20-F: Honda Reports FY2025 Profit Decline Amid Strategic EV Revisions and Increased R&D Spending

Sentiment:

Annual Report 18 June 2025 6:03 AM

Honda Motor Co., Ltd. announced a 6.2% increase in consolidated sales revenue for the fiscal year ended March 31, 2025, reaching ¥21,688.7 billion, but reported a 12.2% decrease in operating profit to ¥1,213.4 billion, influenced by higher R&D expenses and a significant adjustment to automobile product warranty provisions.

Delay expectedHonda decided to postpone its plan to establish a comprehensive EV value chain in Canada by approximately two years due to the current slowdown in EV demand.

Worse than expectedOperating profit decreased by 12.2% in FY2025 compared to FY2024.Profit before income taxes decreased by 19.8% in FY2025 compared to FY2024.Profit for the year attributable to owners of the parent decreased by 24.5% in FY2025 compared to FY2024.Share of profit from equity method investments had a negative impact of ¥109.8 billion, mainly due to decreased profit at affiliates and joint ventures in Asia.Automobile business consolidated unit sales slightly decreased by 0.6%.Power Products and Other Businesses unit sales decreased by 2.9% and revenue decreased by 1.8%, resulting in an operating loss.Operating loss of aircraft and aircraft engines increased to ¥38.8 billion.The company postponed its comprehensive EV value chain project in Canada by approximately two years and reduced planned investment by ¥3 trillion, indicating a slowdown in EV strategy execution.Withdrawal of the 30% global EV/FCEV sales ratio target by 2030 due to slower-than-expected EV adoption.

Summary

Consolidated sales revenue for the fiscal year ended March 31, 2025, increased by 6.2% to ¥21,688.7 billion from the previous fiscal year.
Operating profit decreased by 12.2% to ¥1,213.4 billion, primarily due to decreased profit from sales impacts, increased research and development expenses, and a change in the estimation model for automobile product warranties.
Profit before income taxes decreased by 19.8% to ¥1,317.6 billion, further impacted by a negative share of profit from equity method investments in Asia.
Profit for the year attributable to owners of the parent decreased by 24.5% to ¥835.8 billion.
Motorcycle business consolidated unit sales increased by 12.0% to 13,685 thousand units, with revenue rising 12.6% to ¥3,626.6 billion.
Automobile business consolidated unit sales slightly decreased by 0.6% to 2,840 thousand units, though revenue increased by 4.4% to ¥14,169.2 billion, mainly due to positive foreign currency translation effects.
Financial Services business revenue increased by 8.0% to ¥3,507.7 billion.
Power Products and Other Businesses consolidated unit sales decreased by 2.9% to 3,700 thousand units, and revenue declined by 1.8% to ¥385.1 billion, resulting in an operating loss of ¥9.4 billion.
Research and development expenses increased by 19.0% to ¥1,099.4 billion.
A change in the estimation model for automobile product warranties increased provisions by ¥127.6 billion, impacting selling, general and administrative expenses.
Capital expenditures for FY2025 were ¥4,036.8 billion on an accrual basis, with ¥902.7 billion excluding operating leases.
The company postponed its plan to establish a comprehensive EV value chain in Canada by approximately two years, reducing total planned investment in capital expenditures, investment, and R&D by ¥3 trillion, to a total of ¥7 trillion through the fiscal year ending March 31, 2031.
Honda withdrew its initial target of a 30% global EV/FCEV sales ratio by 2030 due to slower-than-expected EV adoption, while maintaining the long-term goal of 100% EV/FCEV sales globally by 2040.
The dividend policy will shift from a 30% consolidated payout ratio to a DOE (dividend on adjusted equity attributable to owners of the parent) target of approximately 3.0% from FY2026 onward.
Total dividends for FY2025 were ¥68 per share (¥34 interim, ¥34 year-end).

Sentiment

Score: 4

Explanation: While sales revenue increased, the significant decline in operating and net profits, coupled with the postponement of a major EV investment and the withdrawal of a key EV sales target, indicates a challenging financial period and strategic adjustments that temper optimism for immediate future performance.

