ENTERPRISE ANALYSIS AND DESK RESEARCH

A
DETAILED REPORT
ON
HONDA MOTOR CO., LTD.

ASSITED BY - PROF. PRASAD JOSHI

SUBMITTED BY - TEJAS UTTAM CHAURE
MBA 1 DIV B
ROLL NO.11
 ENTREPRENEUR HISTORY AND BACKGROUNDS

Honda is a Japanese public multinational conglomerate corporation
primarily known as a manufacturer of automobiles, motorcycles, and
power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959,
as well as the world's largest manufacturer of internal combustion
engines measured by volume, producing more than 14 million internal
combustion engines each year. Honda became the second-largest
Japanese automobile manufacturer in 2001.Honda was the eighth largest
automobile manufacturer in the world in 2015.
Honda was the first Japanese automobile manufacturer to release a
dedicated luxury brand, Acura, in 1986. Aside from their core
automobile and motorcycle businesses, Honda also manufactures garden
equipment, marine engines, personal watercraft and power generators,
and other products. Since 1986, Honda has been involved with artificial
intelligence/robotics research and released their ASIMO robot in 2000.
They have also ventured into aerospace with the establishment of GE
Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, which
began production in 2012. Honda has three joint-ventures in China
(Honda China, Dongfeng Honda, and Guangqi Honda).
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in
research and development.Also in 2013, Honda became the first
Japanese automaker to be a net exporter from the United States,
exporting 108,705 Honda and Acura models, while importing only
88,357.

PROFILE OF DIRECTOR’S :-
 Takahiro Hachigo, 59
President, CEO & Representative Director, Honda Motor Co., Ltd.
Mr. Takahiro Hachigo is a President, CEO & Representative Director at Honda
Motor Co., Ltd. He is on the Board of Directors at Honda Motor Co., Ltd. Mr.
Hachigo was previously employed as a Vice President by Honda Motor (China)
Technology Co. Ltd., a Vice President by Honda Motor (China) Investment Co. Ltd.,
a President & Director by Honda R & d Europe UK Ltd., and a Director & Vice
President by Honda Motor Europe Ltd.

Seiji Kuraishi, 60
COO, Representative Director, VP & Head-Strategy, Honda Motor Co., Ltd.
Mr. Seiji Kuraishi is a COO, Representative Director, VP & Head-Strategy at Honda
Motor Co., Ltd. He is on the Board of Directors at Honda Motor Co., Ltd. Mr.
Kuraishi was previously employed as a Director & Executive Vice President by
Honda Motor (China) Technology Co. Ltd., a Chief Operating Officer-China Region
by Dongfeng Honda Automobile Co., Ltd., a Chief Operating Officer by Honda
Motor (China) Investment Co. Ltd., and a General Manager-Product Planning by
Honda Malaysia Sdn.
 Kohei Takeuchi, 58
Senior MD, Head-Finance & Administration, Honda Motor Co., Ltd.
Mr. Kohei Takeuchi is a Senior MD, Head-Finance & Administration at Honda
Motor Co., Ltd. He is on the Board of Directors at Honda Motor Co., Ltd. and
American Honda Finance Corp.

Yoshiyuki Matsumoto, 60
Senior Managing Director, Head-R&D, Honda Motor Co., Ltd.
Mr. Yoshiyuki Matsumoto is a President & Representative Director at Honda R&D
Co., Ltd. and a Senior Managing Director, Head-R&D at Honda Motor Co., Ltd. He
is on the Board of Directors at Honda R&D Co., Ltd. and Honda Motor Co., Ltd. Mr.
Matsumoto was previously employed as an Executive Vice President by Asian
Honda Motor Co. Ltd. and a Non-Executive Director by Honda Siel Power Products
Ltd. He also served on the board at Honda Motor India Pvt Ltd., Honda Cars India
Ltd. and Honda Motorcycle & Scooter India Pvt Ltd.

Akira Murayama
Manager, Honda Motor Co., Ltd.
Akira Murayama is on the board of Honda Atlas Cars (Pakistan) Ltd. and Honda
Bank GmbH and Manager of Honda Motor Co., Ltd.He previously held the position
of General Manager of Asian Honda Motor Co. Ltd.
Kazuhiro Odaka
GM-Personnel & Compliance Officer, Honda Motor Co., Ltd.
Mr. Kazuhiro Odaka is a Vice President at American Honda Motor Co., Inc. and a
GM-Personnel & Compliance Officer at Honda Motor Co., Ltd.
Masayuki Igarashi, 55
Executive Officer, Honda Motor Co., Ltd.
Mr. Masayuki Igarashi is a President, Chief Executive Officer & Director at Asian
Honda Motor Co. Ltd., an Executive Officer at Honda Motor Co., Ltd., a Director &
Vice President at American Honda Motor Co., Inc. and a Director & Vice President
at Honda North America, Inc. He is on the Board of Directors at Asian Honda
Motor Co. Ltd., American Honda Motor Co., Inc. and Honda North America, Inc.

Shinji Aoyama, 55
Executive Officer, GM-Asia & Oceania, Honda Motor Co., Ltd.
Mr. Shinji Aoyama is a Chief Operating Officer & Senior EVP at Honda North
America, Inc., an Executive Officer, GM-Asia & Oceania at Honda Motor Co., Ltd.
and a President & Director at Asian Honda Motor Co. Ltd. He is on the Board of
Directors at Asian Honda Motor Co. Ltd. Mr. Aoyama was previously employed as
a President & Chief Executive Officer by Honda Motorcycle & Scooter India Pvt
Ltd.
Masafumi Suzuki, 54
Director, Honda Motor Co., Ltd.
Mr. Masafumi Suzuki is on the Board of Directors at Honda Motor Co., Ltd. Mr.
Suzuki was previously employed as a Director-Supervisory Board by Honda Bank
GmbH and a Director-Business Administration by Honda Motor Europe Ltd.
Masahiro Yoshida, 61
Director, Honda Motor Co., Ltd.
Mr. Masahiro Yoshida is on the Board of Directors at Honda Motor Co., Ltd

Takanobu Ito, 63
Director, Honda Motor Co., Ltd.
Mr. Takanobu Ito is on the Board of Directors at Honda Motor Co., Ltd.
Mr. Ito was previously employed as President by Honda R&D Co. Ltd.
 Organizational Management
Project- and product-centric organizational management, respecting the ideas
of every associate
A unchanging determination to develop products that bring joy to as many people
as possible
Making real the dreams of people worldwide: Honda R&D values each and every
engineer’s passion. Honda takes their unique ideas, backs them up by pursuing
cutting-edge technologies, and constantly challenges the forefront in driving its
research and development. Research and development is conducted by the
automobile, power products and aircraft engine centers, and as a whole, Honda
R&D’s organizational framework links that research of advanced technologies,
regardless of its field, to product development, to bring joy to as many people as
possible. Honda R&D’s core values in developing products, are unwavering.

Research and Development System

Continually seeking make dreams real. Honda R&D’s mission is to push the limits
of technology, in coordination with Honda.

Providing joy to as many people as possible. Honda R&D’s organization realizes

Honda’s overall corporate philosophy.

Honda R&D began in 1960 with the separation of the research and development
division from Honda. With the goal of realizing Honda’s corporate philosophy of
bringing joy to as many people as possible through its products, Honda R&D was
established as an independent entity. Honda R&D’s corporate culture is imbued
with respect for the individual, emphasizing a research and development system
that enables the talents of each engineer to flourish in the pursuit of our ultimate
objective of bringing originality and innovation to the technologies and products
that it develops.
 Honda Mission, Vision & Values

 Honda Mission Statement

“A dynamic growth oriented company through market leadership, excellence in

quality and service and maximizing export, ensuring attractive returns to equity
holders, rewarding associates according to their ability and performance,
fostering a network of engineers and researchers ensuing unique contribution to
the development of the industry, customer satisfaction and protection of the
environment by producing emission friendly green products as a good corporate
citizen fulfilling its social responsibilities in all respects.”

 Honda Vision Statement

“Market leader in the motorcycle industry, emerging as a global competitive

centre of production and exports.”

 Honda Values

 The Honda Philosophy

 Total Quality Management
 New Honda Circles
Corporate profile and Divisions
The company has assembly plants around the globe. These plants are located in
China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil,
México, New Zealand, Malaysia, Indonesia, India, Philippines, Thailand, Vietnam,
Turkey, Taiwan, Perú and Argentina. As of July 2010, 89 percent of Honda and
Acura vehicles sold in the United States were built in North American plants, up
from 82.2 percent a year earlier. This shields profits from the yen's advance to a
15-year high against the dollar.
Honda's Net Sales and Other Operating Revenue by Geographical Regions in
2007

Total revenue (in millions

Geographic Region
of ¥) American Honda
Motor Company is
Japan 1,681,190 based in Torrance,
California. Honda
Racing
North America 5,980,876 Corporation (HRC) is
Honda's motorcycle
racing division. Honda
Europe 1,236,757 Canada Inc. is
headquartered
in Markham,
Asia 1,283,154
Ontario, it was
originally planned to
Others 905,163 be located
in Richmond Hill,
Ontario, but delays led
them to look elsewhere. Their manufacturing division, Honda of Canada
Manufacturing, is based in Alliston, Ontario. Honda has also created joint
ventures around the world, such as Honda Siel Cars and Hero Honda
Motorcycles in India, Guangzhou Honda and Dongfeng Honda in China, Boon Siew
Honda in Malaysia and Honda Atlas in Pakistan.
Following the Japanese earthquake and tsunami in March 2011 Honda announced
plans to halve production at its UK plants. The decision was made to put staff at
the Swindon plant on a 2-day week until the end of May as the manufacturer
struggled to source supplies from Japan. It's thought around 22,500 cars were
produced during this period.
For the fiscal year 2018, Honda reported earnings of US$9.534 billion, with an
annual revenue of US$138.250 billion, an increase of 6.2% over the previous fiscal
cycle. Honda's shares traded at over $32 per share, and its market capitalization
was valued at US$50.4 billion in October 2018.

