Honda Motor Co., Ltd.
Basic Information
- Stock Code
- 7267
- Industry
- Transportation Equipment
- Category Detail
- Automobiles
- Prefecture
- Tokyo
- Establishment Year
- September 1948
- Listing Year
- December 1957
- Official Website
- https://www.honda.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Nissan Motor, Toyota, Mitsubishi Motors, Mazda, Suzuki, SUBARU, Mitsubishi Corp.
Overview
Honda Motor Co., Ltd. is a global transportation equipment manufacturer founded in 1948, holding the world's top position in motorcycle sales, highly acclaimed for automobile sales both domestically and internationally, and diversifying into mobility and environmental technologies.
Current Situation
Honda Motor Co., Ltd. maintained solid performance in the fiscal year ending March 2024, with consolidated revenue of 20.4288 trillion yen, operating profit of 1.3819 trillion yen, and net profit of 1.1071 trillion yen. It has solidified its position as the global leader in the motorcycle market, and its automobiles receive high praise in the US. The company also engages in diverse businesses such as general-purpose products, small jet aircraft, and robots, focusing on environmental technologies like the CVCC engine, fuel cell vehicles, and hybrid cars. In recent years, it has been accelerating the shift to electric vehicles (EVs), starting a partnership with Sony for EV business, and announcing plans to electrify all domestic vehicle sales by 2030. It is strengthening production systems worldwide, contributing to a sustainable society, and actively investing in new businesses. It has established sales networks domestically and internationally, continuing its field-oriented management led by a president with an engineering background. Moving forward, it will focus on expanding the EV market and strategic collaborations in the MaaS sector to achieve sustainable growth.
Trivia
Interesting Facts
- Super Cub is the world's best-selling motorcycle with over 100 million units produced cumulatively
- Founder Soichiro Honda was the first president; tradition of engineer presidents
- HondaJet brings innovation to the industry as an ultralight jet
- ASIMO is one of the world's first advanced bipedal walking robots
- Multinational sales and production spanning Japan, US, Europe, and India
- Corporate ethics questioned in response to overtime concealment scandal
- Developed the world's first automotive navigation system
- Clarity fuel cell vehicle faced adoption challenges but continues innovation
- Long maintained independent stance with limited large-scale tie-ups with majors
- Honda cars appear in numerous movies and anime
- Nationwide network of Honda Dream and Honda Cars dealerships
- Domestic factories have consolidated production functions in recent years for efficiency
- Has produced many famous motorcycle and car sports models
- Strengthened nurturing of new generation sports brands since 1990
- Honda cars appeared wielding weapons in Transformers
Hidden Connections
- Honda develops numerous high-performance sports models based on car racing technology
- Joint venture with Sony opening new domains in EV sector
- Partnership with GM achieves EV technology sharing and cost reduction for North America
- ASIMO robot technology applied to diverse robotics products
- Expanding factories in India and Indonesia contribute to global strategy in motorcycle market
- Pioneered global普及 of advanced fuel cell vehicles and i-VTEC engines in environmental tech
- HondaJet project noted as model for traditional automakers entering aviation
- CMs and campaigns collaborating with actors and musicians contribute to brand strengthening
Future Outlook
Growth Drivers
- Goal of full electrification of domestic four-wheel vehicles by 2030
- EV普及 expansion in key markets like North America and China
- Competitiveness enhancement through large-scale battery technology investment
- Expansion of MaaS and new mobility services
- Launch of new businesses via advanced aircraft and eVTOL development
- Ongoing development and普及 of technologies addressing environmental regulations
- Productivity improvement through smart manufacturing and AI utilization
- Strengthening global sales networks and regional adaptation
- Optimization of product portfolio to diverse customer needs
- Vehicle performance and safety enhancement led by software
Strategic Goals
- Achieve 100% electrification (EV/HV/FCV) of domestic four-wheel vehicle sales
- Series expansion and market scale growth of global EV models
- Expand HondaJet mass production in aviation and introduce new models
- Realize zero environmental load manufacturing processes
- Strengthen provision of digital and mobility services
- Maintain position in top 20 global brand rankings
- Build new revenue channels through diverse mobility forms
- Maintain in-house engineer development and innovative R&D systems
- Enhance sustainability through expanded social contribution activities
- Establish technology leadership via R&D investment and global partnerships
Business Segments
Automotive Parts Supply