Positives

Consolidated sales revenue increased by 6.2% in FY2025, indicating overall top-line growth.
The Motorcycle business demonstrated strong performance with a 12.0% increase in consolidated unit sales and a 12.6% rise in revenue.
Financial Services business revenue grew by 8.0%, contributing positively to overall sales.
Significant investment in Research and Development, with expenses increasing by 19.0% to ¥1,099.4 billion, highlighting a commitment to future innovation.
Continued progress towards long-term environmental and safety goals, including carbon neutrality by 2050 and zero traffic collision fatalities by 2050.
Development and introduction of advanced technologies such as the Honda E-Clutch for motorcycles, next-generation e:HEV systems, and new EV models (N-VAN e:, Honda 0 Series prototypes).
Advancements in battery technology with the unveiling of a demonstration production line for all-solid-state batteries and plans for mass production of next-generation fuel cell modules and power generators.
Strong liquidity position with ¥4,528.7 billion in cash and cash equivalents as of March 31, 2025.
Maintained high credit ratings from Moody's (P-2/A3), Standard & Poor's (A-2/A-), and Rating and Investment Information (a-1+/AA).

Negatives

Operating profit decreased significantly by 12.2% in FY2025, indicating pressure on profitability.
Profit before income taxes and profit attributable to owners of the parent saw substantial declines of 19.8% and 24.5% respectively.
Share of profit from investments accounted for using the equity method had a negative impact of ¥109.8 billion, primarily due to decreased profit from affiliates and joint ventures in Asia.
Automobile business consolidated unit sales experienced a slight decrease of 0.6%.
Power Products and Other Businesses saw declines in both unit sales (2.9%) and revenue (1.8%), resulting in an operating loss of ¥9.4 billion.
The operating loss for aircraft and aircraft engines within Power Products and Other Businesses increased to ¥38.8 billion.
A change in the estimation model for automobile product warranties led to a ¥127.6 billion increase in provisions, negatively impacting expenses.
The postponement of the comprehensive EV value chain project in Canada by approximately two years and a ¥3 trillion reduction in planned EV-related investment signal a slowdown in electrification strategy execution.
Withdrawal of the 30% global EV/FCEV sales ratio target by 2030 due to slower-than-expected EV adoption highlights challenges in the EV market transition.

Risks

Geopolitical risks, including changes in local laws and regulations, tariffs, import/export controls, wars, terrorism, political uncertainty, and human rights laws, could adversely affect business operations and supply chains, with significant additional costs expected from tariffs in FY2026.
Purchasing and procurement risks, such as reliance on certain suppliers, inability to secure continuous supply, rising prices of raw materials (e.g., battery minerals), loss of key suppliers, and quality issues from supplied parts, could lead to production delays or loss of competitiveness.
Information security risks, including cyber-attacks, equipment malfunction, human error, natural disasters, and data breaches, could result in operational suspensions, brand damage, financial penalties, and loss of competitiveness, especially with increasing reliance on software and AI.
Business alliances and joint ventures carry risks of disagreements among partners, profit/technology leakage, decision-making delays, and poor operating results, which are critical as Honda relies on partnerships for its strategic themes.
Environmental risks, including climate change, resource depletion, and stringent regulations on emissions, fuel economy, recycling, and hazardous substances, could impose significant compliance costs and affect production and sales activities.
Intellectual property risks, such as the inability to protect patents and trademarks, illegal infringement, and lawsuits arising from unintentional infringement (e.g., due to AI), could lead to competitive disadvantages, operational suspensions, and large damage payments.
Natural disasters (earthquakes, floods, infectious diseases) pose risks of business suspension and delays due to damage to operations, employees, and infrastructure, with increasing frequency and intensity due to climate change.
Financial and economic risks, including economic slowdowns, currency fluctuations, changes in consumer preferences, rising fuel prices, and higher credit/financing interest rates, could decrease sales and adversely affect operating results.
Industry market risks, such as intensifying competition (e.g., from emerging Chinese EV companies), changes in environmental policies, and global trade wars, could lead to a decline in demand for Honda's products and necessitate revisions to business plans.
Risks inherent in the Financial Services business, including credit risk, lease residual value risks, cost of capital, and access to funding, could adversely affect profitability.
Legal risks from various lawsuits, investigations, and legal proceedings could result in negative outcomes and financial liabilities.
Brand image risk due to product defects or inappropriate actions (e.g., certification test issues) could damage trust and adversely affect business and operating results.
Risks related to post-employment benefits, where changes in actuarial assumptions (discount rate, salary increase rate) could affect defined benefit costs and future funding requirements.
Risks for ADS holders, including fewer rights than direct shareholders, limitations under Japanese law, daily price range limits on Japanese stock exchanges, difficulties in serving process or enforcing U.S. judgments in Japan, and uncertainty regarding dividend receipt if shares are sold after the record date but before dividend resolution.

