Honda Motor Co., Ltd. (HMC): Business Model Canvas [Dec-2025 Updated]

You're looking at Honda Motor Co., Ltd. (HMC) right now, and honestly, the story isn't just about cars; it's about a massive, $\text{JPY 21,688.7 billion}$ revenue machine navigating the trickiest pivot in its history. As someone who's spent years mapping these giants, I see a company balancing record-breaking motorcycle sales-a staggering $\text{20.57 million}$ units in FY2025-with a $\text{\$7.257 billion}$ R\&D bet on the future, including the Sony Afeela EV. This Business Model Canvas cuts through the noise, showing exactly how Honda is funding its aggressive electrification strategy, managing its legacy ICE business, and locking down key battery partnerships to hit its 2050 safety goal. If you want to see the precise blueprint for how a century-old manufacturer is fighting to stay relevant, dig into the nine blocks below.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Key Partnerships

You're looking at the hard numbers behind Honda Motor Co., Ltd.'s strategic alliances as of late 2025. Here's the quick math on the key players shaping their mobility future.

EV and Software-Defined Vehicle Platform Partnership

The joint venture with Sony Group Corporation for the Afeela electric vehicle platform shows significant upfront investment costs.

• Sony Honda Mobility reported an operating loss of ¥52 billion (approximately $362 million) for the fiscal year ending March 2025.
• This loss more than doubled the prior year's deficit of ¥20.5 billion.
• The Afeela is scheduled to go on sale later in 2025 with a starting price of $89,900.
• The combined operating profit of the parent companies, Sony and Honda, exceeded ¥2.6 trillion in the latest fiscal year.

North American EV Battery Joint Venture with LG Energy Solution

This partnership is set to begin mass production by the end of 2025, establishing a major North American supply base.

Metric	Value	Notes
Annual Production Capacity Goal	Approximately 40 GWh	For advanced lithium-ion battery cells.
Total Projected Investment	$4.4 billion	Overall commitment related to the JV.
Initial Committed Investment	$3.5 billion	Committed for the new plant construction.
JV Initial Capital	$210 million USD	Ownership split: 51% LG Energy Solution, 49% Honda Motor Co., Ltd.
Mass Production Start Target	End of 2025	For the Jeffersonville, Ohio plant.

Canadian EV Battery and Material Supply Chain Partnerships

Honda Motor Co., Ltd.'s comprehensive EV value chain project in Canada, involving GS Yuasa, POSCO Future M, and Asahi Kasei, has been recalibrated due to market conditions.

• The project, which includes in-house battery production with GS Yuasa and material JVs with POSCO Future M (cathode materials) and Asahi Kasei (separators), has been postponed by approximately two years as of May 2025.
• The original planned start for the stand-alone EV battery plant in Alliston, Ontario, was 2028, suggesting a revised target around 2030.
• The original planned capacity for the Canadian battery plant was 36 GWh per year.
• The estimated total investment for the original comprehensive Canadian project (including partners) was approximately $10-11 billion USD.
• Honda is reducing its resource investment in electrification by 3 trillion yen over the period through the FY2031 compared to prior plans.

Global Component Supplier Network for ICE and HEV Parts

While focusing on EVs, Honda maintains significant targets for its transitional Hybrid Electric Vehicle (HEV) lineup.

• Honda's HEV sales target for the year 2030 is 2.2 million units.
• Honda forecasts its operating income for the fiscal year ending March 31, 2026, to be approximately ¥500 billion.
• This compares to the operating income of ¥1.21 trillion reported for the fiscal year ended March 31, 2025.
• Honda aims to reduce overall production cost by approximately 35% by 2030 through its vertically-integrated EV value chain efforts.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Key Activities

You're looking at the core engine driving Honda Motor Co., Ltd. right now, and it's definitely still the two-wheeler business, even as the auto side pivots hard. The sheer scale of their motorcycle operations is what underpins everything else.

