Honda Motor Co., Ltd. (Honda) develops, manufactures, and markets motorcycles, automobiles and power products globally.
Honda’s business segments are the Motorcycle business operations, Automobile business operations, Financial services business operations, and Power products and other businesses operations.
Motorcycle Business
In 1949, Honda began mass production of motorcycles with the Dream D-Type, followed by other models such as the Benly and the Cub F-Type. By 1957, Honda became the top...
Honda Motor Co., Ltd. (Honda) develops, manufactures, and markets motorcycles, automobiles and power products globally.
Honda’s business segments are the Motorcycle business operations, Automobile business operations, Financial services business operations, and Power products and other businesses operations.
Motorcycle Business
In 1949, Honda began mass production of motorcycles with the Dream D-Type, followed by other models such as the Benly and the Cub F-Type. By 1957, Honda became the top Japanese manufacturer in terms of motorcycle production volume. Honda expanded its business overseas by establishing American Honda Motor Co., Inc. in the United States in 1959. Honda first started overseas production in Belgium in 1963.
Honda produces a wide range of motorcycles, with engine displacement ranging from the 50cc class to the 1,800cc class. Honda’s motorcycle lineup uses internal combustion engine of air- or water-cooled, and in single, two, four or six-cylinder configurations. Honda also has electric vehicles in its lineup. Honda’s motorcycle lineup consists of sports, business and commuter models. Honda also produces a range of off-road vehicles, including all-terrain vehicles (ATVs) and side-by-sides (SxS).
Automobile Business
Honda started Automobile business operations in 1963 with the T360 mini truck and the S500 small sports car models. Honda subsequently launched a series of mass-production models, including the CIVIC in 1972 and the ACCORD in 1976, which established a base for its Automobile business. In 1969, production of the mini vehicles N600 and TN600 began in Taiwan using component parts sets. In 1982, Honda became the first Japanese automaker to begin local automobile production in the United States (with the ACCORD model) and later conducted local development and expanded production activities to include light truck models. In 1986, the Acura Brand was established and an exclusive sales network was launched in the United States.
Honda’s vehicles use gasoline engines of three, four or six-cylinder configurations, gasoline-electric hybrid systems and gasoline-electric plug-in hybrid systems. Honda also offers other alternative fuel-powered vehicles, such as battery electric vehicles, fuel cell electric vehicles, and flexible fuel vehicles.
Honda’s principal automobile products include the following vehicle models:
Passenger cars: ACCORD, CITY, CIVIC, FIT, INTEGRA, and JAZZ.
Light trucks: BREEZE, CR-V, ELEVATE, FREED, HR-V, ODYSSEY, PILOT, VEZEL, WR-V, and ZR-V.
Mini vehicles: N-BOX.
Financial Services Business
The company offers a variety of financial services to its customers and dealers through finance subsidiaries in countries, including Japan, the United States, Canada, the United Kingdom, Germany, Brazil, and Thailand, with the intention of providing sales support for its products. The services of these subsidiaries include retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers.
Power Products and Other Businesses
Honda’s Power products business began in 1953 with the introduction of the model H, its first general purpose engine. Since then, Honda has manufactured a variety of power products, including general purpose engines, generators, lawn mowers, water pumps, brush cutters, and tillers.
In Other businesses, Honda began deliveries of the HondaJet aircraft in December 2015.
Marketing and Distribution
Most of Honda’s products are distributed under the Honda trademarks in Japan and/or in overseas markets.
In the fiscal year ended March 31, 2025, approximately 85% of Honda’s motorcycle units on a group basis were sold in Asia. Approximately 45% of Honda’s automobile units (including sales under the Acura Brand) on a group basis were sold in North America followed by 32% in Asia and 17% in Japan. Approximately 38% of Honda’s power products units on a group basis were sold in Asia followed by 28% in North America and 18% in Europe.
Sales and Service
In Japan, Honda produces and sells motorcycles, automobiles, and power products through its domestic sales subsidiaries and independent retail dealers. In overseas markets, Honda also provides motorcycles, automobiles, and power products through its principal foreign sales subsidiaries, which distribute Honda’s products to local wholesalers and retail dealers.
In the fiscal year ended March 31, 2025, approximately 98% of Honda’s overseas sales were made through its principal foreign sales subsidiaries, which distribute Honda’s products to local wholesalers and retail dealers.
Honda sells spare parts and provides after-sales services through retail dealers directly or via its overseas operations, independent distributors and licensees.
Components and Parts, Raw Materials and Sources of Supply
Honda manufactures the major components and parts used in its products, including engines, frames and transmissions. Other components and parts, such as shock absorbers, electrical equipment and tires, are purchased from numerous suppliers. The principal raw materials used by Honda are steel plate, aluminum, special steels, steel tubes, paints, plastics and zinc, which are purchased from several suppliers. The most important raw material purchased is steel plate, accounting for approximately 47% of Honda’s total purchases of raw materials.
Research and Development
The company’s research and development expenses were ¥1,099.4 billion for the year ended March 31, 2025.
History
Honda Motor Co., Ltd. was founded in 1946. The company was incorporated in 1948 under the Commercial Code of Japan.