Future Outlook

Honda aims to achieve carbon neutrality for all products and corporate activities by 2050 and zero traffic collision fatalities involving its motorcycles and automobiles worldwide by 2050, with an interim goal of halving fatalities by 2030 compared to 2020 levels. The company plans to accelerate electrification in motorcycles and power products, while maintaining a flexible strategy for automobile EVs due to market slowdowns, positioning HEVs as a key powertrain during the transition period. Strategic resource allocation will focus on achieving a 10% ROIC by FY2031 and generating over ¥12 trillion in operating cash flows after R&D adjustment. The company is shifting its dividend policy to a DOE target of approximately 3.0% from FY2026 for stable shareholder returns, and will continue to invest in innovative technologies like all-solid-state batteries and next-generation fuel cells.

Management Comments

"Honda believes that it needs to build positive relationships with all stakeholders involved in our corporate activities to solve long-term social issues, as well as constantly working to improve the quality of value we offer."
"Honda plans to maintain a flexible and adaptive strategy to ensure effective resource allocation while closely monitoring developments in the EV market."
"We position Triple Action to ZERO as the core concept guiding our efforts."
"Honda will continue to take on bold challenges with innovative technologies and ideas, powered by the dreams, to realize our vision."
"We position returning benefits to shareholders as one of the most important management priorities."

Industry Context

The automotive industry is undergoing a period of significant transformation driven by intensifying competition from emerging Chinese EV companies, evolving environmental policies in North America and Europe, and global trade tensions. Honda's strategic adjustments, including the postponement of major EV investments and the revision of EV sales targets, reflect the varied and sometimes slower-than-expected pace of EV adoption across different regions. This dynamic environment necessitates a flexible approach to resource allocation and product strategy, with a renewed emphasis on hybrid electric vehicles (HEVs) as a transitional solution. Beyond automobiles, the shift towards carbon neutrality is also accelerating in sectors like construction and industrial machinery, influencing demand for environmentally-conscious power products.