Year Revenue Net income Total Assets Employees

in mil. USD$ in mil. USD$ in mil. USD$

200 77,851 4,376 83,853

5

200 89,172 5,373 95,145

6

200 99,784 5,331 108,329

7

200 108,026 5,400 113,540

8

200 100,112 1,370 118,189

9

201 92,655 3,052 125,594

0
 201 107,242 6,762 138,851
1

201 100,941 2,820 149,616

2

201 119,523 4,443 164,988 190,338

3

201 118,425 5,741 156,220 198,561

4

201 121,286 4,636 167,675 204,730

5

201 121,190 2,860 151,303 208,399

6

201 130,193 5,734 176,311 211,915

7

201 138,250 9,534 174,143 215,638

8

Products
1.Automobiles
Honda's automotive manufacturing ambitions can be traced back to 1963, with
the Honda T360, a kei car truck built for the Japanese market.This was followed
by the two-door roadster, the Honda S500 also introduced in 1963. In 1965,
Honda built a two-door commercial delivery van, called the Honda L700. Honda's
first four-door sedan was not the Accord, but the air-cooled, four-cylinder,
gasoline-powered Honda 1300 in 1969. The Civic was a hatchback that gained
wide popularity internationally, but it wasn't the first two-door hatchback built.
That was the Honda N360, another Kei car that was adapted for international sale
as the N600. The Civic, which appeared in 1972 and replaced the N600 also had a
smaller sibling that replaced the air-cooled N360, called the Honda Life that was
water-cooled.
The Honda Life represented Honda's efforts in competing in the kei car segment,
offering sedan, delivery van and small pick-up platforms on a shared chassis.
The Life StepVan had a novel approach that, while not initially a commercial
success, appears to be an influence in vehicles with the front passengers sitting
behind the engine, a large cargo area with a flat roof and a liftgate installed in
back, and utilizing a transversely installed engine with a front-wheel-drive
powertrain.
As Honda entered into automobile manufacturing in the late 1960s, where
Japanese manufacturers such as Toyota and Nissan had been making cars since
before WWII, it appears that Honda instilled a sense of doing things a little
differently than its Japanese competitors. Its mainstay products, like the Accord
and Civic (with the exception of its USA-market 1993–97 Passport which was part
of a vehicle exchange program with Isuzu (part of the Subaru-Isuzu joint
venture)), have always employed front-wheel-drive powertrain implementation,
which is currently a long-held Honda tradition. Honda also installed new
technologies into their products, first as optional equipment, then later standard,
like anti lock brakes, speed sensitive power steering, and multi-port fuel injection
in the early 1980s. This desire to be the first to try new approaches is evident with
the creation of the first Japanese luxury chain Acura, and was also evident with
the all aluminum, mid-engined sports car, the Honda NSX, which also
introduced variable valve timing technology, Honda calls VTEC.
The Civic is a line of compact cars developed and manufactured by Honda. In
North America, the Civic is the second-longest continuously running nameplate
from a Japanese manufacturer; only its perennial rival, the Toyota Corolla,
introduced in 1968, has been in production longer. The Civic, along with the
Accord and Prelude, comprised Honda's vehicles sold in North America until the
1990s, when the model lineup was expanded. Having gone through several
generational changes, the Civic has become larger and more upmarket, and it
currently slots between the Fit and Accord.
Honda produces Civic hybrid, a hybrid electric vehicle that competes with
the Toyota Prius, and also produces the Insight and CR-Z.
In 2008, Honda increased global production to meet demand for small
cars and hybrids in the U.S. and emerging markets. The company shuffled U.S.
production to keep factories busy and boost car output, while building
fewer minivans and sport utility vehicles as light truck sales fell.
Its first entrance into the pickup segment, the light duty Ridgeline, won Truck of
the Year from Motor Trend magazine in 2006. Also in 2006, the redesigned Civic
won Car of the Year from the magazine, giving Honda a rare double win of Motor
Trend honors.
It is reported that Honda plans to increase hybrid sales in Japan to more than 20%
of its total sales in fiscal year 2011, from 14.8% in previous year.
Five of United States Environmental Protection Agency's top ten most fuel-
efficient cars from 1984 to 2010 comes from Honda, more than any other
automakers. The five models are: 2000–2006 Honda Insight (53 mpg-US or
4.4 L/100 km or 64 mpg-imp combined), 1986–1987 Honda Civic Coupe HF
(46 mpg-US or 5.1 L/100 km or 55 mpg-imp combined), 1994–1995 Honda Civic
hatchback VX (43 mpg-US or 5.5 L/100 km or 52 mpg-imp combined), 2006– Honda
Civic Hybrid (42 mpg-US or 5.6 L/100 km or 50 mpg-imp combined), and 2010–
Honda Insight (41 mpg-US or 5.7 L/100 km or 49 mpg-imp combined). The ACEEE has
also rated the Civic GX as the greenest car in America for seven consecutive years.

2.Motorcycles
Honda is the largest motorcycle manufacturer in Japan and has been since it
started production in 1955. At its peak in 1982, Honda manufactured almost three
million motorcycles annually. By 2006 this figure had reduced to around 550,000
but was still higher than its three domestic competitors.
In 2017, India became the largest motorcycle market of Honda. In India, Honda is
leading in the scooters segment, with 59 percent market share.
During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanese motorcycle market and began exporting to the U.S. Working with the
advertising agency Grey Advertising, Honda created an innovative marketing
campaign, using the slogan "You meet the nicest people on a Honda." In contrast
to the prevailing negative stereotypes of motorcyclists in America as tough,
antisocial rebels, this campaign suggested that Honda motorcycles were made for
the everyman. The campaign was hugely successful; the ads ran for three years,
and by the end of 1963 alone, Honda had sold 90,000 motorcycles.
Taking Honda's story as an archetype of the smaller manufacturer entering a new
market already occupied by highly dominant competitors, the story of their
market entry, and their subsequent huge success in the U.S. and around the
world, has been the subject of some academic controversy. Competing
explanations have been advanced to explain Honda's strategy and the reasons for
their success.
The first of these explanations was put forward when, in 1975, Boston Consulting
Group (BCG) was commissioned by the UK government to write a report
explaining why and how the British motorcycle industry had been out-competed
by its Japanese competitors. The report concluded that the Japanese firms,
including Honda, had sought a very high scale of production (they had made a
large number of motorbikes) in order to benefit from economies of
scale and learning curve effects. It blamed the decline of the British motorcycle
industry on the failure of British managers to invest enough in their businesses to
profit from economies of scale and scope.

2004 Honda Super Cub

The second explanation was offered in 1984 by Richard Pascale, who had
interviewed the Honda executives responsible for the firm's entry into the U.S.
market. As opposed to the tightly focused strategy of low cost and high scale that
BCG accredited to Honda, Pascale found that their entry into the U.S. market was
a story of "miscalculation, serendipity, and organizational learning" – in other
words, Honda's success was due to the adaptability and hard work of its staff,
rather than any long term strategy. For example, Honda's initial plan on entering
the US was to compete in large motorcycles, around 300 cc. Honda's motorcycles
in this class suffered performance and reliability problems when ridden the
relatively long distances of the US highways. When the team found that the
scooters they were using to get themselves around their U.S. base of San
Francisco attracted positive interest from consumers that they fell back on selling
the Super Cub instead.
The most recent school of thought on Honda's strategy was put forward by Gary
Hamel and C. K. Prahalad in 1989. Creating the concept of core competencies with
Honda as an example, they argued that Honda's success was due to its focus on
leadership in the technology of internal combustion engines. For example, the
high power-to-weight ratio engines Honda produced for its racing bikes provided
technology and expertise which was transferable into mopeds. Honda's entry into
the U.S. motorcycle market during the 1960s is used as a case study for teaching
introductory strategy at business schools worldwide.
Power Equipment
Production started in 1953 with H-type engine (prior to motorcycle).
Honda power equipment reached record sales in 2007 with 6.4 million units. By
2010 (Fiscal year ended 31 March) this figure had decreased to 4,7 million
units. Cumulative production of power products has exceeded 85 million units (as
of September 2008).
Honda power equipment includes:

 Engine
 Tiller
 Lawn mower
 Robotic lawn mower
 Riding mower
 Trimmer
 Mower
 Blower
 Sprayer
 Hedge trimmer
 Snowthrower
 Generator, welding power supply
 Pumps
 Outboard engine
 Inflatable boat
 Electric 4-wheel Scooter
 Compact Household Cogeneration Unit

4.Engines
Honda engines powered the entire 33-car starting field of the 2010 Indianapolis
500[46] and for the fifth consecutive race, there were no engine-related
retirements during the running of the Memorial Day Classic.
In the 1980s Honda developed the GY6 engine for use in motor scooters.
Although no longer manufactured by Honda it is still commonly used in many
Chinese, Korean and Taiwanese light vehicles.
Honda, despite being known as an engine company, has never built a V8 for
passenger vehicles. In the late 1990s, the company resisted considerable pressure
from its American dealers for a V8 engine (which would have seen use in top-of-
the-line Honda SUVs and Acuras), with American Honda reportedly sending one
dealer a shipment of V8 beverages to silence them. Honda considered starting V8
production in the mid-2000s for larger Acura sedans, a new version of the high
end NSX sports car (which previously used DOHC V6 engines with VTEC to achieve
its high power output) and possible future ventures into the American full-size
truck and SUV segment for both the Acura and Honda brands, but this was
cancelled in late 2008, with Honda citing environmental and worldwide economic
conditions as reasons for the termination of this project.
5.Robots
ASIMO is the part of Honda's Research & Development robotics program. It is the
eleventh in a line of successive builds starting in 1986 with Honda E0 moving
through the ensuing Honda E series and the Honda P series. Weighing 54
kilograms and standing 130 centimeters tall, ASIMO resembles a
small astronaut wearing a backpack, and can walk on two feet in a manner
resembling human locomotion, at up to 6 km/h (3.7 mph). ASIMO is the world's
only humanoid robot able to ascend and descend stairs independently.
[51]
 However, human motions such as climbing stairs are difficult to mimic with a
machine, which ASIMO has demonstrated by taking two plunges off a staircase.
Honda's robot ASIMO (see below) as an R&D project brings together expertise to
create a robot that walks, dances and navigates steps. 2010 marks the year Honda
has developed a machine capable of reading a user's brainwaves to move ASIMO.
The system uses a helmet covered with electroencephalography and near-
infrared spectroscopy sensors that monitor electrical brainwaves and cerebral
blood flow—signals that alter slightly during the human thought process. The user
thinks of one of a limited number of gestures it wants from the robot, which has
been fitted with a Brain Machine Interface.

6.Aircraft
Honda has also pioneered new technology in its HA-420 HondaJet, manufactured
by its subsidiary Honda Aircraft Company, which allows new levels of reduced
drag, increased aerodynamics and fuel efficiency thus reducing operating costs.

7.Mountain Bikes
Honda has also built a downhill racing bicycle known as the Honda RN-01. It is not
available for sale to the public. The bike has a gearbox, which replaces the
standard derailleur found on most bikes.
Honda has hired several people to pilot the bike, among them Greg Minnaar. The
team is known as Team G Cross Honda.

Former products
ATV
Honda also builds all-terrain vehicles (ATV). 420 450r 400ex 300ex 250r
Solar cells
Honda's solar cell subsidiary company Honda Soltec (Headquarters: Kikuchi-gun,
Kumamoto; President and CEO: Akio Kazusa) started sales throughout Japan
of thin-film solar cells for public and industrial use on 24 October 2008, after
selling solar cells for residential use since October 2007. [Honda announced in the
end of October 2013 that Honda Soltec would cease the business operation
except for support for existing customers in Spring 2014 and the subsidiary would
be dissolved.

Automobile
See also: Honda in Formula One

Rubens Barrichello driving for Honda

Honda entered Formula One as a constructor for the first time in the 1964

season at the German Grand Prix with Ronnie Bucknum at the wheel. 1965 saw
the addition of Richie Ginther to the team, who scored Honda's first point at
the Belgian Grand Prix, and Honda's first win at the Mexican Grand Prix. 1967 saw
their next win at the Italian Grand Prix with John Surtees as their driver.
In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. This
racing tragedy, coupled with their commercial difficulties selling automobiles in
the United States, prompted Honda to withdraw from all international
motorsport that year.
After a learning year in 1965, Honda-powered Brabhams dominated the 1966
French Formula Two championship in the hands of Jack Brabham and Denny
Hulme. As there was no European Championship that season, this was the top F2
championship that year. In the early 1980s Honda returned to F2, supplying
engines to Ron Tauranac's Ralt team. Tauranac had designed the Brabham cars
for their earlier involvement. They were again extremely successful. In a related
exercise, John Judd's Engine Developments company produced a turbo "Brabham-
Honda" engine for use in IndyCar racing. It won only one race, in 1988 for Bobby
Rahal at Pocono.
Honda returned to Formula One in 1983, initially with another Formula Two
partner, the Spirit team, before switching abruptly to Williams in 1984. Between
1986 and 1991, Honda won six consecutive Formula One Constructors'
Championships as an engine manufacturer, as well as five consecutive Drivers'
Championships with Nelson Piquet, Ayrton Senna and Alain Prost. Williams-Honda
won the crown in 1986 and 1987. Honda switched allegiance to McLaren in 1988,
and then won the title in 1988, 1989, 1990 and 1991. Honda withdrew from
Formula One at the end of 1992, although the related Mugen company
maintained a presence up to the end of 2000, winning four races
with Ligier and Jordan.
Honda debuted in the CART IndyCar World Series as a works supplier in 1994. The
engines were far from competitive at first, but after development, the company
won six consecutive drivers' championships and four manufacturers'
championships between 1996 and 2001. In 2003, Honda transferred its effort to
the IRL IndyCar Series with Ilmor supporting HPD. In 2004, Honda-powered cars
overwhelmingly dominated the IndyCar Series, winning 14 of 16 IndyCar races,
including the Indianapolis 500, and claimed the IndyCar Series Manufacturers'
Championship, Drivers' Championship and Rookie of the Year titles. From 2006 to
2011, Honda was the lone engine supplier for the IndyCar Series, including the
Indianapolis 500. In the 2006 Indianapolis 500, for the first time in Indianapolis
500 history, the race was run without a single engine problem. Since
2012, HPD has constructed turbocharged V6 engines for its IndyCar effort,
winning four Indianapolis 500's, two manufacturers' championships and two
drivers' championships.
During 1998, Honda considered returning to Formula One with their own team.
The project was aborted after the death of its technical director, Harvey
Postlethwaite. Honda instead came back as an official engine supplier to British
American Racing (BAR), and briefly to Jordan Grand Prix. Together BAR and Honda
achieved 15 podium finishes and second place in the 2004 constructors'
championship. Honda bought a stake in the BAR team in 2004 before buying the
team outright at the end of 2005, becoming a constructor for the first time since
the 1960s. Honda won the 2006 Hungarian Grand Prix with driver Jenson Button.
Honda announced in December 2008, that it would be exiting Formula One with
immediate effect due to the 2008 global economic crisis.
Honda became an official works team in the British Touring Car Championship in
2010.
Honda made an official announcement on 16 May 2013 that it planned to re-
enter into Formula One in 2015 as an engine supplier to McLaren. On 15
September 2017, after a winless campaign spanning three seasons and achieving
a best finish of fifth place, McLaren and Honda announced their split, with the
latter going on to sign a multi-year deal to supply Toro Rosso, the junior team
of Red Bull Racing. After a fairly successful season with Toro Rosso, Honda made a
deal to also supply Red Bull Racing. Max Verstappen scored Honda's first win of
the V6 turbo-hybrid era at the Austrian Grand Prix

Motorcycles
Honda Racing Corporation (HRC) was formed in 1982. The company combines
participation in motorcycle races throughout the world with the development of
high potential racing machines. Its racing activities are an important source for
the creation of leading edge technologies used in the development of Honda
motorcycles. HRC also contributes to the advancement of motorcycle sports
through a range of activities that include sales of production racing motorcycles,
support for satellite teams, and rider education programs.
Soichiro Honda, being a race driver himself, could not stay out of
international motorsport. In 1959, Honda entered five motorcycles into the Isle of
Man TT race, the most prestigious motorcycle race in the world. While always
having powerful engines, it took until 1961 for Honda to tune their chassis well
enough to allow Mike Hailwood to claim their first Grand Prix victories in the 125
and 250 cc classes. Hailwood would later pick up their first Senior TT wins in 1966
and 1967. Honda's race bikes were known for their "sleek & stylish design" and
exotic engine configurations, such as the 5-cylinder, 22,000 rpm, 125 cc bike and
their 6-cylinder 250 cc and 297 cc bikes.
In 1979, Honda returned to Grand Prix motorcycle racing with the monocoque-
framed, four-stroke NR500. The FIM rules limited engines to four cylinders, so the
NR500 had non-circular, 'race-track', cylinders, each with 8 valves and two
connecting rods, in order to provide sufficient valve area to compete with the
dominant two-stroke racers. Unfortunately, it seemed Honda tried to accomplish
too much at one time and the experiment failed. For the 1982 season, Honda
debuted their first two-stroke race bike, the NS500 and in 1983, Honda won their
first 500 cc Grand Prix World Championship with Freddie Spencer. Since then,
Honda has become a dominant marque in motorcycle Grand Prix racing, winning
a plethora of top level titles with riders such as Mick Doohan and Valentino Rossi.
Honda also head the number of wins at the Isle of Man TT having notched up 227
victories in the solo classes and Sidecar TT, including Ian Hutchinson's clean sweep
at the 2010 races.
The outright lap record on the Snaefell Mountain Course was held by Honda, set
at the 2015 TT by John McGuinness at an average speed of 132.701 mph
(213.562 km/h) on a Honda CBR1000RR, bettered the next year by Michael
Dunlop on a BMW S1000RR at 133.962 mph (215.591 km/h).
In the Motocross World Championship, Honda has claimed six world
championships. In the World Enduro Championship, Honda has captured eight
titles, most recently with Stefan Merriman in 2003 and with Mika Ahola from
2007 to 2010. In motorcycle trials, Honda has claimed three world championships
with Belgian rider Eddy Lejeune.

