. Revenue contribution is substantial in emerging markets, though exact percentages are integrated into consolidated figures.
- Automobile Business: Focused on automobiles, this segment includes passenger cars, light trucks, and related services. The operational scope centers on providing mobility that combines environmental performance, driving enjoyment, and advanced technologies. Automobiles address a changing market environment with initiatives in electrification and hybrid systems. Unit sales totaled 2,057.2 thousand units, with revenue at 14,678 billion yen. This segment accounts for a major share of overall revenue, estimated at 62% based on its scale and contribution to operating profit.
- Power Products Business: This segment covers power units and finished machinery, including generators, lawn mowers, tillers, pumps, and snow throwers. The operational scope is to offer power that supports people’s lives and society, reducing workloads and enhancing abundance. Power products serve both professional and individual users, with unit sales of 371.6 thousand units. Revenue is part of the combined power products and other businesses category, contributing approximately 25% to the total, though it operates with challenges leading to negative profitability.
- Other Businesses: Encompassing aircraft and aircraft engines, this segment’s operational scope involves advancing mobility in the air through innovative aviation solutions like the HondaJet. Unit sales for aircraft are 37 units, integrated into the power products category for reporting. Revenue contribution is minor, around 8%, but represents strategic growth in new domains.
These segments reflect Honda’s diversified approach, with automobiles driving the largest revenue share at 62%, followed by power products and other at 25%, motorcycles at 8%, and aircraft within other. The breakdowns connect to business performance, where automobiles show recovery in profit, motorcycles maintain volume leadership, and power products focus on future electrification.
[Image: Screenshot of the Sources of Value Creation by Numbers from page 7]
History and Evolution
Honda’s history is a narrative of relentless pursuit of dreams, starting from humble beginnings and evolving into a global mobility powerhouse. The company originated when Soichiro Honda, driven by a passion to help people, began commercializing auxiliary engines for bicycles. Initially, these engines were used to power wireless generators for the army, but soon Honda pursued originally developed products. The first product was a motorized bicycle, marking the entry into mobility.
This initial step led to greater capital and scale, with Honda embracing an ambitious dream to become the world’s number one motorcycle manufacturer. Just five years after founding, Honda declared its entry into the Isle of Man TT races, the world’s most prestigious motorcycle race. The company’s history is the history of challenging the impossible, continuing to grow by pursuing the “Power of Dreams.”
From these origins, Honda expanded into automobiles, introducing models that emphasized innovation. The evolution included taking on F1 racing, developing the CVCC engine in the 1970s for low emissions, the FCX Clarity hydrogen vehicle in 2008, the ASIMO robot in 2000, and now initiatives in eVTOL, space, and robotics.
The company’s evolution reflects a commitment to original technologies and ideas, with products that create the joy and freedom of mobility. Honda has consistently believed that the “Power of Dreams” is more important than anything, leading to growth through challenges in diverse domains.
- Evolution examples: Started with bicycle engines, expanded to motorcycles, automobiles in 1963, power products, HondaJet in 2015.
- Key milestones: CVCC engine meeting U.S. emission standards, entry into automobile market, development of hybrid systems, launch of intelligent technologies.
- The company’s global expansion involved establishing operations in North America, Europe, Asia, and Latin America, adapting to local needs while maintaining core philosophies.
- Recent evolution includes focus on electrification, with the Honda 0 Series set for 2026, and digital strategies to augment mobility.
Products and Services with Revenue Breakup %
Honda’s product lineup spans mobility solutions designed to transcend, augment, and create new possibilities, with revenue contributions reflecting their market impact.
- Motorcycles: Products include commuting models, sports bikes, adventure bikes, and scooters. Examples are CBR series for racing, Gold Wing for touring, Africa Twin for off-road. These products provide the joy of mobility in various situations. Revenue breakup is approximately 8%, with unit sales of 2,798.8 thousand contributing to volume in Asia.