Comparison to Industry Standards

Honda's financial services business operates under highly competitive conditions, competing with commercial banks and other finance and leasing companies for customer financing.
Japanese financial instruments exchanges, where Honda's shares are traded, impose daily price limits, which can restrict an investor's ability to sell shares at a specific price on a given day, a characteristic that differs from some other global markets.
Honda's corporate governance structure, utilizing a 'company with three committees' system (Nominating, Audit, and Compensation Committees) with a majority of outside directors, aligns with Japanese Company Law but differs from typical U.S. corporate governance practices.
Honda's pension plan investment policies are designed to maximize medium-to-long term returns while managing risks, a common objective among large corporations with defined benefit plans.
Honda's credit ratings (Moody's P-2/A3, S&P A-2/A-, R&I a-1+/AA) provide a benchmark for its financial health and borrowing capacity compared to other global automotive manufacturers.
Honda's efforts to comply with global environmental regulations, such as Euro 6/7 emissions standards, CAFE standards in the U.S., and ZEV mandates, reflect its adherence to evolving industry-wide environmental compliance requirements.
The company's adoption of International Financial Reporting Standards (IFRS) for its consolidated financial statements aligns with global accounting benchmarks for multinational corporations.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Director, Executive Vice President and Representative Executive Officer, Compliance and Privacy Officer, Culture Transformation Officer	N/A	Noriya Kaihara	April 2024	Appointment to new roles.
Director, Managing Executive Officer, Compensation Committee Member	N/A	Eiji Fujimura	June 2024	Appointment to new roles.
Director, Full-time Audit Committee Member	N/A	Jiro Morisawa	June 2024	Appointment to new roles.
Director, Nominating Committee Member	N/A	Mika Agatsuma	June 2024	Appointment to new roles.
Chairperson of the Board of Directors	N/A	Toshihiro Mibe	April 2024	Appointment to new role.
Managing Executive Officer, Chief Officer for Supply Chain & Purchasing Operations	N/A	Ayumu Matsuo	April 2025	Appointment to new role.
Managing Executive Officer, Chief Officer for Regional Operations (North America), President, Chief Executive Officer and Director of American Honda Motor Co., Inc.	N/A	Kazuhiro Takizawa	April 2025	Appointment to new role.
Executive Officer, Executive in Charge of Motorcycle and Power Products Electrification Business for Motorcycle and Power Products Operations, Head of Motorcycle and Power Products Electrification Business Unit for Motorcycle and Power Products Operations	N/A	Daiki Mihara	April 2025	Appointment to new role.
Executive Officer, Chief Officer for Automobile Development Operations, Director of Honda R&D Co., Ltd.	N/A	Toshihiro Akiwa	April 2025	Appointment to new role.
Chief Officer for Automobile Operations, Risk Management Officer	N/A	Katsushi Inoue	April 2025	Appointment to new roles.
Chief Officer for Quality Innovation Operations	N/A	Yutaka Tamagawa	April 2024	Appointment to new role.
Chief Officer for Regional Operations (Associated Regions), Executive in Charge of Sales & Customer First for Automobile Operations	N/A	Katsuto Hayashi	April 2024 (Regional Operations), April 2025 (Sales & Customer First)	Appointment to new roles.
Chief Officer for Automobile Production Operations	N/A	Takashi Onuma	April 2024	Appointment to new role.
Chief Officer for Motorcycle and Power Products Operations	N/A	Minoru Kato	April 2024	Appointment to new role.
Director	Two unnamed directors	N/A	During FY2025	Retirement.
Director (concurrently Executive Officer)	One unnamed director	N/A	April 7, 2025	Resignation; STI/LTI for FY2025 not paid and LTI forfeited per clawback policy.
Director, Senior Managing Executive Officer (proposed)	N/A	Katsushi Inoue	June 2025 (proposed)	Proposed for election to the Board of Directors.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Committee Structure	Honda operates under a 'company with three committees' corporate governance system (Nominating, Audit, and Compensation Committees), where each committee must have a majority of outside directors. This system is in accordance with the Company Law of Japan.	Ongoing	Enhances oversight and independence of key governance functions by requiring a majority of outside directors on each committee.
Board Composition	As of the filing date, the Board consists of 11 Directors (6 Outside Directors) and 17 Executive Officers (3 also serving as Directors). A proposal for the June 19, 2025, Ordinary General Meeting of Shareholders suggests a Board of 12 Directors (6 Outside Directors) and 17 Executive Officers (4 also serving as Directors).	Ongoing, with proposed changes from June 19, 2025	Maintains a strong representation of independent outside directors, reinforcing supervisory capabilities and adherence to independence criteria.
Outside Director Independence Criteria	Honda has established additional independence requirements for Outside Directors beyond those mandated by the Company Law, and all current Outside Directors meet these criteria.	Ongoing	Strengthens the independence and objectivity of the Board's oversight functions.
Executive Remuneration System	The remuneration structure for Directors and Executive Officers is designed to motivate contributions to short-term, mid-term, and long-term corporate value, consisting of monthly remuneration, Short Term Incentive (STI) based on annual performance, and Long Term Incentive (LTI) based on midto long-term performance. The composition ratio of variable compensation increases with management responsibility.	Ongoing	Aligns executive incentives with sustainable corporate value creation and strategic goals, including financial and non-financial indicators.
Clawback Policy	Implemented a policy to recover erroneously awarded incentive-based compensation (STI and LTI) in the event of financial restatement or certain misconduct by Executive Officers. This policy applies to compensation paid or granted during the fiscal year of the restatement/misconduct and the preceding three fiscal years.	Ongoing (resolved for FY2019, content continuation resolved for FY2022 and FY2025)	Enhances accountability and reinforces ethical conduct among executive officers, aligning with regulatory best practices.
Officers Shareholding Association and Stock Holding Requirement	Directors and Executive Officers acquire company stock by contributing a portion of their remuneration and are required to continuously hold any stock acquired as LTI or through the Officers Shareholding Association throughout their term and for one year after retirement.	Ongoing	Promotes alignment of interests between management and shareholders by encouraging long-term stock ownership.
Employee Stock Ownership Plan (ESOP) Trust	Introduced a stock grant scheme for Operating Executives and certain Management positions from the fiscal year beginning April 1, 2024, to further enhance their contribution to key initiatives and value creation.	April 1, 2024	Extends performance-linked incentives and ownership alignment to a broader group of key personnel, fostering engagement in strategic goals.
Risk Management Structure	The Senior Managing Executive Officer and Chief Officer for Automobile Operations is appointed as the Risk Management Officer, overseeing significant risks including cybersecurity. A Risk Management Committee, chaired by the Risk Management Officer, deliberates on important risk management matters and reports to the Executive Council.	Ongoing	Establishes a clear and structured approach to identifying, managing, and monitoring company-wide risks, including emerging threats like cybersecurity.
Internal Control over Financial Reporting	Management assessed the effectiveness of internal control over financial reporting as of March 31, 2025, based on the COSO framework, concluding it was effective. KPMG AZSA LLC audited and expressed an unqualified opinion.	March 31, 2025	Provides assurance regarding the reliability of financial reporting and compliance with regulatory requirements.

