Honda Motor Co Ltd - Company Profile

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Honda Motor Co Ltd: Segment Analysis

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Business Description

Honda Motor Co Ltd (Honda) manufactures and markets automobiles, motorcycles, power products, and vehicles for the sea.

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R&D Overview

Honda is actively engaged in research and development initiatives across its various business segments, including motorcycles, automobiles, power products, and next-generation technologies. The company focuses on creating distinctive and internationally competitive products by integrating advanced technologies and optimizing resource allocation. Key initiatives include the development of new motorcycle models with enhanced performance and environmental features, the introduction of hybrid and electric vehicles in the automobile segment, advancements in power products like outboard motors and snow throwers, and pioneering efforts in aircraft and space technologies. Honda is also committed to achieving carbon neutrality and expanding its electric vehicle offerings globally. The R&D units of Honda include Honda R&D Co Ltd and Honda Development and Manufacturing of America LLC These units are responsible for conducting product-related R&D and production technology research, respectively. Honda R&D Co Ltd is positioned as a research and development organization capable of creating compelling products and increasing competitiveness. As of March 31, 2026, Honda owned more than 12,200 patents in Japan and more than 24,900 patents abroad. The company also had applications pending for more than 4,300 patents in Japan and for more than 10,400 patents abroad. In FY2026, the company spent JPY1,540,646 million on R&D, which as a percentage of revenue stood at 7% and grew 40.1% YoY.

Business Segments

Overview

Produces passenger cars, light trucks, and mini vehicles. Vehicle features gasoline engines of three, four, or six-cylinder configurations; diesel engines; gasoline-electric hybrid systems; and gasoline-electric plug-in hybrid systems. Also offers other alternative fuel-powered vehicles such as ethanol, battery-electric, and fuel cell vehicles. Major passenger cars: Accord, Fit/Jazz, Civic, and City; light trucks: Breeze, Odyssey, CR-V, Vezel/HR-V, Pilot, Acura RDX and XR-V; and mini vehicles: N-BOX. In FY2026, the segment incurred a capital expenditure of JPY879031 million, which grew 10.2% YoY.

Performance

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Overview

Produces motorcycles with engine displacement ranging from the 50cc class to the 1800cc class. Products feature internal combustion engines air- or water-cooled, and in single, two, four, or six-cylinder configuration. Offers electric vehicles, sports, business, and commuter models. Produces a range of off-road vehicles, including all-terrain vehicles (ATVs) and side-by-side (SxS). In FY2026, the segment incurred a capital expenditure of JPY135,989 million, which grew 43.6% YoY.

Performance

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Overview

Produces general purpose engines, outboard marine engines, lawn mowers, riding mowers, water pumps, brush cutters, tillers, walking assist devices, snow blowers, robotic mowers, generators, and portable battery inverter power sources. In FY2026, the segment incurred a capital expenditure of JPY23,539 million, which grew 27.5% YoY.

Performance

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Overview

Provides retail lending and leasing services to customers and wholesale financing to dealers and customers. Offers services through subsidiaries in Japan, the US, Canada, the UK, Germany, Brazil and Thailand. In FY2026, the segment incurred a capital expenditure of JPY2,766,150 million, which declined 11.5% YoY.

Performance

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Geographical Segments

Target Markets

Thailand, India, China, Indonesia, and Vietnam.

Performance

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Target Markets

The UK, Germany, France, Belgium, and Italy.

Performance

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Performance

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Target Markets

The US, Canada, and Mexico.

Performance

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Target Markets

Brazil and Australia.

Performance

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