Electric and alternative fuel vehicles

2009 Honda Civic GX hooked up to Phill refueling system

Compressed natural gas

The Honda Civic GX was for a long time the only purpose-built natural gas
vehicle (NGV) commercially available in some parts of the U.S.The Honda Civic GX
first appeared in 1998 as a factory-modified Civic LX that had been designed to
run exclusively on compressed natural gas. The car looks and drives just like a
contemporary Honda Civic LX, but does not run on gasoline. In 2001, the Civic GX
was rated the cleanest-burning internal combustion engine in the world by
the U.S. Environmental Protection Agency (EPA).
First leased to the City of Los Angeles, in 2005, Honda started offering the GX
directly to the public through factory trained dealers certified to service the GX.
Before that, only fleets were eligible to purchase a new Civic GX. In 2006, the Civic
GX was released in New York, making it the second state where the consumer is
able to buy the car.
In June 2015, Honda announced its decision to phase out the commercialization
of natural-gas powered vehicles to focus on the development of a new generation
of electrified vehicles such as hybrids, plug-in electric cars and hydrogen-
powered fuel cell vehicles. Since 2008, Honda has sold about 16,000 natural-gas
vehicles, mainly to taxi and commercial fleets.

Flexible-fuel
Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda
Civic and Honda Fit in late 2006. As other Brazilian flex-fuel vehicles, these models
run on any blend of hydrous ethanol (E100) and E20-E25 gasoline. Initially, and in
order to test the market preferences, the carmaker decided to produce a limited
share of the vehicles with flex-fuel engines, 33 percent of the Civic production and
28 percent of the Fit models. Also, the sale price for the flex-fuel version was
higher than the respective gasoline versions, around US$1,000 premium for the
Civic, and US$650 for the Fit, despite the fact that all other flex-fuel vehicles sold
in Brazil had the same tag price as their gasoline versions. In July 2009, Honda
launched in the Brazilian market its third flexible-fuel car, the Honda City.
During the last two months of 2006, both flex-fuel models sold 2,427 cars against
8,546 gasoline-powered automobiles, jumping to 41,990 flex-fuel cars in 2007,
and reaching 93,361 in 2008. Due to the success of the flex versions, by early 2009
a hundred percent of Honda's automobile production for the Brazilian market is
now flexible-fuel, and only a small percentage of gasoline version is produced in
Brazil for exports.
In March 2009, Honda launched in the Brazilian market the first flex-fuel
motorcycle in the world. Produced by its Brazilian subsidiary Moto Honda da
Amazônia, the CG 150 Titan Mix is sold for around US$2,700.

Hybrid electric

Honda CR-Z, the first sports coupe hybrid to come with a six-speed manual transmission
In late 1999, Honda launched the first commercial hybrid electric car sold in the
U.S. market, the Honda Insight, just one month before the introduction of
the Toyota Prius, and initially sold for US$20,000. The first-generation Insight was
produced from 2000 to 2006 and had a fuel economy of 70 miles per US gallon
(3.4 L/100 km; 84 mpg-imp) for the EPA's highway rating, the most fuel-efficient
mass-produced car at the time. Total global sales for the Insight amounted to only
around 18,000 vehicles. Cumulative global sales reached 100,000 hybrids in 2005
and 200,000 in 2007.
Honda introduced the second-generation Insight in Japan in February 2009, and
released it in other markets through 2009 and in the U.S. market in April 2009. At
$19,800 as a five-door hatchback it will be the least expensive hybrid available in
the U.S.

2010 Honda Insight hybrid electric vehicle (Second generation)

Since 2002, Honda has also been selling the Honda Civic Hybrid (2003 model) in
the U.S. market. It was followed by the Honda Accord Hybrid, offered in model
years 2005 through 2007. Sales of the Honda CR-Z began in Japan in February
2010, becoming Honda's third hybrid electric car in the market. As of
February 2011, Honda was producing around 200,000 hybrids a year in Japan.
Sales of the Fit Hybrid began in Japan in October 2010, at the time, the lowest
price for a gasoline-hybrid electric vehicle sold in the country. The European
version, called Honda Jazz Hybrid, was released in early 2011. During 2011 Honda
launched three hybrid models available only in Japan, the Fit Shuttle
Hybrid, Freed Hybrid and Freed Spike Hybrid.
Honda's cumulative global hybrid sales passed the 1 million unit milestone at the
end of September 2012, 12 years and 11 months after sales of the first generation
Insight began in Japan November 1999. A total of 187,851 hybrids were sold
worldwide in 2013, and 158,696 hybrids during the first six months of 2014. As of
June 2014, Honda has sold more than 1.35 million hybrids worldwide.
Hydrogen fuel cell

Honda FCX Clarity hydrogen fuel cell vehicle

In Takanezawa, Japan, on 16 June 2008, Honda Motors produced the first

assembly-line FCX Clarity, a hybrid hydrogen fuel cell vehicle. More efficient than
a gas-electric hybrid vehicle, the FCX Clarity combines hydrogen and oxygen from
ordinary air to generate electricity for an electric motor. In July 2014 Honda
announced the end of production of the Honda FCX Clarity for the 2015 model.
The vehicle itself does not emit any pollutants and its only by products are heat
and water. The FCX Clarity also has an advantage over gas-electric hybrids in that
it does not use an internal combustion engine to propel itself. Like a gas-electric
hybrid, it uses a lithium ion battery to assist the fuel cell during acceleration and
capture energy through regenerative braking, thus improving fuel efficiency. The
lack of hydrogen filling stations throughout developed countries will keep
production volumes low. Honda will release the vehicle in groups of 150.
California is the only U.S. market with infrastructure for fueling such a vehicle,
though the number of stations is still limited. Building more stations is expensive,
as the California Air Resources Board (CARB) granted $6.8 million for four H2
fueling stations, costing US$1.7 million each.
Honda views hydrogen fuel cell vehicles as the long term replacement of piston
cars, not battery cars.

Plug-in electric vehicles

Honda Fit EV concept unveiled at the 2010 Los Angeles Auto Show.

The all-electric Honda EV Plus was introduced in 1997 as a result of CARB's zero-

emissions vehicle mandate and was available only for leasing in California. The EV
plus was the first battery electric vehicle from a major automaker with non-lead–
acid batteries The EV Plus had an all-electric range of 100 mi (160 km). Around
276 units were sold in the U.S. and production ended in 1999. The all-
electric Honda Fit EV was introduced in 2012 and has a range of 82 mi
(132 km). The all-electric car was launched in the U.S. to retail customers in July
2012 with initial availability limited to California and Oregon. Production is limited
to only 1,100 units over the first three years. A total of 1,007 units have been
leased in the U.S. through September 2014. The Fit EV was released in Japan
through leasing to local government and corporate customers in August 2012.
Availability in the Japanese market is limited to 200 units during its first two years.
In July 2014 Honda announced the end of production of the Fit EV for the 2015
model.
The Honda Accord Plug-in Hybrid was introduced in 2013 and has an all-electric
range of 13 mi (21 km) Sales began in the U.S. in January 2013 and the plug-in
hybrid is available only in California and New York. A total of 835 units have been
sold in the U.S. through September 2014. The Accord PHEV was introduced in
Japan in June 2013 and is available only for leasing, primarily to corporations and
government agencies.

Marketing
Japanese marketing
Honda Clio (Saitama, Japan)

Starting in 1978, Honda in Japan decided to diversify its sales distribution

channels and created Honda Verno, which sold established products with a
higher content of standard equipment and a more sporting nature. The
establishment of Honda Verno coincided with its new sports compact, the Honda
Prelude. Later, the Honda Vigor, Honda Ballade, and Honda Quint were added
to Honda Verno stores. This approach was implemented due to efforts in place by
rival Japanese automakers Toyota and Nissan.