Legal Proceedings

Honda is subject to various legal proceedings, which are considered ordinary routine litigation incidental to its business.
Provisions for loss contingencies are recognized when an outflow of economic benefits is probable and reliably estimable.
Product liability and personal injury claims are believed to be adequately covered by Honda's insurance and existing provisions.
Punitive damages are claimed in certain lawsuits, but the ultimate outcome of such lawsuits and pending claims is not expected to have an adverse material effect on Honda's consolidated financial position or results of operations.
Honda has been conducting market-based measures related to airbag inflators and may need to recognize additional provisions if new evidence arises, though the amount and timing of potential future losses are not reasonably estimable as of the report date.
Honda confirmed inappropriate cases relating to certification tests for four-wheeled vehicles sold in the past and reported this to Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on May 31, 2024, which could potentially damage Honda's brand image and adversely affect business and operating results.

Related Party Transactions

Honda had sales of ¥717.4 billion and purchases of ¥2,093.8 billion with affiliates and joint ventures accounted for using the equity method during the fiscal year ended March 31, 2025.
As of March 31, 2025, Honda had receivables of ¥263.0 billion from affiliates and joint ventures and payables of ¥312.9 billion to affiliates and joint ventures.
All transactions with related parties are generally made at values that approximate arm's-length prices and are not considered material to Honda's overall business.
Honda has an unrecognized commitment to invest US$112 million (remaining as of March 31, 2025) in L-H Battery Company, Inc., a joint venture with LG Energy Solution, Ltd.

Stakeholder Impact

**Shareholders**: Directly impacted by the decrease in profit attributable to owners of the parent, the new dividend policy shifting to DOE, and share repurchase programs. The long-term strategic shifts and investments aim to enhance corporate value.
**Customers**: Affected by product quality and safety initiatives (e.g., warranty provisions, advanced safety features), new product introductions (EVs, HEVs, new motorcycle models), and financial services offerings.
**Employees**: Subject to human capital management strategies focused on talent development, engagement, and diversity, as well as post-employment benefit plans.
**Suppliers**: Impacted by purchasing and procurement risks, including potential price increases for raw materials and supply chain disruptions, as well as human rights regulations throughout the supply chain.
**Regulatory Authorities**: Honda is subject to and actively engages with various government regulations globally, including environmental (emissions, fuel economy, recycling), safety, and cybersecurity standards.
**Society and Environment**: Directly impacted by Honda's commitment to achieving zero environmental impact (carbon neutrality, clean energy, resource circulation) and zero traffic collision fatalities, contributing to broader societal goals.

