Company Summary
Honda Motor Co., Ltd. is a leading manufacturer of automobiles and the largest producer of motorcycles in the world. The company is recognized internationally for its wide variety of products, ranging from small general-purpose engines to specialty sports cars, which incorporate its efficient internal combustion engine technologies.
Honda operates through four business segments:
The Automobiles segment (62.9% of total revenue in fiscal 2023) produces passenger cars, minivans, multi-wagons, sport utility vehicles (SUVs) and mini cars.
The Motorcycles segment (17%) produces motorcycles consisting of sports (trial and motocross racing), business and commuter models as well as all-terrain vehicles, personal watercraft and multi-utility vehicles. It produces motorcycles ranging from the 50cc class to the 1800cc class in cylinder displacement.
The Financial Services segment (17.3%) offers various financial services that include retail lending and leasing to customers, as well as other financial services, such as wholesale financing to dealers.
The Life Creation and Other segment (2.8%) manufactures various power products, including solar cell batteries, power tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors (riding lawn mowers).
Honda generates the majority of its revenues in the automobile division from the North American and Japanese markets. Asian countries such as China, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines, Singapore, Taiwan, Thailand and Vietnam remain major contributors to revenues in the motorcycle segment.
In 2022, Honda announced its plans to invest $64 billion in research and development initiatives, including electrification, over the next 10 years, laying out an ambitious target to roll out 30 electric vehicle models globally by 2030. It targets EVs to account for 40% of its sales in North America and China by the decade end, which would further increase to 80% by 2035. For Japan, the company aims EVs to constitute 20% of sales by 2020 and 80% by 2035.