Manufacturing and global distribution of motorcycles remains a massive activity. For the full fiscal year ending March 31, 2025, Honda's global motorcycle output climbed by 9.3%, surging to an extraordinary 20.572 million units sold. That's a huge number to manage globally.

Here's a quick look at where that volume came from in FY2025:

Region	Unit Sales (FY2025)	Percentage of Total Volume
Asia (Crucial Markets)	17.478 million	Approximately 85%
North America	548,000	Approximately 2.7%
Europe	475,000	Approximately 2.3%
Japan (Domestic)	224,000	Approximately 1.1%

Also central to the activity is the heavy investment in the future, which means Research and Development (R&D). For fiscal year 2025, Honda reported annual R&D expenses of approximately $7.257 billion. This spending is critical for navigating the shift away from pure internal combustion engine (ICE) reliance.

To give you some context on the financial scale of the business supporting this R&D:

Financial Metric (FYE March 31, 2025)	Amount
Global Motorcycle Output	20.572 million units
Motorcycle Segment Operating Profit	501.6 billion yen
Total Revenue (Motorcycle Business)	£18.536bn (Total Company Revenue)
Total Operating Profit (Company)	£3.391bn

Accelerating the electrification strategy for both automobiles and motorcycles is a key activity, though it's definitely being recalibrated based on market realities. You see this in the shift in focus. While they still have long-term EV goals, the near-term activity is strengthening the hybrid-electric vehicle (HEV) lineup. They are planning to introduce 13 next-generation hybrid models worldwide between 2027 and 2031. For electric motorcycles, the long-term goal remains to increase annual sales to 4 million units by 2030, but the immediate product rollout is being managed carefully.

Developing the software backbone is another major undertaking. This includes the ongoing work on Advanced Driver Assistance Systems (ADAS) for safety and the development of the ASIMO OS software platform, which is intended to serve as a foundational operating system for future mobility products. This is where a lot of that R&D spend is definitely going.

Finally, managing a flexible global production system is a non-negotiable activity. This system has to handle the current mix of technologies efficiently. For instance, their Maryville Auto plant is specifically set up to produce traditional ICE vehicles, HEVs, and EVs all on the same assembly line. This flexibility helps them respond quickly to regional demand swings, like the current strong appetite for hybrids in North America versus the EV challenges elsewhere.

The core activities boil down to this:

• Maintain volume leadership in global motorcycle sales.
• Invest $7.257 billion in R&D for FY2025.
• Strategically pivot to prioritize profitable HEVs in the short term.
• Build out the software and EV component supply chain.
• Ensure production lines can switch between ICE, HEV, and EV.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Key Resources

You're looking at the core assets Honda Motor Co., Ltd. (HMC) relies on to execute its business plan as of late 2025. These aren't just items on a balance sheet; they are the engines of their competitive advantage, so let's break down the hard numbers and tangible assets they possess.

The financial bedrock is substantial. As of the fiscal year end on March 31, 2025, Honda Motor Co., Ltd. reported JPY 4,528.7 billion in cash and cash equivalents. That's a significant war chest for R&D and capital expenditures, especially given the recent strategic pivot toward prioritizing hybrid technology.

When we look at physical assets, the global manufacturing footprint is key. Honda maintains a worldwide network of production sites, which, according to the structure of their operations, includes 31 automotive plants globally. This scale allows for localized production, a strategy they emphasize by producing locally where there is demand. [cite: 1 from third search]

The company's intangible assets, particularly in engineering, are critical. Honda owns the trademarked VTEC technology, with original patents having expired but newer implementations like A-VTEC being protected. [cite: 3 from second search] Furthermore, their expertise in electrification is protected by intellectual property, evidenced by licensing agreements for hybrid vehicle technology with other major automakers. [cite: 2 from second search]

Reputation is a quantifiable asset, too. For the 2025 Kelley Blue Book Consumer Choice Awards, Honda was recognized more than any other brand, securing five awards, including the titles of America's "Most Trusted Brand" and "Best Value Brand." [cite: 3 from third search] This trust translates directly into customer loyalty and helps support their extensive physical reach.