Next Steps

Continue to strengthen compliance and governance across corporate activities.
Accelerate electrification efforts in the Motorcycle business, aiming for carbon neutrality in all motorcycle products during the 2040s.
Expand the application of advanced braking systems (ABS/CBS) and high-visibility lights for motorcycles.
Actively promote the functional evolution and widespread use of advanced driver-assistance systems (ADAS) for automobiles, including Honda SENSING and Honda SENSING 360.
Strengthen collaboration with international organizations, such as the United Nations, for global traffic safety initiatives.
Promote research and development related to Safe and Sound Network Technology and standardization for social implementation.
Continue to enhance the application of intelligent technologies and improve the competitiveness of HEV models.
Further advance the proprietary two-motor hybrid system (e:HEV) and platforms.
Expand the lineup of electric-powered products for corporate clients in the Power Products business.
Strengthen collaboration with power unit suppliers, focusing on Japan and Europe.
Offer a full lineup of electric products for landscaping professionals in the U.S. market.
Expand collaborations for small electric products through external partnerships.
Determine the basic specifications of all-solid-state battery cells, with an aim to begin applying them to electrified models in the second half of the 2020s.
Begin mass production of the Honda Fuel Cell Power Generator in 2026.
Begin mass production of the Honda Next Generation Fuel Cell Module in 2027 (fiscal year ending March 31, 2028).
Accelerate efforts to conduct the first flight of the HondaJet Echelon test aircraft for type approval and obtain type certification.
Introduce the production model of the Honda 0 Saloon first in the North American market, then in global markets.
Introduce the production model of the Honda 0 SUV first in the North American market, then in global markets.
Continuously update in-vehicle software based on the ASIMO OS through over-the-air (OTA) updates.
Expand the application of eyes-off functions to all driving situations.
Disclose updated environmental KGI and KPI targets in the upcoming Honda Report 2025.
Proactively pursue and engage in increased dialogue with stakeholders to improve management quality and transparency.
Review and reconsider CAFE standards for all vehicle models produced after model year 2022, as directed by Executive Order 14148.
Implement rules regarding vehicle safety, mandatory installation of collision avoidance systems, and drunk driving prevention technology.
Comply with India's MoRTH regulations requiring seat belt reminders on rear seats in M1 category vehicles manufactured on or after April 1, 2025.
Comply with China's Euro 5 level emission regulation for motorcycles from June 2027.
Comply with Malaysian government's Euro 5 regulations for new motorcycle models from July 2028, and for all models from January 2030.
Comply with Brazil's PROMOT 5 (Euro 5 level) emission regulation for new motorcycles from January 2023 and for all motorcycles from January 2025.
Comply with Brazil's OBD stage 2 requirement for new motorcycle models from January 2025 and for all motorcycles from January 2027.
Prepare for the implementation of motorcycle recycling laws in Europe, China, and India in the near future.
Comply with Vietnam's Ministry of Transport's Level 4 (Euro 4) for motorcycles commencing in July 2026.
Comply with new safety requirements for combustion engine powered rotary lawnmowers and cylinder lawnmowers two years after June 6, 2024.
Comply with European Commission Regulation (EU) 2023/1230 on machinery safety from January 2027.
Comply with European Commission Regulation (EU) 2024/2847 (Cyber Resilience Act) for products with digital elements.
Comply with NHTSA's final rule amending Event Data Recorders (EDR) time series data requirements by September 1, 2027.
Comply with FMVSS307 and FMVSS308 (Hydrogen vehicles) by September 1, 2028.
Comply with mandatory installation of AEB systems for new light vehicles by September 1, 2029.
Comply with seatbelt reminder system for front seats by September 1, 2026, and for rear seats by September 1, 2027.