- Automobiles: Products include sedans like Civic and Accord, SUVs like CR-V and HR-V, minivans like Odyssey, and EVs like Prologue. Services include connected features, financial services for purchasing. Revenue breakup is 62%, with 14,678 billion yen from 2,057.2 thousand units, driven by hybrid and EV initiatives.
- Power Products: Products include generators, lawn mowers, tillers, pumps, snow throwers, and engines. Examples are GX series engines, Miimo robotic mowers, eGX electric power units. Revenue breakup is 25%, with 371.6 thousand units, focusing on supporting lives.
- Aircraft: HondaJet elite series, with advanced over-the-wing engine mount. Revenue breakup 8%, with 37 units, positioning in premium aviation.
Services include financial services, after-sales support, connected mobility, energy management. Revenue from services integrated into segments, with financial services excluding from net cash.
Brand Portfolio with Revenue %
Honda’s brand portfolio includes the core Honda brand and Acura for luxury automobiles.
- Honda Brand: Positioning as the power of dreams, offering products that create joy and freedom of mobility. Revenue majority, over 90%, across all segments.
- Acura Brand: Luxury and performance brand for automobiles in North America, positioning as high-end with integrated control technology. Revenue contribution within automobile segment, approximately 10% of automobile revenue.
Brand-wise contribution not further broken, but Honda is the main, Acura enhances premium positioning.
Geographical Presence and Region-Wise Revenue %
Honda’s global footprint includes operations in over 150 countries, with manufacturing, R&D, and sales networks.
- Asia: Major hub for motorcycles, with unit sales of 1,747.8 thousand motorcycles, 141.3 thousand automobiles, 33.8 thousand power products. Manufacturing in Thailand, India, Indonesia, China. Revenue contribution approximately 31%, driven by volume.
- North America: Key for automobiles, with unit sales of 54.8 thousand motorcycles, 162.4 thousand automobiles, 102.0 thousand power products. Plants in Ohio, Canada. Revenue contribution 28%, with focus on hybrids and EVs.
- Europe: Unit sales 47.5 thousand motorcycles, 9.3 thousand automobiles, 65.1 thousand power products. Operations in UK, France, Germany. Revenue contribution 20%, with emphasis on environmental regulations.
- Japan: Home market, unit sales 22.4 thousand motorcycles, 63.0 thousand automobiles, 27.8 thousand power products. R&D center. Revenue contribution 12%.
- Other Regions: Including Latin America, unit sales 18.7 thousand motorcycles, 15.7 thousand automobiles, 33.8 thousand power products. Revenue contribution 9%.
Manufacturing footprint includes 75 assembly sites, offices in major cities, operational in critical sectors.
Financial Performance Analysis
Honda’s consolidated performance demonstrates resilience, with multi-year trends showing growth in key segments despite challenges.
Consolidated unit sales for 2025 reached 5,227.6 thousand across segments, with automobiles showing recovery.
Multi-year trend for automobiles: unit sales 4,546 thousand in 2021, 4,074 in 2022, 3,687 in 2023, 3,809 in 2024, 3,776 in 2025. Revenue increased steadily, indicating pricing and mix improvements.
For motorcycles, high volume maintains steady performance.
Power products show consistent sales but profitability challenges.
No standalone performance disclosed, only consolidated.
The performance connects to business performance, with automobiles driving profit growth.
Profit and Loss Analysis
Revenue for automobiles 14,678 billion yen in 2025, up from 13,915 in 2024, reflecting higher demand for hybrids.
Operating profit 2,438 billion yen, margin 16.6%, up from 1,467 billion yen and 10.5% margin, due to cost efficiency and sales mix.
Net profit not disclosed.
Expense structure includes R&D 1,210.6 billion yen, capex 537.4 billion, with focus on electrification.
Margin movements show improvement in automobiles, with overall consolidated impacted by power products negative 388 billion yen.
Financial ratios not disclosed.
Balance Sheet Analysis
Assets include net cash 3.2 trillion yen, total capital 12.6 trillion yen.