That physical reach is supported by a massive sales and service infrastructure. Honda delivers products and services to customers worldwide through a network comprising more than 30,000 Honda dealers. [cite: 1, 2 from third search] This network supports both their automotive and their massive motorcycle business, which achieved a cumulative global production milestone of 500 million units as of May 2025. [cite: 1 from third search]

Here's a quick look at how some of these key resources relate to their core business segments:

Key Resource Component	Quantifiable Metric/Data Point	Relevance
Financial Strength (Cash)	JPY 4,528.7 billion (as of March 31, 2025)	Liquidity for operations and strategic investment.
Manufacturing Footprint	31 automotive plants	Capacity for global supply chain and localized manufacturing.
Dealer/Service Network	More than 30,000 dealers globally	Customer touchpoints for sales, service, and support.
Brand Equity (2025 Awards)	Won "Most Trusted Brand" and "Best Value Brand"	Consumer perception driving purchase decisions.

The combination of proprietary engine technology and a vast physical network means Honda can execute on its strategy to enhance hybrid competitiveness, aiming for 2.2 million HEV sales annually by 2031. [cite: 7 from third search] The ability to leverage their established manufacturing base for mixed-model production lines is a direct benefit of these resources. [cite: 7 from third search]

You can see the scale of their operational network through their regional presence, which is supported by their employee base across key markets:

• Employees in the United States: 18,322
• Employees in India: 7,350
• Employees in Mexico: 4,891
• Employees in Canada: 4,522

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Value Propositions

You're looking at the core promises Honda Motor Co., Ltd. (HMC) is making to its customers as of late 2025. It's a mix of legacy strength and a massive, sometimes costly, pivot toward future mobility.

The foundation remains the joy and freedom of mobility across its three main pillars. For fiscal year ended March 31, 2025 (FY2025), consolidated sales revenue hit JPY 21,688.7 billion. That revenue was supported by sheer volume, with Honda selling 3.7 million light vehicles and 20.6 million motorcycles globally, including joint ventures. The Motorcycle business, which still holds the title as the world's top-selling line since 1959, delivered a record-high sales volume, operating profit, and operating margin in FY2025.

Here's the quick math on how the segments contributed to that revenue base in FY2025:

Business Segment	Revenue Contribution (Approximate)
Automobiles	65%
Motorcycles	17%
Power Products and Financial Services	Remainder

The Automobile Business recorded an operating loss of ¥73.0 billion for the six months ended September 30, 2025, a decline of ¥331.0 billion year-on-year, largely due to tariff impacts and EV market changes. Still, North American sales remained strong in Q1 FY2026.

Safety is a non-negotiable commitment, backing up that freedom of mobility. Honda aims for zero traffic collision fatalities involving its motorcycles and automobiles globally by 2050. The immediate milestone for this goal is reducing global traffic collision fatalities involving its vehicles by 50% by 2030.

Transitioning the fleet is happening now, heavily favoring hybrids over pure EVs in the near term. You see this in the sales mix:

• Honda's global EV sales ratio target for 2030 has been revised down to 20%, from 30%.
• The company plans to launch 13 next-generation HEV models starting from 2027.
• The annual HEV sales target is 2.2 million units by 2030.
• In November 2025, Honda's year-to-date sales of electrified vehicles reached 385,453 units.
• For the CR-V model, hybrid sales represented over 50% of its sales mix in 2024.

For the next wave of pure EVs, the focus is on the Honda 0 Series, which debuted prototypes at CES 2025. The production timeline for North America is set for 2026 for both the Saloon and SUV models. To support this, the L-H Battery Company joint venture facility is scheduled to begin production late in 2025, with an annual capacity of approximately 40GWh. This is part of a larger commitment to introduce a wave of 30 new EVs globally by 2030 and achieve 100% zero-emission automobile sales in North America by 2040.