Key Dates

Date	Description
1946	Unincorporated enterprise established by Soichiro Honda.
September 24, 1948	Honda Motor Co., Ltd. incorporated.
1949	Honda began mass production of motorcycles.
1953	Honda's Power products business began.
1957	Honda became the top Japanese manufacturer in terms of motorcycle production volume; shares first listed on the Tokyo Stock Exchange.
1959	American Honda Motor Co., Inc. established in the United States.
1962	American Depositary Shares (ADSs) began trading on the over-the-counter markets in the United States.
1963	Honda started overseas motorcycle production in Belgium; Honda started Automobile business operations.
1969	Production of mini vehicles N600 and TN600 began in Taiwan.
1970	Honda has had labor contracts with its labor union in Japan since this year.
1972	CIVIC model launched.
1976	ACCORD model launched.
February 11, 1977	American Depositary Shares (ADSs) listed and traded on the New York Stock Exchange (NYSE).
1982	Honda became the first Japanese automaker to begin local automobile production in the United States.
1986	The Acura Brand was established.
December 2015	Deliveries of the HondaJet aircraft began.
April 2016	California Air Resources Board (CARB) published an evaporative emission regulation applicable to outboard engines from the 2018 model year and later.
April 2016	The European Commission implemented regulations regarding Real Driving Emissions (RDE) using Portable Emissions Measurement System (PEMS), with the monitoring phase starting.
September 2017	RDE testing with emission limits started for NOx and PN in Europe.
September 2017	The National Highway Traffic Safety Administration (NHTSA) issued voluntary guidance 'A Vision for Safety' to update the Federal Automated Vehicle Policy.
January 1, 2018	The European Commission's strengthened exhaust emission regulation for non-road small spark-ignition engines (Stage 5) became effective for new certifications.
July 1, 2018	The Agricultural Technology Innovation Engineering Research Center of National Agriculture and Food Research Organization decided to conduct safety inspection of agricultural machinery.
September 2018	Manufacturers must comply with new Federal Motor Vehicle Safety Standard (FMVSS) 141 requirements for 50% of all hybrid and electric vehicles produced from this date.
April 1, 2019	The Operating Executive position was introduced.
September 2019	The new Evaporative Emissions Test started in Europe.
January 2020	New fuel economy standards for passenger motor vehicles for 2030 were announced in Japan.
April 2020	Bharat Stage VI (BS VI) regulations were implemented in India.
September 1, 2020	The EU type-approval came into effect.
December 2020	Japan's Ministry of the Environment (MOE) announced a plan targeting the transition to the electrification of automobiles by around 2030.
January 2021	Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) adopted UN R153 (fuel system integrity), UN R155 (cyber security), UN R156 (software updates), and UN R157 (automated lane keep systems).
June 2021	The NHTSA issued a general order requiring vehicle manufacturers to report accident information (General Order 2021-01).
July 2021	Japan's MLIT revised its rules to establish new technical standards for in-vehicle measurement devices for fuel/energy consumption.
April 2022	The Electrification Business Development Operations was created.
July 2022	The revised General Safety Regulation in Europe has been applied to vehicles from this date.
August 29, 2022	The joint venture agreement with LG Energy Solution, Ltd. for L-H Battery Company, Inc. was entered into.
September 2022	CARB published a final regulation to accelerate the transition of equipment using small off-road engines to zero-emission equipment.
December 2022	India's Ministry of Road Transport and Highways (MoRTH) issued the 25th amendment of the Central Motor Vehicles Rules (CMVR), requiring traction battery approval for electric power train vehicles manufactured from April 1, 2023.
Early 2023	Construction of a new battery plant by the joint venture in the United States began.
April 1, 2023	Bharat Stage VI (BS VI) Stage II-A became effective in India.
April 1, 2023	Honda adopted 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)' with this date of initial application.
April 2023	Japan's MLIT expanded the certified output of shipbuilding businesses to 92 kW.
April 2023	The U.S. Environmental Protection Agency (EPA) announced a proposal for federal multi-pollutant regulation (Tier 4) to apply from 2027 model year vehicles.
April 25, 2023	Regulation (EU) 2023/851 was issued in the EU Official Journal, setting a 100% reduction of EU fleet-wide CO2 targets compared to 2021 from 2035 onwards.
August 2023	The NHTSA proposed Corporate Average Fuel Economy (CAFE) standards for model years from 2027 through 2032.
September 2023	The government of Quebec adopted regulatory amendments to its Zero-Emission Vehicle (ZEV) regulations.
September 29, 2023	Amendment No. 1 to Second Amended and Restated Deposit Agreement was dated.
October 1, 2023	The Company implemented a three-for-one stock split of its common stock.
