Honda Market Update
Today, Honda Motor Co., Ltd. executives—including Director, President and Representative Executive Officer Toshihiro Mibe, and Director, Executive Vice President and Representative Executive Officer Noriya Kaihara—delivered a comprehensive business update during the company’s FY2025 briefing.
Motorcycles: Record Performance and Future Outlook
For the Japanese fiscal year ending March 31, 2025, Honda reported global motorcycle sales of 20.57 million units, equating to an estimated 40% share of the global motorcycle market. The company also noted record-breaking annual sales performance in 37 countries and territories, marking a new high watermark for its two-wheeled division.
Looking forward, Honda anticipates further market expansion, particularly in India, the world’s largest motorcycle market. Honda forecasts that the current global market of approximately 50 million units will grow to 60 million units by 2030.
To address this rising demand, Honda plans to expand its portfolio with products tailored to the diverse needs of riders globally, while enhancing the efficiency and flexibility of its supply chain.
Electrification Strategy and Sustainability Initiatives
As part of its long-term strategy, Honda is accelerating electrification efforts while continuing to enhance the fuel efficiency of its internal combustion engine (ICE) models. In markets where relevant, the company will also expand its lineup of flex-fuel-compatible models.
Key developments in FY2025 include:
- Launch of electric models Active e: and QC1 in India (Feb 2025).
- Rollout of CUV e: and ICON e: electric commuter models launched first in Indonesia, followed by Vietnam, Thailand, and the Philippines. European and Japanese launches are scheduled for later this year.
- Construction of a dedicated electric motorcycle plant in India, set to commence operations in 2028. The facility will produce modular EV models designed from the ground up as electric vehicles.
Honda aims to make affordable electric motorcycles more accessible and is targeting global leadership in the electric two-wheeler market.
By FY2031, Honda projects that its combined ICE and electric motorcycle business will secure a 50% global market share and deliver a return on sales (ROS) exceeding 15%.
Automotive Business: Adjusting Strategy Amidst EV Challenges
The briefing also highlighted developments in Honda’s automotive division.
While the uptake of full electric vehicles (EVs) has been slower than anticipated, Honda reaffirmed its commitment to the segment with adjusted strategies, including:
A reassessment of powertrain portfolios.
An updated ADAS (Advanced Driver Assistance Systems) suite with new safety features, scheduled to begin rollout in 2027.
Honda’s hybrid electric vehicle (HEV) business, however, continues to show strong momentum. Key targets include:
Growing total automobile sales from the current 3.6 million units, with a HEV sales goal of 2.2 million units.
Aiming to reduce next-generation hybrid system costs by over 30%.
Launching 13 new-generation HEV models globally over four years starting in 2027.
The North American market has been identified as a primary focus area, with Honda developing a large-vehicle hybrid platform offering “powerful driving performance and high towing capability.” Products are expected to arrive in market within the next few years.
Despite these ambitions, Honda acknowledged delays in its Canadian plant development and has revised down its EV-related R&D budget from ¥10 trillion to ¥7 trillion.