For emerging markets, the value proposition is rooted in the strength of the core motorcycle business, which saw sales expansion in Brazil and Vietnam in Q1 FY2026. The entire motorcycle division achieved record-high unit sales, operating profit, and operating margin in FY2025.

If you're tracking the EV investment costs, Honda recognized significant losses and expenses totaling ¥237,263 million for the six months ended September 30, 2025, related to EV market changes and discontinued projects. Finance: draft the Q3 2025 cash flow variance analysis by next Tuesday.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Customer Relationships

For the core automobile business, Honda Motor Co., Ltd. maintains a traditional dealer-based sales and after-sales service model across most major markets. This network is the primary touchpoint for vehicle transactions and ongoing maintenance.

In the motorcycle segment, Honda leverages an extensive global infrastructure. For fiscal year ending March 31, 2025 (FY2025), Honda could deliver products through more than 30,000 Honda motorcycle dealership locations worldwide. To be specific in the Indian market, the network consists of 6,000 dealership locations.

The relationship strategy for the new electric vehicle (EV) venture, Sony Honda Mobility Inc. (SHM) and its AFEELA brand, introduces a significant shift toward digital engagement and online configuration. The AFEELA 1 model, unveiled at CES 2025, is designed to evolve through Over-the-Air (OTA) updates, fostering an interactive relationship with the user. SHM is establishing a direct-to-consumer (DTC) marketing strategy for AFEELA in the US market, moving away from the traditional reliance on dealerships for this specific product line. Customers can place online reservations for the AFEELA 1 with a fully refundable fee of $200. The vehicle's intelligence layer relies on advanced hardware, including an ECU with up to 800 TOPS computing power and 40 sensors.

Long-term brand loyalty remains a cornerstone, heavily cultivated through the reputation for reliability and performance. Based on Q1 2025 benchmarking data, Honda's Net Promoter Score (NPS) stands at 57, which is significantly higher than the automotive industry average of -41. This score is supported by 70% of respondents being classified as Promoters, versus only 13% as Detractors. This commitment to long-term trust is also framed by ambitious safety goals; Honda targets achieving zero traffic collision fatalities globally by 2050, with a milestone of halving worldwide traffic fatalities involving its vehicles by 2030 compared to 2020 levels. Furthermore, more than 10 million Acura and Honda vehicles on North American roads feature the Honda Sensing® or AcuraWatch® suites of driver-assistive technologies.

Direct-to-consumer relationships are also utilized for specific segments outside of the main automobile business. For Honda motorcycles, the FY2025 global unit sales target was 20.2 million units, representing approximately a 40% share of the global market. In the first half of 2025, motorcycle sales reached 9.9 million units, marking a 3.0% increase year-over-year. While the primary sales channel remains dealer-based, the strategy for electric motorcycle models, such as those launched in India, involves leveraging the broad sales network to enhance the battery charging network, directly addressing customer anxiety related to battery range.

For the established automobile business, dedicated customer support for safety and software updates is integrated into the ownership experience, aligning with the Software Defined Vehicle (SDV) focus. Honda reports leveraging accumulated data for management decisions to improve decision-making speed and accuracy, aiming to maximize product lifetime value through enhanced customer engagement. In Japan, the 'Honda Total Care' membership service provides information for car management and maintenance, with the Emergency Support Center operating 24 hours a day, seven days a week for road assistance following incidents like breakdowns or collisions. The company's overarching quality objective is to be "No. 1 in customer satisfaction in all points of contact."