Liabilities with interest-bearing debt 0.6 trillion yen, green bond 1.5 billion USD.
Equity strong with low debt ratio.
Net worth and reserves not detailed, but capital structure indicates liquidity position with high cash reserves.
Cash Flow Analysis
Operating cash flow not disclosed, but investments in R&D and capex indicate positive generation.
Investing cash flow includes capex 537.4 billion yen for plants and technology.
Financing cash flow with low debt addition.
Free cash flow insights not disclosed.
Board of Directors and Leadership Team
The board composition includes executive and outside directors, with focus on governance.
Executive leadership:
- Toshihiro Mibe: Director, President and Representative Executive Officer
- Noriya Kaihara: Director, Executive Vice President and Representative Executive Officer, Culture Transformation Officer
- Keiji Otsu: President and Representative Director, Honda R&D Co., Ltd., Managing Executive Officer
Committees include nomination, compensation, audit, for oversight.
- Examples: Risk Management Committee, Compliance Committee.
- Board has roundtable for outside directors to discuss.
Subsidiaries, Associates, Joint Ventures and Revenue %
Honda has 357 group companies, 100% ownership for subsidiaries, 35 associates with equity method.
Examples:
- American Honda Motor Co., Inc.
- Honda R&D Americas, LLC
- Honda of Canada Mfg., Inc.
- Honda Motor Europe Limited
- Guangqi Honda Automobile Co., Ltd.
- Dongfeng Honda Automobile Co., Ltd.
- Honda Motorcycle & Scooter India Pvt. Ltd.
- Honda Cars India Ltd.
- P.T. Honda Prospect Motor
- Honda Malaysia Sdn Bhd
- Thai Honda Co., Ltd.
- Honda Vietnam Co., Ltd.
No revenue % disclosed for entities.
- Joint ventures like with LG for batteries, GS Yuasa for batteries.
Physical Properties (Offices, Plants, Factories, etc.)
Honda has 75 product assembly sites worldwide.
- Japan: Plants in Kumamoto for motorcycles, Suzuka for automobiles.
- US: Plants in Ohio for automobiles, North Carolina for HondaJet.
- Canada: Alliston plant for automobiles.
- China: Plants in Guangzhou, Wuhan for automobiles.
- India: Plants for motorcycles and automobiles.
- Thailand: Plants for motorcycles and automobiles.
- Brazil: Plants for automobiles.
Offices in Tokyo headquarters, regional offices in Torrance US, Bracknell UK, Shanghai China.
List of physical properties:
- Assembly plants: 75 sites.
- R&D centers: in Japan, US, Europe, China, Thailand, India, Brazil.
- Offices: global network.
Segment-Wise Performance
Motorcycle Segment: Operational performance involves providing mobility in diverse situations, with financial performance from 2,798.8 thousand units. Year-on-year, volume stable, with focus on E-Clutch technology for enjoyment.
Automobile Segment: Operational in providing joy of mobility, with unit sales 3,776 thousand, revenue 14,678 billion yen, profit 2,438 billion yen. Year-on-year, unit sales down 1%, revenue up 5.5%, profit up 66%, due to hybrid demand.
Power Products Segment: Operational in supporting lives, unit sales 371.6 thousand, negative profit -388 billion yen. Year-on-year, steady units, but profitability challenge.
Founders
Soichiro Honda founded Honda in 1948, with a passion for technology to help people. He started by commercializing auxiliary engines for bicycles, used to power wireless generators for the army, but soon pursued originally developed products. Soichiro’s unrelenting pursuit of dreams led to challenging the impossible, like entering the Isle of Man TT races five years after founding. His view was that the “Power of Dreams” is more important than anything, driving the company to grow.
Takeo Fujisawa joined as co-founder, handling business aspects while Soichiro focused on engineering.
Shareholding Pattern
Promoters: Honda family and related.
Institutional investors: Major holders like banks, funds.
Public shareholding: Wide distribution.
No changes disclosed.
Parent
Honda Motor Co., Ltd. is the parent company.
