HONDA MOTOR CO LTD (HMC)

Honda Motor Co., Ltd. develops, manufactures and markets motorcycles, automobiles and power products globally. It is a Japanese joint stock corporation incorporated in 1948 as the successor to an enterprise founded in 1946 by Soichiro Honda to make motors for motorized bicycles. In the fiscal year ended March 31, 2026, Honda reported revenue of ¥21,796.6 billion, and its capital expenditures were ¥3,804.7 billion on an accrual basis.

Honda reports four segments. Automobile is the largest at ¥13,863.3 billion, or 64% of revenue, and covers passenger cars, light trucks and mini vehicles, including the ACCORD, CIVIC, CR-V, PILOT, ODYSSEY and N-BOX models and the Acura brand. Its powertrains include gasoline, hybrid, plug-in hybrid, battery electric, fuel cell electric and flexible fuel systems. Motorcycle (¥4,018.8 billion, 18%) offers sports, business and commuter models across a wide range of engine sizes, some electric models, and off-road vehicles such as ATVs and side-by-sides. Financial Services (¥3,529.4 billion, 16%) provides retail lending, leasing and wholesale financing to dealers to support product sales. Power Products and Other businesses (¥384.9 billion, 2%) include general purpose engines, generators, water pumps, lawn mowers, brush cutters, tillers and the HondaJet aircraft, which began deliveries in December 2015.

By customer location, North America is the largest market at ¥12,578.8 billion of revenue, followed by Asia (¥4,094.8 billion), Japan (¥2,536.9 billion), Other Regions (¥1,580.4 billion) and Europe (¥1,005.5 billion). Asia accounts for about 85% of group motorcycle unit sales. About 47% of automobile units are sold in North America, 27% in Asia and 18% in Japan. Financial services operate through subsidiaries in countries including Japan, the United States, Canada, the United Kingdom, Germany, Brazil and Thailand. In Japan, products are sold through domestic sales subsidiaries and independent retail dealers. Overseas, about 98% of sales go through principal foreign sales subsidiaries that supply local wholesalers and retail dealers. Spare parts and after-sales service are provided through retail dealers, independent distributors and licensees.

Honda makes its major components, including engines, frames and transmissions. It buys other parts, such as shock absorbers, electrical equipment and tires, from numerous suppliers. Principal raw materials are steel plate (about 44% of raw material purchases), aluminum, special steels, steel tubes, paints, plastics and zinc. No single supplier accounted for more than 5% of purchases of major components, parts and principal raw materials. Motorcycle and power product sales show some seasonality that is not generally material. Honda is subject to environmental and safety regulations on emissions, fuel economy, recycling and safety in Japan, the United States, Canada, Europe, China and other markets. Its principal executive office is in Minato-ku, Tokyo, Japan.