Here are key quantitative metrics reflecting Honda Motor Co., Ltd.'s customer relationships as of late 2025:

Relationship Metric	Value/Amount	Segment/Context
Global Motorcycle Dealership Locations	More than 30,000	Global Motorcycle Business
India Motorcycle Dealership Locations	6,000	India Motorcycle Business
Net Promoter Score (NPS)	57	Automobile Customer Loyalty (Q1 2025)
Automotive Industry Average NPS	-41	Industry Benchmark (Q1 2025)
Promoters (% of Respondents)	70%	Honda NPS Survey Respondents
Detractors (% of Respondents)	13%	Honda NPS Survey Respondents
AFEELA 1 Reservation Fee	$200 (Refundable)	Sony Honda Mobility EV Pre-order
AFEELA 1 ECU Computing Power	Up to 800 TOPS	Intelligent Drive System
Vehicles with Honda Sensing/AcuraWatch (NA)	More than 10 million	Safety Technology Adoption in North America
FY2025 Global Motorcycle Unit Sales Target	20.2 million units	Motorcycle Business
H1 2025 Global Motorcycle Sales	9.9 million units	Motorcycle Business

The company's commitment to service is underscored by the 24/7 availability of the Honda Total Care Emergency Support Center in Japan. This focus on post-sale support helps maintain the high loyalty scores seen in the NPS data. Finance: draft 13-week cash view by Friday.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Channels

You're looking at how Honda Motor Co., Ltd. gets its products into customers' hands across the globe as of late 2025. It's a multi-pronged approach, balancing massive physical footprints with necessary digital integration.

The independent, authorized global dealership network remains the backbone for vehicle sales, though specific numbers for the automobile dealer network aren't explicitly detailed in the latest filings, we know the scale of the motorcycle side is immense. Honda delivers its two-wheeled products to customers through more than 30,000 Honda motorcycle dealership locations worldwide. This vast physical presence supports the company's global unit sales, which hit a record 20.57 million units for the fiscal year ended March 31, 2025.

For motorcycles, the distribution strategy heavily leans on local presence, especially in Asia, which accounts for 85% of global unit sales. The scale in key markets is significant, with India alone having a sales network consisting of 6,000 dealership locations.

Here's a look at the channel volume and reach in major Asian motorcycle markets for the first half of 2025:

Region	H1 2025 Unit Sales	Channel Note
Asia-Pacific (Total H1 2025)	Not explicitly stated, but total global H1 2025 was 9.9 million units	Accounts for 85% of global unit sales
Vietnam (H1 2025)	1,108,793 units	Market leader driving sales expansion
Philippines (H1 2025)	910,923 units	Top seller aiming for 1 million units for the full year
India (Projected Annual)	Projected at 10 million units annually	Largest market, supported by 6,000 dealerships

The financial services arm, operating as Honda Financial Services and Acura Financial Services in North America, is crucial for moving product by offering financing options. This segment secures stable earnings based on a strong customer base. As of March 31, 2025, the net carrying amount of retail loans transferred to Special Purpose Entities (SPEs) stood at $13.0 billion. To support vehicle acquisition, American Honda Finance Corp. looks to maintain a lease penetration near 30% through 2025, with the Honda-specific target being a healthy range of 30% and 35%.

Honda Motor Co., Ltd. is strengthening its global initiatives in the digital domain to accelerate corporate transformation. The channels here focus on customer engagement:

• Online platforms for detailed product information and specifications.
• Digital tools for customer service and after-sales support.
• Digital reservation systems for new or limited-run models.

For Power Products, which includes generators and lawn mowers, the distribution channel strategy has seen recent shifts, defintely in the US market. For instance, in September 2023, Honda ceased sales of gasoline lawn mowers and some other power equipment in the U.S.. The company continues to deliver these products through authorized retail stores and dealers globally, leveraging its production capabilities at facilities like the one in North Carolina.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Customer Segments

You're looking at the core groups Honda Motor Co., Ltd. serves globally as of late 2025. It's a diverse set of buyers, from daily commuters needing basic transport to tech enthusiasts wanting the latest EV. Honestly, the sheer volume in some segments dictates the entire strategy.

The largest single group, by unit volume, is definitely the global two-wheeler market, especially in the Global South and Asia. For the fiscal year ending March 31, 2025, Honda Motorcycle unit sales reached a record 20.57 million units. This volume represents about 40% of the entire worldwide motorcycle market. They are targeting the commuters and small businesses in places like India, Indonesia, and Brazil with these high-volume, lower-cost machines.