Honda Primo (Osaka)

As sales progressed, Honda created two more sales channels, called Honda Clio in
1984, and Honda Primo in 1985. The Honda Clio chain sold products that were
traditionally associated with Honda dealerships before 1978, like the Honda
Accord, and Honda Primo sold the Honda Civic, kei cars such as the Honda
Today, superminis like the Honda Capa, along with other Honda products, such as
farm equipment, lawn mowers, portable generators, and marine equipment, plus
motorcycles and scooters like the Honda Super Cub. A styling tradition was
established when Honda Primo and Clio began operations in that
all Verno products had the rear license plate installed in the rear bumper,
while Primo and Clio products had the rear license plate installed on the trunk lid
or rear door for minivans.
Honda Verno (2008)
As time progressed and sales began to diminish partly due to the collapse of
the Japanese "bubble economy", "supermini" and "kei" vehicles that were specific
to Honda Primo were "badge engineered" and sold at the other two sales
channels, thereby providing smaller vehicles that sold better at both Honda
Verno and Honda Clio locations. As of March 2006, the three sales chains were
discontinued, with the establishment of Honda Cars dealerships. While the
network was disbanded, some Japanese Honda dealerships still use the network
names, offering all Japanese market Honda cars at all locations.

Honda Wing motorcycle dealership (Japan)

Honda sells genuine accessories through a separate retail chain called Honda
Access for both their motorcycle, scooter and automobile products. In
cooperation with corporate group partner Pioneer, Honda sells an aftermarket
line of audio and in-car navigation equipment that can be installed in any vehicle
under the brand name Gathers, which is available at Honda Access locations as
well as Japanese auto parts retailers, such as Autobacs. Buyers of used vehicles
are directed to a specific Honda retail chain that sells only used vehicles
called Honda Auto Terrace.
In the spring of 2012, Honda in Japan introduced Honda Cars Small
Store (Japanese) which is devoted to compact cars like the Honda Fit,
and kei vehicles like the Honda N-One and Honda S660 roadster.
International marketing

A Honda dealership in Ontario, Canada

A Honda Dealership in Dreghorn, Scotland

In 2003, Honda released its Cog advertisement in the UK and on the Internet. To

make the ad, the engineers at Honda constructed a Rube Goldberg Machine made
entirely out of car parts from a Honda Accord Touring. To the chagrin of the
engineers at Honda, all the parts were taken from two of only six hand-
assembled pre-production models of the Accord. The advertisement depicted a
single cog which sets off a chain of events that ends with the Honda Accord
moving and Garrison Keillor speaking the tagline, "Isn't it nice when things just...
work?" It took 606 takes to get it perfect.
In 2004, they produced the Grrr advert, usually immediately followed by a
shortened version of the 2005 Impossible Dream advert. In December 2005,
Honda released The Impossible Dream a two-minute panoramic advertisement
filmed in New Zealand, Japan and Argentina which illustrates the founder's dream
to build performance vehicles. While singing the song "Impossible Dream", a man
reaches for his racing helmet, leaves his trailer on a minibike, then rides a
succession of vintage Honda vehicles: a motorcycle, then a car, then a powerboat,
then goes over a waterfall only to reappear piloting a hot air balloon, with
Garrison Keillor saying "I couldn't have put it better myself" as the song ends. The
song is from the 1960s musical Man of La Mancha, sung by Andy Williams.
In 2006, Honda released its Choir advertisement, for the UK and the internet. This
had a 60-person choir who sang the car noises as film of the Honda Civic are
shown.
In the mid to late 2000s in the United States, during model close-out sales for the
current year before the start of the new model year, Honda's advertising has had
an animated character known simply as Mr. Opportunity, voiced by Rob Paulsen.
The casual looking man talked about various deals offered by Honda and ended
with the phrase "I'm Mr. Opportunity, and I'm knockin'", followed by him
"knocking" on the television screen or "thumping" the speaker at the end of radio
ads. In addition, commercials for Honda's international hatchback, the Jazz, are
parodies of well-known pop culture images such as Tetris and Thomas The Tank
Engine.
In late 2006, Honda released an ad with ASIMO exploring a museum, looking at
the exhibits with almost childlike wonderment (spreading out its arms in the
aerospace exhibit, waving hello to an astronaut suit that resembles him, etc.),
while Garrison Keillor ruminates on progress. It concludes with the tagline: "More
forwards please". Honda also sponsored ITV's coverage of Formula One in the UK
for 2007. However they had announced that they would not continue in 2008 due
to the sponsorship price requested by ITV being too high.
In May 2007, focuses on their strengths in racing and the use of the Red H badge
– a symbol of what is termed as "Hondamentalism". The campaign highlights the
lengths that Honda engineers go to in order to get the most out of an engine,
whether it is for bikes, cars, powerboats – even lawnmowers. Honda released
its Hondamentalism campaign. In the TV spot, Garrison Keillor says, "An engineer
once said to build something great is like swimming in honey", while Honda
engineers in white suits walk and run towards a great light, battling strong winds
and flying debris, holding on to anything that will keep them from being blown
away. Finally one of the engineers walks towards a red light, his hand
outstretched. A web address is shown for the Hondamentalism website. The
digital campaign aims to show how visitors to the site share many of the
Hondamentalist characteristics.
At the beginning of 2008, Honda released – the Problem Playground. The advert
outlines Honda's environmental responsibility, demonstrating a hybrid engine,
more efficient solar panels and the FCX Clarity, a hydrogen-powered car. The 90-
second advert has large-scale puzzles, involving Rubik's Cubes, large shapes and a
3-dimensional puzzle. On 29 May 2008, Honda, in partnership with Channel 4,
broadcast a live advertisement. It showed skydivers jumping from an aeroplane
over Spain and forming the letters H, O, N, D and A in mid-air. This live
advertisement is generally agreed to be the first of its kind on British television.
The advert lasted three minutes.
In 2009, American Honda released the Dream the Impossible documentary series,
a collection of 5- to 8-minute web vignettes that focus on the core philosophies of
Honda. Current short films include Failure: The Secret to Success, Kick Out the
Ladder and Mobility 2088. They have Honda employees as well as Danica
Patrick, Christopher Guest, Ben Bova, Chee Pearlman, Joe Johnston and Orson
Scott Card. The film series plays at dreams.honda.com. In the UK, national
television ads feature voice-overs from American radio host Garrison Keillor,
while in the US the voice of Honda commercials is actor and director Fred Savage.
In the North American market, Honda starts all of their commercials with a two-
tone jingle since the mid-2010s.

Sports
The late F1 driver Ayrton Senna stated that Honda probably played the most
significant role in his three world championships. He had immense respect for
founder, Soichiro Honda, and had a good relationship with Nobuhiko Kawamoto,
the chairman of Honda at that time. Senna once called Honda "the greatest
company in the world".
As part of its marketing campaign, Honda is an official partner and sponsor of
the National Hockey League, the Anaheim Ducks of the NHL, and the arena
named after it: Honda Center. Honda also sponsors The Honda Classic golf
tournament and is a sponsor of Major League Soccer. The "Honda Player of the
Year" award is presented in United States soccer. The "Honda Sports Award" is
given to the best female athlete in each of twelve college sports in the United
States. One of the twelve Honda Sports Award winners is chosen to receive
the Honda-Broderick Cup, as "Collegiate Woman Athlete of the Year."
Honda sponsored La Liga club Valencia CF starting from 2014–15 season.
Honda has been a presenting sponsor of the Los Angeles Marathon since 2010 in
a three-year sponsorship deal, with winners of the LA Marathon receiving a
free Honda Accord. Since 1989, the Honda Campus All-Star Challenge has been
a quizbowl tournament for Historically black colleges and universitie

US sales
Calendar year Total US sales

1992 768,845

1993 716,546

1994 788,230

1995 794,579

1996 843,928

1997 940,386

1998 1,009,600

1999 1,076,893

2000 1,158,860
2001 1,207,639

2002 1,247,834

2003 1,349,847

2004 1,394,398

2005 1,462,472

2006 1,509,358

2007 1,551,542

2008 1,284,261

2009 1,150,784

2010 1,230,480

2011 1,147,000

2012 1,422,000

2013 1,525,312

2014 1,540,872

2015 1,586,551
2016 1,637,942

2017 1,641,429

Production numbers

Calendar
Global production
year

2009 3,012,000

2010 3,643,000

2011 2,909,000

2012 4,110,000

2013 4,112,000

2014 4,513,769

2015 4,543,838
2016 4,999,266]

2017 5,236,842

2018 5,357,013

2010 Chinese labour strike

2010 Chinese labor strike happened in Guangqi Honda, Dongfeng Honda.

Success story
Honda Motor CO.,Ltd
Soichiro Honda, a Japanese engineer, industrialist, and founder of the automobile
giant Honda Motor Co., Ltd, was born to a talented and honest blacksmith, Gihei
and Mika, an accomplished weaver. He spent his early childhood assisting his
father with his bicycle repair business. From the very early years of his life, Honda
showed tremendous curiosity and dexterity about machines. After completing
school, at the age 15, Honda began his career in Arto Shokai in Tokyo as an
apprentice auto repairman. In 1928, after returning home he opened a branch
shop for the firm in Hamamatsu, Japan. In 1940s, he manufactured a small engine
that could be attached to a bicycle to create a motorbike and his attempt became
successful. His first success encouraged him to jump into the competitive
marketplace of car and his precedent success assisted him to go ahead and
receive success.