- Overview
- Manufactures high-quality major parts for automobiles and motorcycles, supplying to the automotive industry domestically and internationally
- Competitiveness
- Stable supply through high technological prowess and proprietary development capabilities
- Customers
-
- Various automakers
- Motorcycle manufacturers
- Auto parts manufacturers
- Aftermarket service companies
- Products
-
- Engine parts
- Transmission parts
- Electronic control units
- Suspension parts
- ABS systems
Engines for General-Purpose Products
- Overview
- Supports industrial sectors by providing engines and related equipment adaptable to diverse applications
- Competitiveness
- Compact engine technology excelling in environmental performance and durability
- Customers
-
- Agricultural machinery manufacturers
- Construction machinery manufacturers
- Industrial machinery manufacturers
- Products
-
- General-purpose gasoline engines
- Generator engines
- Outboard motor engines
- Snow blower engines
Racing and Motorcycle Development
- Overview
- Applies racing technology to product development, providing competition models and parts
- Competitiveness
- Abundant racing experience and technological accumulation
- Customers
-
- Motorsports teams
- Racing divisions
- Parts retailers
- Products
-
- Racing motorcycles
- High-performance engines
- Custom parts
Aviation Parts and Systems
- Overview
- Provides aviation technologies centered on HondaJet development
- Competitiveness
- Advanced lightweight airframe design technology
- Customers
-
- Aircraft manufacturers
- Air transport companies
- Defense-related companies
- Products
-
- Jet engines
- Airframe structural parts
- Flight simulators
Logistics Services
- Overview
- Leverages in-house logistics network to provide high-quality transport and warehousing services
- Competitiveness
- Extensive domestic and international logistics network
- Customers
-
- Auto dealerships
- Industrial logistics companies
- Delivery companies
- Products
-
- Vehicle transport
- Packaging services
- Logistics system development
Environmental Technology Development
- Overview
- Conducts R&D on advanced environmental technologies and provides related products
- Competitiveness
- World-first mass-production technology for fuel cell vehicles
- Customers
-
- Public institutions
- Energy companies
- Research institutions
- Products
-
- Fuel cell vehicles
- Hydrogen stations
- Solar power systems
Manufacturing Equipment and Robotics
- Overview
- Provides advanced robot technologies to promote automation in manufacturing and logistics
- Competitiveness
- High-precision power transmission systems
- Customers
-
- Manufacturing industry
- Auto factories
- Logistics warehouses
- Products
-
- Manufacturing robots
- Automated inspection equipment
- Logistics transport robots
Real Estate Management and Services
- Overview
- Operates real estate and welfare businesses related to the group
- Competitiveness
- Comprehensive employee support system
- Customers
-
- In-house facility management
- External commercial facilities
- Employee welfare
- Products
-
- Company cafeteria operations
- Real estate leasing management
- Employee dormitory management
Education and Training Business
- Overview
- Operates specialized educational institutions to foster technicians and drivers
- Competitiveness
- Practical education-based talent development curriculum
- Customers
-
- Honda Group employees
- Related companies
- General skilled workers
- Products
-
- Auto mechanic training
- Driving skills courses
- Engineer training
Online Sales and Services
- Overview
- Builds sales networks and services leveraging digital channels
- Competitiveness
- Rapid response through direct operations and subsidiary collaboration
- Customers
-
- General consumers
- Corporate customers
- Products
-
- New car online sales
- Car sharing services
- Motorcycle rental services
EV Joint Development with General Motors
- Overview
- Jointly developing EVs for the North American market through partnership with GM
- Competitiveness
- Strategic alliance for cost reduction and technology sharing
- Customers
-
- Future EV buyers
- Auto dealers
- Products
-
- EV battery modules
- Common platform vehicles
Genuine Accessories Manufacturing
- Overview
- Develops and sells high-quality genuine parts to protect brand image
- Competitiveness
- Robust development and sales network
- Customers
-
- Honda used car distributors
- Dealerships
- Products
-
- Vehicle accessories
- Navigation systems
Competitive Advantage
Strengths
- Global brand power and rich motorsports track record
- World top-class share in motorcycles
- Advanced environmental technology in automobiles
- Diversified business expansion and global production system
- Development strength from engineer-led management
- Comprehensive domestic and international sales and service network
- Proprietary engine technology and fuel efficiency
- Abundant patents and intellectual property
- Long-term customer trust and brand loyalty
- Independent management stance
- Strong B2B business foundation