For the automobile side, the mass-market consumer remains central, though the mix is shifting. In the US market alone for calendar year 2025, American Honda Motor Company targeted sales of 1,510,000 vehicles, broken down into 1.35 million Honda-branded models and 160,000 Acura units. The CR-V mid-size SUV was a key volume driver last year. However, the overall FY2025 forecast for global automobile unit sales was a decline to 3.75 million units.

The high-tech, early adopter segment is smaller but strategically vital for future growth. This group is targeted by the joint venture product, the Afeela. This premium EV is scheduled to go on sale later this year with a starting price point of $89,000. Developing this product has been costly; the Sony Honda Mobility venture reported an operating loss of ¥52 billion ($362 million) for the fiscal year ending March 2025.

Honda serves commercial and residential users through its Power Products division. While we don't have the unit sales for lawnmowers or generators, we know the segment's financial contribution was challenging in the recent reporting period. For Q3 of FY2025, the Power Products and other businesses segment posted a loss of 9.3 billion yen. This shows the investment and cost pressures in that specific customer base.

Finally, you have the institutional buyers. These customers-fleet operators and government agencies-are crucial for large, predictable orders, even if they aren't the primary focus for consumer marketing. Overall, Honda delivers over 28 million products annually across its three main lines, which includes these bulk purchasers. The company's total consolidated sales revenue for the fiscal year ending March 31, 2025, was JPY 21,688.7 billion.

Here's a quick look at the unit volume distribution across the core product lines for context:

Product Line	FY2025 Unit Volume (Approximate)	Key Market Focus
Motorcycles	20.57 million	Global South/Asia Commuters
Automobiles (Forecast)	3.75 million	Global Mass Market (US, Japan, etc.)
Total Products Delivered (Annualized)	Over 28 million	Global

The strategy definitely leans on the massive volume of two-wheelers to fund the transition to higher-value automobiles and new EVs like the Afeela. If onboarding for the Afeela takes longer than expected, the pressure on the core auto business to maintain profitability increases defintely.

Finance: draft 13-week cash view by Friday.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Cost Structure

You're looking at the hard numbers driving Honda Motor Co., Ltd.'s operational expenses for the fiscal year ending March 31, 2025. The cost structure is heavily weighted toward production and future-proofing the business, which is typical for a global manufacturer navigating an industry pivot.

Cost of Sales, which is the direct cost of producing the vehicles and motorcycles sold, remains the single largest drain on revenue. For the fiscal year ended March 31, 2025, this figure hit JPY 17,024.7 billion. This massive outlay covers raw materials, direct labor, and manufacturing overhead across the global footprint. It's important to note that the Operating Profit for the same period was JPY 1,213.4 billion, showing how much of the revenue is consumed before even considering other operating expenses.

Honda Motor Co., Ltd. maintains a global manufacturing and supply chain infrastructure that inherently carries high fixed costs. This structure is designed for scale and resilience, involving the upkeep of numerous production plants and complex logistics networks worldwide. The company focuses on strong supplier relationships, just-in-time manufacturing, and technology integration to manage these costs, but the underlying asset base represents a significant, non-negotiable cost commitment.

The push toward electrification is clearly visible in the Research and Development (R&D) expenditure. For FY2025, the impact of increased R&D expenses resulted in a profit decline of JPY 153.5 billion. This reflects heavy investment in future technologies, including the development of the Honda 0 Series models and related systems. Total Research and development costs recorded for the full fiscal year ended March 31, 2025, were JPY 1,099,482 million (or JPY 1,099.5 billion).

Capital expenditure (CapEx) is also heavily skewed toward transforming production capacity. Honda Motor Co., Ltd. is investing over $1 billion to retool its Ohio manufacturing plants to create the 'Honda EV Hub,' enabling flexible production of ICE, hybrid, and EV models on the same lines. This investment is part of a broader strategy to establish the capability for future EV production in North America.