In 1972, Honda entered the US car market with its new model Honda Civic and it
was an instant success. In less than 5 years, he sold 375,000 Civic in the US
market. Civic continued to be Honda’s bestselling car selling a total of 18 million
units as of now. In coming years, Honda launched several successful models and
reached all the continents in the world. In the late 1970s while Toyota and Nissan
could manage to sell one-third of their cars to the United States, Honda sold half
of his cars in that market. In 1988, Honda became the first Japanese car-maker to
be inducted into the Automobile Hall of Fame.

Honda’s humble beginning, persistence and determination made him one of the
most powerful and influential businessmen of twentieth century. His story is
known to be the most inspirational story that teaches us how to defeat stumbling
blocks and win.

 Awards-

1.Honda Wins ‘Greenest Vehicles’ and ‘Greener Choices’ for 2019.

The American Council for an Energy-Efficient Economy included two Honda
vehicles on the “Greenest Vehicles of 2019” list1.

 Honda Clarity
 Honda Civic

2.Five Honda Models Earn 2019 Kelley Blue Book Best Resale Value Awards2

The 2019 Kelley Blue Book Best Resale Value Awards honored five Honda
vehicles2, including Civic, which maintains an unbroken winning streak in the
Compact Car category since 2015.

 2019 Honda Insight: Hybrid Car

 2019 Honda Civic: Compact Car
 2019 Honda HR-V: Subcompact SUV/Crossover
 2019 Honda Odyssey: Minivan
 2019 Honda Ridgeline: Best Resale Value
3. Honda Earns Multiple Kelley Blue Book Brand Awards10

 Best Overall Brand (2018)

 Most Refined Brand (2018)
 5-Year Cost to Own Award: Honda Accord

4.Honda Honored by National Association of Minority Automobile Dealers and IHS

Markit4

The National Association of Minority Automobile Dealers (NAMAD) honored

Honda with two Diversity Volume Leadership Awards4.

 2018 Civic: Top Ethnic Vehicle

  2018 Pilot: Volume Growth Leader

5.Honda Tops Car and Driver Editor’s Choice Awards11

 Car and Driver Editors Choice: Compact – Honda CR-V

 Car and Driver Editors Choice: Hybrids and Electric Vehicles – Honda
 Car and Driver Editor’s Choice: Minivan – Honda Odyssey

6.Five Honda Models Earn 2019 Kelley Blue Book Best Resale Value Awards2

The 2019 Kelley Blue Book Best Resale Value Awards honored five Honda
vehicles2, including Civic, which maintains an unbroken winning streak in the
Compact Car category since 2015.

 2019 Honda Insight: Hybrid Car

 2019 Honda Civic: Compact Car
 2019 Honda HR-V: Subcompact SUV/Crossover
  2019 Honda Odyssey: Minivan
 2019 Honda Ridgeline: Best Resale Value

7.2018 North American Car of the Year

2018 Accord Sedan

The all-new Accord has been named 2018 North American Car of the Year. Packed
with a host of advanced technologies, a spacious and premium interior,
turbocharged engine and Honda Sensing® standard, it's the most impressive
Honda yet.

8.2018 Motor Trend SUV of the Year®

2018 CR-V
The 2018 CR-V has been named Motor Trend's SUV of the Year ® thanks to
impressive cargo space, efficient fuel economy and Honda Sensing® safety and
driver-assistive technology standard on EX and higher models.
Financial Annual Report 2018-19
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FOURTH QUARTER AND
THE FISCAL YEAR ENDED MARCH 31, 2019

Tokyo, May 8, 2019--- Honda Motor Co., Ltd. today announced its consolidated
financial results for the fiscal fourth quarter and the fiscal year ended March 31,
2019.
Fourth Quarter Results
Honda’s consolidated sales revenue for the fiscal fourth quarter ended March 31,
2019 increased by 3.4%, to JPY 4,049.1 billion from the same period last year, due
mainly to increased sales revenue at automobile and financial services business
operations. Operating profit for the quarter decreased by 66.6%, to JPY 42.3
billion from the same period last year, due mainly to the impact to Europe related
to changes of the global automobile production network and capability as well as
negative foreign currency effects, which was partially offset by continuing cost
reduction. Profit before income taxes decreased by 41.7%, to JPY 111.1 billion
from the same period last year. Loss for the period attributable to owners of the
parent for the quarter totaled JPY 13.0 billion, a decrease of JPY 120.7 billion from
the same period last year, due mainly to the increased Income tax expense.
Loss per share attributable to owners of the parent for the quarter amounted to
JPY 7.40, a decrease of JPY 67.99 from the corresponding period last year. One
Honda American Depository Share represents one common share.
Fiscal Year Results
Honda's consolidated sales revenue for the fiscal year ended March 31, 2019,
increased by 3.4%, to JPY 15,888.6 billion from the fiscal year ended March 31,
2018, due mainly to increased sales revenue in all business operations. Operating
profit decreased by 12.9%, to JPY 726.3 billion from the previous fiscal year, due
mainly to the impact to Europe related to changes of the global automobile
production network and capability as well as negative foreign currency effects,
which was partially offset by continuing cost reduction and the loss related to the
settlement of multidistrict class action litigation in the previous fiscal year. Profit
before income taxes decreased by 12.2%, to JPY 979.3 billion from the previous
fiscal year. Profit for the year attributable to owners of the parent decreased by
42.4%, to JPY 610.3 billion from the previous fiscal year, due mainly to the
impacts of the enactment of the Tax Cuts and Jobs Act in the United States in the
previous fiscal year.
Earnings per share attributable to owners of the parent for the year amounted to
JPY 345.99, a decrease of JPY 244.80 from the previous fiscal year.
Consolidated Statements of Financial Position for the Fiscal
Year Ended March 31, 2019
Total assets increased by JPY 1,069.9 billion, to JPY 20,419.1 billion from March
31, 2018, mainly due to increased Receivables from financial services and Cash
and cash equivalents as well as foreign currency translation effects. Total liabilities
increased by JPY 738.2 billion, to JPY 11,853.3 billion from March 31, 2018, mainly
due to increased Financial liabilities and foreign currency translation effects. Total
equity increased by JPY 331.6 billion, to JPY 8,565.7 billion from March 31, 2018
due mainly to an increase in Retained earnings, despite a decrease attributable to
acquisition of the Company's own shares.
Consolidated Statements of Cash Flows for the Fiscal Year
Ended March 31, 2019
Consolidated cash and cash equivalents on March 31, 2019 increased by JPY 237.6
billion from March 31, 2018, to JPY 2,494.1 billion. The reasons for the increases
or decreases for each cash flow activity, when compared with the
previous fiscal year, are as follows:
Net cash provided by operating activities amounted to JPY 775.9 billion of cash
inflows. Cash inflows from operating activities decreased by JPY 211.6 billion
compared with the previous fiscal year, due mainly to an increase in payments for
parts and raw materials, which was partially offset by an increase in cash received
from customers.
Net cash used in investing activities amounted to JPY 577.5 billion of cash
outflows. Cash outflows from investing activities decreased by JPY 37.5 billion
compared with the previous fiscal year, due mainly to an increase in proceeds
from sales and redemptions of other financial assets.
Net cash provided by financing activities amounted to JPY 22.9 billion of cash
inflows. Cash inflows from financing activities increased by JPY 197.2 billion
compared with the previous fiscal year, due mainly to an increase in proceeds
from financing liabilities, which was partially offset by an increase in repayments
of financing liabilities.
Forecasts for the Fiscal Year Ending March 31, 2020
In regard to the forecasts of the financial results for the fiscal year ending March
31, 2020, Honda projects
consolidated results to be as shown below:

Fiscal year ending March 31, 2020. Yen (billions). Changes from FY2019
Sales revenue 15,700.0 -1.2%
Operating profit 770.0 +6.0%
Profit before income taxes 995.0 +1.6%
Profit for the year 730.0 +7.9%
Profit for the year attributable to665.0 +9.0%
owners of the parent
Yen
Earnings per share attributable to377.94
owners of the parent Basic and diluted
Note: The forecasts are based on the assumption that the average exchange rates
for the Japanese yen to the U.S. dollar will be JPY 110 for the full year ending
March 31, 2020.
The reasons for the increases or decreases in the forecasts of the operating profit,
and profit before income taxes for the fiscal year ending March 31, 2020 from the
previous year are as follows.
Yen (billions)
Revenue, model mix, etc. -103.4
Cost reduction, the effect of raw material cost fluctuations, etc. +118.0
SG&A expenses. +28.0
R&D expenses. -7.0
Currency effect -50.0
The impact to Europe related to changes of the global+58.0
automobile production network and capability*
⚫ Operating profit compared with fiscal year ended March 31, 2019+43.6
Share of profit of investments accounted for using the equity method. -8.8
Finance income and finance costs. -19.1
Profit before income taxes compared with fiscal+15.6
year ended March 31, 2019
*The impact to Europe related to changes of the global automobile production
network and capability in FY2019 was JPY 68.0 billion and the forecast for the
FY2020 is JPY 10.0 billion.
Dividend per Share of Common Stock
Fiscal fourth quarter dividend is JPY 28 per share of common stock. The total
annual dividend per share of common stock for the fiscal year ending March 31,
2019, is JPY 111 per share.The Company expects to distribute quarterly cash
dividends of JPY 28 per share for each quarter for the fiscal yearending March 31,
2020. As a result, total cash dividends for the fiscal year ending March 31, 2020
are expected to be JPY 112 per share.
This announcement contains "forward-looking statements" as defined in Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Such statements are based on management’s
assumptions and beliefs taking into account information currently available to it.
Therefore, please be advised that the actual results of the Company could differ
materially from those described in these forward-looking statements as a result of
numerous factors, including general economic conditions in the principal markets
of the Company, its consolidated subsidiaries and its affiliates accounted for by
the equity-method, and fluctuation of foreign exchange rates, as well as other
factors detailed from time to time. The various factors for increases and
decreases in profit have been classified in accordance with a method that Honda
considers reasonable.
Basic Rationale for Selection of Accounting Standards
The Company adopted IFRS for the Company’s consolidated financial statements
from the year ended March 31, 2015 which have been included in the annual
securities report (to be submitted to the Financial Services Agency of Japan) and
Form 20-F (to be submitted to the U.S. Securities and Exchange Commission),
aiming at improving comparability of financial information across international
capital markets as well as standardization of financial information and enhancing
efficiency of financial reporting of the Company and its consolidated subsidiaries.
[1] Consolidated Statements of Financial Position
Yen (millions)
Mar. 31, 2018 Mar. 31, 2019
Assets
Current assets:
Cash and cash equivalents 2,256,4882,494,121
Trade receivables 800,463 793,245
Receivables from financial services 1,840,699 1,951,633
Other financial assets 213,177 163,274
Inventories 1,523,455 1,586,787
Other current assets 291,006 358,234
Total current assets 6,925,288 7,347,294
Non-current assets:
Investments accounted for using the equity method. 679,517 713,039
Receivables from financial services 3,117,364 3,453,617
Other financial assets 436,555 417,149
Equipment on operating leases 4,088,133 4,448,849
Property, plant and equipment 3,062,4332,981,840
Intangible assets 741,514 744,368
Deferred tax assets 129,338 150,318
Other non-current assets 169,022 162,648
Total non-current assets 12,423,87613,071,828
Total assets 19,349,16420,419,122

Liabilities and Equity

Current liabilities:
Trade payables. 1,224,627 1,184,882
Financing liabilities 2,917,261 3,188,782
Accrued expenses 404,719 476,300
Other financial liabilities 115,405 132,910
Income taxes payable 53,595 49,726
Provisions 305,994 348,763
Other current liabilities 602,498 599,761
Total current liabilities 5,624,099 5,981,124
Non-current liabilities:
Financing liabilities 3,881,749 4,142,338
Other financial liabilities 60,005 63,689
Retirement benefit liabilities 404,401 398,803
Provisions 220,625 220,745
Deferred tax liabilities 629,722 727,411
Other non-current liabilities 294,468 319,222
Total non-current liabilities 5,490,970 5,872,208
Total liabilities 11,115,069 11,853,332
Equity:
Common stock 86,067 86,067
Capital surplus 171,118 171,460
Treasury stock 113,271177,827
Retained earnings 7,611,332 7,973,637
Other components of equity 178,292 214,383
Equity attributable to owners of the parent 7,933,538 8,267,720
Non-controlling interests 300,557 298,070
Total equity 8,234,095 8,565,790
Total liabilities and equity 19,349,164 20,419,122

[2] Consolidated Statements of Income and Consolidated Statements of

Comprehensive Income
Consolidated Statements of Income
For the three months ended March 31, 2018 and 2019
Yen (millions)
Three monthsThree months
Ended Mar. 31, 2018Ended Mar. 31, 2019
Sales revenue 3,914,7284,049,117
Operating costs and expenses:
Cost of sales (3,073,933) (3,255,441)
Selling, general and administrative (494,956) (519,892)
Research and development (219,013) (231,419)
Total operating costs and expenses (3,787,902) (4,006,752)
Operating profit (loss) 126,826 42,365
Share of profit of investments accounted
for using the equity method 57,920 59,196
Finance income and finance costs:
Interest income 10,997 12,446
Interest expense (3,677) (3,152)
Other, net (1,618) 269
Total finance income and finance costs 5,702 9,563
Profit (loss) before income taxes 190,448 111,124
Income tax expense (68,730) (115,653)
Profit (loss) for the period 121,718 (4,529)
Profit (loss) for the period attributable to:
Owners of the parent 107,745 (13,023)
Non-controlling interests 13,973 8,494
Yen
Earnings (loss) per share attributable60.59 (7.40). to owners of the parentBasic
and diluted
⚫Other
Other
1. Loss related to airbag inflators
Honda has been conducting market-based measures in relation to airbag inflators.
Honda recognizes a provision for specific warranty costs when it is probable that
an outflow of resources embodying economic benefits will berequired to settle
the obligation, and a reliable estimate can be made of the amount of the
obligation. There is a possibility that Honda will need to recognize additional
provisions when new evidence related to the product recalls arise, however, it is
not possible for Honda to reasonably estimate the amount and timing of potential
future losses as of the date of this report.In the United States and Canada, various
class action lawsuits and civil lawsuits related to the above mentioned market-
based measures were filed against Honda. The plaintiffs claimed for properly
functioning airbag inflators, compensation of economic losses including incurred
costs and the decline in the value of vehicles, as well as punitive damages.Most of
the class action lawsuits in the United States were transferred to the United
States District Court for the Southern District of Florida and consolidated into a
multidistrict class action litigation. For the year ended March 31, 2018, Honda has
reached a settlement with the plaintiffs of the multidistrict class action litigation
in the United States. Honda recognized the settlement of JPY 53,739 million as
selling, general and administrative expenses, which includes funds contributed to
enhance airbag inflator recall activities. The final approval of the settlement from
court was completed as July 31, 2018 (U.S. local time).For the class action lawsuits
and civil lawsuits other that the above, Honda did not recognize a provision for
loss contingencies because the conditions for a provision have not been met as of
the date of this report. Therefore, it is not possible for Honda to reasonably
estimate the amount and timing of potential future losses as of the date of this
report because there are some uncertainties, such as the period when these
lawsuits will be concluded.
2. Reversal of impairment loss on investments accounted for using the equity
method
For the fiscal year ended March 31, 2018, the Company recognized reversal of
impairment losses of JPY 15,782 million, which had been previously recognized,
on certain investments accounted for using the equity method mainly due to the
recovery of quoted market values. The reversal of impairment losses is included in
share of profit of investments accounted for using the equity method in the
consolidated statement of income. For the fiscal year ended March 31, 2019, the
Company did not recognize any significant reversal of impairment losses.

3. Impacts of the Enactment of the U.S. Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017. Due to
the Act, the federal corporate income tax rate in the U.S. applicable to the
Company’s U.S. businesses was reduced from 35 percent to a blended corporate
rate of 31.55 percent for the last fiscal year ending March 31, 2018 and to 21
percent from the fiscal year commencing on April 1, 2018. Based on the reduction
of the federal corporate income tax rate, the Company reevaluated deferred tax
assets and liabilities in its U.S. consolidated subsidiaries. As a result, the Company
had recognized impacts of the enactment of the Tax Cuts and Jobs Act, including a
decrease in income tax expenses of JPY 346,129 million, in the fiscal year ended
March 31, 2018.
4. Impact to Europe related to changes of the global automobile production
network and capabilityIn February 2019, the Company announced making
changes throughout the global automobile production network based on the
direction to "optimize production allocation andproduction capacity on a global
basis". As a part of the changes, the Company announced mainly to begin
consultation with associates in direction toward discontinuing
automobileproduction at its certain subsidiaries in Europe in 2021. The Company
and its certain subsidiaries recognized JPY 68,092 million of the loss including the
impairment loss of property, plant and equipment, employee benefits and other
expense. Of the total loss and expense, JPY 56,590 million is included in cost of
sales and JPY 11,502 million is included in selling, general and administrative in
the consolidated statements of income for the year ended March 31, 2019.