- Active investment in environmental and decarbonization technologies
- Advanced production technology and quality control
- New growth potential in robotics and aviation
- Sustainable supply chain management
Competitive Advantages
- World top share in motorcycle sales and broad product lineup
- Success in aviation business with small jet HondaJet
- Global production and sales network spanning numerous countries and regions
- Innovative environmental technologies (CVCC engine, fuel cells, i-VTEC)
- Product development efficiency improved by common architecture strategy since 2019
- Strong presence in multinational markets including Japan, US, Europe, China, and India
- Energy-efficient, high-performance powertrains through proprietary technology
- High technological prowess and image cultivated through motorsports
- Online direct sales system and car sharing expansion led in-house
- Flexible strategy including collaborations with major rivals
- Sustainable product innovation through abundant engineering resources
- Rapid decision-making by lean executive team
- Substantial R&D investment and long-term technological accumulation
- Cross-selling opportunities across diverse product categories
- Technology leadership ahead of environmental regulations
Threats
- Intensifying global competition and price wars
- Increasing capital burden for new technology development amid EV shift
- Global semiconductor shortages and supply chain instability
- Rise of local brands and new entrants in China and India markets
- Impacts from international political and economic fluctuations
- Challenges in fuel cell vehicle adoption and intensifying EV competition
- Rising adaptation costs due to stricter environmental regulations
- Labor issues and social challenges at overseas bases
- Technology leakage and patent disputes with competitors
- Delays in responding to rapid changes in consumer preferences
- Production and sales disruptions from natural disasters or pandemics
- Lagging in digital technologies and autonomous driving
Innovations
2024: ¥5 Trillion Investment Plan in Next-Generation Battery Technology
- Overview
- Accelerating development of high-performance batteries toward full EV transition by 2030
- Impact
- Contributes to increased EV range and cost reduction
2024: Accelerated Development of Next-Gen HondaJet
- Overview
- Speeding up development of new small business jet with lighter weight and improved fuel efficiency
- Impact
- Promotes competitiveness and technological innovation in aviation
2023: Progress in eVTOL Urban Air Transport Prototype
- Overview
- Announced concept for environmentally friendly vertical takeoff and landing aircraft, pioneering urban mobility
- Impact
- Aims to create new mobility markets
2023: Joint Development of North America EV Batteries with GM
- Overview
- Advancing joint design and development of EVs adopting GM's Ultium batteries
- Impact
- Builds foundation for development cost reduction and market expansion
2022: Joint Mobility Company Establishment with Sony
- Overview
- Plans development and sales of new EV brand integrating in-vehicle software and mechanical technologies
- Impact
- Strengthens new market competitiveness and product diversification
2022: Consolidation of Motorcycle Production at Kumamoto Plant
- Overview
- Consolidating mid-to-large motorcycles at Kumamoto factory for domestic production efficiency and capacity expansion
- Impact
- Improves production efficiency and quality control
2021: Launch of Online Vehicle Sales 'Honda ON'
- Overview
- Enhances customer convenience through online new car purchases
- Impact
- Expands sales channels and customer touchpoints
2021: Transfer of Car Sharing Service Every Go to Subsidiary
- Overview
- Transfers business to Honda Mobility Solutions to strengthen services
- Impact
- Enhances competitiveness in new mobility services market
2020: Start of Hydrogen Fuel Cell Truck Development
- Overview
- Joint venture with China to develop fuel cell trucks, promoting decarbonized logistics
- Impact
- Addresses environmental regulations and enters new markets
2020: Management Integration with Hitachi Subsidiary
- Overview
- Integration with Showa, Keihin, and Nissin Kogyo to strengthen parts business
- Impact
- Improves parts supply efficiency and competitiveness
Sustainability
- Development and global technology transfer of low-emission CVCC technology
- Promotion of CO2 reduction through HV and FCV普及
- R&D on solar cells and biomass energy
- Product development and production system overhaul to reduce CO2 emissions
- Ongoing desert greening activities in Inner Mongolia
- Promotion of fuel cell vehicle leasing sales
- Development of hydrogen station concepts and home fuel cell systems
- Strengthened battery research for EV expansion
- Environmental load reduction initiatives in production plants and logistics
- Sustainable supply chain management from material procurement to production
- Promotion of renewable energy utilization
- Technological innovation toward sustainable mobility society