Finally, non-production costs included a notable one-time financial hit related to product quality and estimation adjustments. Specifically, the change in the estimation model for automobile product warranties resulted in a negative impact of JPY 127.6 billion in FY2025.

Here is a breakdown of key operating cost components for the fiscal year ended March 31, 2025, compared to the prior year:

Cost Component (JPY million)	FYE March 31, 2024	FYE March 31, 2025
Cost of sales	(16,016,659)	(17,024,788)
Selling, general and administrative	(2,106,539)	(2,351,011)
Research and development	(923,627)	(1,099,482)
Total operating costs and expenses	(19,046,825)	(20,475,281)

The cost structure is also impacted by specific, non-recurring events that affect profitability:

• Change in automobile product warranty estimation model impact: JPY 127.6 billion negative impact.
• Profit decline due to increased Research and development expenses: JPY 153.5 billion.
• Estimated negative impact from U.S. tariff measures (outlook): JPY 650 billion on operating profit.

The company is actively working to offset these costs through internal efficiency measures:

• Cost reduction efforts planned to mitigate tariff loss: approximately JPY 200 billion.
• System cost reduction on the previous e:HEV system compared to the current system: 25%.

Finance: review Q2 2025 cash flow statement for actual CapEx spend vs. planned EV Hub investment by end of next week.

Honda Motor Co., Ltd. (HMC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Honda Motor Co., Ltd. (HMC) brings in money as of late 2025. It's a mix of high-volume mobility and supporting finance.

The top-line number for the fiscal year ended March 31, 2025, was a consolidated sales revenue totaling JPY 21,688.7 billion. This represented a 6.2% increase from the prior fiscal year, driven significantly by the Motorcycle business and positive foreign currency translation effects.

The revenue streams are clearly anchored by two major product categories, with the rest coming from supporting services and other products. Here's how the revenue was generally distributed for fiscal 2025, based on the consolidated sales:

• Automobiles constituted approximately 65% of the total revenue.
• Motorcycles accounted for about 17% of the total revenue.
• The remaining portion, about 18%, came from Financial Services and Power Products.

The motorcycle segment was a standout performer in terms of volume, achieving a record-breaking year. Honda Motor Co., Ltd. sold an extraordinary 20.57 million units globally in the Fiscal Year Ended March 31, 2025. This volume represented approximately 40% of the global market share. The Asian market, including India, Indonesia, Thailand, and Vietnam, was the primary driver, accounting for 85% of these global unit sales, totaling 17.17 million units.

Automobile sales revenue, which includes Hybrid Electric Vehicles (HEVs) and other light vehicles, remains the single largest revenue component, making up 65% of the total. While the motorcycle segment saw record unit sales, the automobile segment faced headwinds, with unit sales expected to decline to 3.75 million units for FY2025, reflecting weaker performance in markets like Japan.

To give you a clearer picture of the segment contributions, here is a look at the revenue-generating segments and their reported operating profit contributions for the Fiscal Year Ended March 31, 2025, where available:

Revenue Stream Segment	FY2025 Revenue Share (Approximate)	FY2025 Segment Operating Profit (JPY Billion)
Automobile Sales	65%	402.6
Motorcycle Sales	17%	501.6
Financial Services	Part of remaining 18%	244.9
Power Products & Other	Part of remaining 18%	-9.3 (Loss)

Financial Services revenue is generated from leasing and financing activities, primarily supporting the sale of automobile products. This segment delivered a solid operating profit contribution of JPY 244.9 billion in the period.

Sales of Power Products, which include generators, marine engines, and lawn mowers, contribute to the revenue base but posted a segment operating loss of JPY 9.3 billion for the fiscal year. This category, alongside Financial Services, makes up the residual portion of the total revenue after the core Automobile and Motorcycle segments.

Finance: draft 13-week cash view by Friday.