GOVERNANCE
Basic Apporch
Honda strives to enhance corporate governance as one of the most important
tasks for its management, based on the Company’s basic principle, in order to
strengthen the trust of its shareholders/investors, customers and society;
encourage timely, decisive and risk-considered decision-making; seek sustainable
growth and the enhancement of corporate value over the mid- to long-term; and
become “a company that society wants to exist.”Honda has adopted a company
with an Audit and Supervisory Committee system with the aim of reinforcing the
supervisory function of the Board of Directors and ensuring prompt decision-
making. Under the system, the Company operates “the Audit and Supervisory
Committee”, which consists of Directors, to delegate the authority to Directors
from the Board of Directors and accelerate the separation of the supervisory
function and business execuion function.Honda is making efforts to appropriately
disclose corporate informatio
Corporate Governance
Executive Decision-Making Process
Honda has adopted a company with Audit and Supervisory Committee system in
order to further delegate the decision-making authority of executing important
business matters from the Board of Directors to the Directors in accordance with
the provisions of the Company’s Articles of Incorporation and resolutions
approved by the Board. The system enables quick decision-making and prompt
business execution while advancing to separate management supervision and
business execution so that the Board’s function is further concentrated to the
overseeing of business execution.The board has established criteria for
deliberation and delegated some of its authority to the Executive Council, which
in turn delegates some of its authority to the Regional Operating Boards.The
Executive Council conducts preliminary deliberation on items such as that will be
decided by the Board of Directors, and, within the limits of authority delegated to
it by the Board of Directors, deliberates on important management matters.
Regional Operating Boards deliberate on important management Council.
Board of Directors
The Board of Directors is comprised of eight inside directors and five outside
directors.In order to respond to the mandate of the shareholders to achieve
sustainable growth and enhance the corporate value of the Company over the
medium to long term, the duties of the Board of Directors include making
decisions concerning key Company matters such as its basic management policies
and monitoring of operations by Directors. In addition, the Board of Directors
discusses and makes decisions concerning matters specified in the regulations of
the Board of Directors, as well as matters set forth in the articles of incorporation
and applicable laws. All other matters are delegated to the Representative
Directors or the Executive Directors.In order to fulfill the above roles, the
Company focuses on considering thebalance in the diverse knowledge and
experience of the Board of Directors as a whole. Accordingly, the Company
appoints as its Directors persons of superior character and insight who have high
expertise and abundant experience. Gender, nationality and other attributes are
of no consequence.
Evaluation of Effectiveness of the Board of Directors
For each fiscal year, the Company’s Board of Directors carries out an evaluation of
the Board as a whole for the purpose of checking the current state of its
operational capabilities, subsequently, to enhance effectiveness.As same as the
previous fiscal year, a self-evaluation was conducted by the Company for 2018.
Based on the results of a questionnaire and interviews conducted with the
Directors, the self-evaluation was deliberated and resolved at the Board of
Directors.The self-evaluation questionnaire was prepared under the supervision
of outside attorneys. The interviews and the compilation of the results were
carried out by outside attorneys as well.The Board of Directors shared the view
that “effectiveness of the Board is ensured appropriately,” through considering
measures which had been taken. Such matters include revision of the deliberation
standard and enhancing provision of useful information to Outside Directors.
Further, they also shared the understanding of the needs to have more through
discussions over the entire management policy of the Company to further
enhance monitoring capabilities of the Board of Directors.The Company will
further enhance monitoring capabilities of the Board of Directors to raise
effectiveness, by taking measures such as engaging further discussions over the
management policy and the business challenges as well as enhancing provision of
sufficient information to Directors for the sake of such discussions.
Outside Directors
Honda appoints Outside Directors who have abundant experience and deep
insight, and who are capable of overseeing the entire business management of
the Company from an objective, highly sophisticated and broader viewpoint
based on the standpoint independent from the Company. In selecting Outside
Directors, the Company seeks to identify persons who have a high degree of
independence. The five Outside Directors currently in office satisfy Criteria for
Independence of Outside Directors and their interests are not in conflict with
those of the Company nor the shareholders. The five Outside Directors are
specified as Independent Directors as prescribed in a provision of the Tokyo Stock
Exchange (TSE); the names of those persons have been submitted to the
TSE.Please refer to “Honda Corporate Governance Basic Policies” for Honda’s
Independence Criteria for Outside Directors. (Please refer to the link below.)
Support Systems for Outside Directors
Honda provides necessary support to Outside Directors through the Secretarial
Division or the Audit and Supervisory Committee’s Division in a timely
manner.Materials on the Board of Directors’ agenda are distributed and explained
in advance for the Outside Directors, and the information helpful for them to
supervise the Company’s business is continuously provided, including when they
assume their respective positions.

Business Execution Management (Organizational Management)

In order to facilitate quick and appropriate management decisions at the regional
and working levels, Honda appoints Operating Officers who have been delegated
the business execution authority from the Representative Director or the
Executive Director to play the roles in their respective fields of Regional, Business
and Functional Operations, R&D subsidiaries and other major organizational units.
Audit Organization
The Audit and Supervisory Committee comprises five members who are also
Directors of the Company (including three Outside Directors). In order to respond
to the entrustment of the shareholders, the Audit and Supervisory Committee
shall conduct audits of the Directors and execute the duties of the committee
prescribed by laws and regulations with the aim of ensuring sound and
sustainable growth of the Company. Each Director serving as an Audit and
Supervisory Committee Member audits the execution of duties by Directors in
accordance with the auditing and supervisory criteria for the Audit and
Supervisory Committee, auditing policies and division of duties, etc., as
determined by the Audit and Supervisory Committee. The audit is carried out
through attendance at important meetings, examination of status of
management/company assets and other activities.To provide timely and accurate
reports to the Audit and Supervisory Committee, Standards for Audit and
Supervisory Committee Reports are being established. Based on these standards,
reports are made periodically to the Audit and Supervisory Committee on the
status of the business operations of the Company and its subsidiaries, the status
of implementation and operation of internal control systems, and other matters.
Also, reporting is required whenever there is an item that has a major impact on
the Company. Candidates of Directors for Audit and Supervisory Committee
Members are selected by a resolution of the Board of Directors with the approval
of the Audit and Supervisory Committee.In addition to the above, the Audit
Division, which was organized to directly report to the President and CEO,
conducts internal audits of each department of the Company. It also provides
supervision and guidance to internal audit departments in major subsidiaries, as
well as directly auditing subsidiaries when necessary.
Training for Officers
When a new officer takes a position, Honda provides him/her with a training
program including outside training that focuses on corporate governance as the
central theme, and including code of conduct, prevention of bribery and
prevention of anti-competitive behavior. The training program stresses the
importance of receiving an explanation in the reports on operations written by
associates on the impact in terms of not just financial performance but also
environmental and social aspects.From now on, Honda is planning to implement a
more systematic training program including training for outside executives.
Tax Policy
The Honda Tax Policy prescribes the basic stance and thinking regarding taxes for
Honda Motor Co., Ltd. and its consolidated subsidiaries. The policy aims to
contribute to society as well as maintain and increase corporate value by
complying with the tax laws and regulations of each country and regionwhere
Honda undertakes business activities and by making proper tax payments.Tax
systems of each country and region and international taxation rules are
frequently changed. In this environment, to ensure the proper execution of its
business in a stable manner Honda carries out accurate and high-quality tax
affairs and responds to tax risks associated with its businesses in accordance with
the Tax Policy.
Honda Code of Conduct
In order to earn the trust of customers and society and grow sustainably,
companies must not only comply with laws and regulations but go beyond those
legal structures by practicing ethical corporate conduct.Recognizing this, Honda
formulated the Honda Code of Conduct, which summarizes the sincere behavior
to be practiced by people working at Honda around the world. This is shared
throughout the entire Honda Group, including subsidiaries in Japan and
overseas.The Company works to instill the Honda Code of Conduct in each and
every associate through actions such as the distribution of leaflets, posting of
information on its intranet and through training. Each of Honda’s departments
and subsidiaries regularly checks the status of activities to ensure awareness of
the Code, and, reports to the Compliance Committee.
Business Ethics Improvement Proposal Line
Honda established the Business Ethics Improvement Proposal Line as a
mechanism for improving corporate ethics issues. This hotline addresses issues
involving corporate ethics in cases of actions thatviolate laws or internal rules.
This allows the Company to accept suggestions and provide consultation, from a
fair and neutral standpoint, for associates who face barriers in improving or
resolving issues in the workplace for reasons such as difficulties in consulting with
superiors.
FurthermoreFurthermore, in addition to cases of a clear violation of laws or
internal rules, this hotline provides consultation and responds to inquiries about
the details of internal rules when questionable actions have occurred, and also
engages in fact checking related to such cases. Suggestions are accepted by email,
letter, telephone or fax from all subsidiaries and suppliers in Japanand overseas,
as well as from the parent company. Anonymous suggestions are also accepted
for the protection of submitters.
Moreover company established a point of contact within an external law office to
facilitate associates to submit suggestions. As for overseas, local points of contact
have been established in all Regional Operations, while some subsidiaries set up
their own points of contact.
In FY2019, 445 suggestions and consultations were handled by the Business Ethics
Improvement Proposal Line (including points of contact outside the Company).
Among these, 190 concerned the parent company, 240 concerned subsidiaries
and 15 concerned other matters. Following investigations, disciplinary action was
taken in two cases involving the parent company and 11 cases involving
subsidiaries, and none of these cases resulted in punitive dismissal. None of the
cases involved violations of the Honda Policy on the Prevention of Bribery.
Inrder to raise internal awareness of the points of contact, Hondaprovides notice
on its our intranet, distributes information cards to all associates, including fixed-
term employees and temporary workers, anddisplays information posters in each
workplace. These tools also make it clear that the associates submitting
suggestions will be protected at the same time. In addition, Honda observes how
well these points of contact are recognized through associate surveys conducted
once every three years for all associates. For departments found in these surveys
to have low recognition of the points of contact, the Company makes additional
efforts to increase their awareness.

Corporate Social Responsibility

 Honda Motorcycle & Scooter India will strive to be a Company which the society wants to exist.
 HMSI shall direct its resources to the extent reasonable in order to improve the quality of life of the
people by focusing on Environment, Education, Sports, Rural Development & other Humanitarian & Social
causes to enhance the joys in their lives
 HMSI will respect Human dignity and all applicable laws.
 HMSI will positively impact & influence society for its sustainable development.