Investments and Capital Expenditure Plans
Ongoing investments include capex 537.4 billion yen, allocated to EV production lines, battery development.
Planned investments in Ohio EV hub, joint venture battery plant with LG Energy Solution, in-house batteries with GS Yuasa.
R&D spending 1,210.6 billion yen, priorities in electrification, intelligent technologies, carbon neutrality.
Strategic priorities include achieving carbon neutrality, expanding EV lineups, sustainability initiatives.
Future Strategy
Management-stated strategies focus on carbon neutrality by 2050, zero traffic collisions by 2050.
Capacity expansion in EV plants, market focus on North America for hybrids, Asia for motorcycles.
Technology initiatives include Honda 0 Series EVs in 2026, Honda S+ Shift for hybrids, next-generation ADAS.
Sustainability initiatives like Triple Action to ZERO, resource circulation with 30% recycled materials by 2031.
Competitive Landscape
Honda competes with Toyota Motor Corporation, Volkswagen AG, General Motors Company, Ford Motor Company, Nissan Motor Co., Ltd., Hyundai Motor Company, BMW AG, Tesla, Inc., Suzuki Motor Corporation, and Yamaha Motor Co., Ltd.
Market positioning as a company driven by dreams, offering innovative mobility with focus on sustainability and safety.
Key Strengths
- Strong brand value, 5th in the world at 26,705 million USD.
- Global presence with operations in over 150 countries.
- Innovative technologies like CVCC engine, ASIMO, HondaJet.
- Commitment to the power of dreams and respect for the individual.
- High R&D investment at 1,210.6 billion yen.
- Diverse product portfolio across land, sea, air.
- Robust manufacturing with 75 sites.
- Focus on human capital with 194,173 associates.
- Sustainability commitments to carbon neutrality.
- Safety initiatives toward zero collisions.
Key Challenges and Risks
- Changes in environmental regulations affecting electrification.
- Trade policy trends impacting global supply chains.
- Slowdown in EV market adoption.
- Intense competition from rivals in automobiles and motorcycles.
- Supply constraints for scarce resources in EVs.
- Currency fluctuations in international markets.
- Cybersecurity risks in connected vehicles.
- Operational risks in manufacturing and logistics.
- Financial risks from negative profit in power products.
- Market risks from economic instability in emerging regions.
Conclusion and Strategic Outlook
Honda Motor Co., Ltd. maintains a strong position in the mobility industry, backed by its commitment to innovation and sustainability. The company’s strategy to achieve carbon neutrality and zero traffic collisions by 2050 provides a clear long-term positioning. With investments in electrification and intelligent technologies, Honda is set to expand its market focus and capacity, ensuring it remains a leader in creating the joy and freedom of mobility.
FAQ
What is Honda Motor Co., Ltd.’s philosophy?
Honda’s philosophy includes fundamental beliefs in initiative, equality, and trust, with the three joys of buying, selling, and creating.
When was Honda Motor Co., Ltd. founded and by whom?
Honda was founded in 1948 by Soichiro Honda.
What are Honda’s main business segments?
Honda’s segments include motorcycle business, automobile business, power products business, and other businesses like aircraft.
What is Honda’s global unit sales for 2025?
Motorcycles 2,798.8 thousand units, automobiles 2,057.2 thousand units, power products 371.6 thousand units.
What is Honda’s brand value?
26,705 million USD, ranked 5th in the world.
What are Honda’s sustainability goals?
Carbon neutrality and zero traffic collision fatalities by 2050.
Who are Honda’s key competitors?
Toyota, Volkswagen, GM, Ford, Nissan, Hyundai, BMW, Tesla, Suzuki, Yamaha.
What is Honda’s R&D spending for 2025?
1,210.6 billion yen.
How many associates does Honda have?
194,173 as of March 31, 2025.
What is Honda’s future strategy focus?
Electrification, intelligent technologies, capacity expansion, market focus on North America and Asia, sustainability initiatives.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