November 2023	Notification of Intelligent and connected vehicle entry and road traffic pilot business activities was published in China.
December 2023	The federal government adopted a national ZEV mandate from model year 2026 in Canada.
December 2023	The Portable Generator Manufacturers Association (PGMA) revised ANSI/PGMA G300-2018 and approved a new standard, G300-2023.
December 2023	The NHTSA issued a final rule revising FMVSS213 Child restraint systems.
2024	Construction of the new battery plant by the joint venture in the United States was completed.
January 5, 2024	India's MoRTH issued a notification requiring all spark ignition engine vehicles to be certified for compliance with prevailing emission norms using Ethanol (E20) fuel.
February 8, 2024	A share repurchase was resolved at the Board of Directors meeting.
March 20, 2024	The finalization of Tier 4 greenhouse gas (GHG) regulation was announced by the EPA.
April 2024	The final rule on GHG regulation was published in the Federal Register.
April 2024	Honda announced a full-scale study to establish a comprehensive EV value chain in Canada.
May 10, 2024	A share repurchase was resolved at the Board of Directors meeting.
May 13, 2024	The Board of Directors Meeting resolved the dividend payout.
May 2024	The NHTSA issued a new FMVSS that would require all new light vehicles to be equipped with automatic emergency braking (AEB) systems.
May 31, 2024	Inappropriate cases relating to the certification test for four-wheeled vehicles sold in the past were reported to Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
June 2024	Honda launched the CB650R E-Clutch and CBR650R E-Clutch in Japan.
June 6, 2024	The Outdoor Power Equipment Institute (OPEI) published new safety requirements for combustion engine powered rotary lawnmowers and cylinder lawnmowers (ANSI/OPEI 5395-1/-2/-3).
July 2024	Improved Miimo HRM2500 Live and Grass Miimo HRM4000 Live models of robot lawnmowers/grasscutters were launched.
July 25, 2024	The Employee Stock Ownership Plan (ESOP) trust agreement date.
July 26, 2024	Timing of acquisition of shares at the time of the trust period extension.
August 14, 2024	India's MoRTH issued regulations requiring the installation of seat belt reminders on rear seats in M1 category vehicles manufactured on or after April 1, 2025.
September 2024	Honda launched the CB650R E-Clutch and CBR650R E-Clutch in the United States.
October 2024	The latest HondaJet Elite II became the world's first production model twin turbine Very Light Jet equipped with autothrottle.
October 2024	Production of the GX430, a high-end model of the single-cylinder GX series general-purpose engine, commenced.
October 2024	Honda unveiled two electric personal commuter models, the CUV e: and ICON e:, in Indonesia.
October 2024	Honda began sales in Japan of a new commercial-use mini-EV, the N-VAN e:.
October 2024	Inspection of on-board diagnostics (OBD) will be required from this date for inspections of vehicles with electronic control devices.
November 2024	Honda unveiled two electric personal commuters, ACTIVA e: and QC1, in India.
November 2024	Honda unveiled two electric motorcycle concept models, the EV Fun Concept and the EV Urban Concept, at EICMA 2024 in Milan, Italy.
November 2024	Honda unveiled the demonstration production line for all-solid-state batteries.
November 6, 2024	A share repurchase was resolved at the Board of Directors meeting.
November 19, 2024	The EPA finalized revisions to exempt Phenol, Isopropylated Phosphate (PIP) (3:1) and products containing it for use in circuit boards and wire harnesses from prohibition.
November 2024	The European Commission published proposals to revise eco-design requirements for external power supplies, wireless chargers, and general-use portable battery chargers.
November 2024	New Fuel consumption limits for passenger cars were issued in China.
December 2024	A share repurchase was resolved at the Board of Directors meeting.
December 2024	The NHTSA issued a final rule that amends time series data requirements of 49 CFR Part 563 EDR (Event Data Recorders).
December 2024	The European Commission adopted Regulation (EU) 2024/2847 (Cyber Resilience Act).
December 22, 2023	The EU Data Act (EU) 2023/2854 was finalized and published in the EU Official Journal.
January 2025	The AM Radio for Every Vehicle Act of 2025, a bill requiring AM radio capability in new passenger vehicles, was introduced in the House of Representatives.
January 2025	The NHTSA issued a final rule FMVSS307 Fuel system integrity of Hydrogen vehicles and FMVSS308 Compressed hydrogen storage system integrity.
January 2025	The NHTSA issued a final rule to revise FMVSS101 Controls and displays and FMVSS208 Occupant crash protection.
January 2025	The first flight was conducted using the flight simulator in the Advanced Systems Integration Test Facility (ASITF).
January 2025	The PGMA G300-2023 standard became effective.
January 2025	The European Commission published an Official Journal Decision to introduce harmonized standards that address the cybersecurity requirements under the Radio Equipment Directive.
February 2025	Honda officially began production of the first HondaJet Echelon test unit.
February 2025	Honda and GoCimo commenced a battery sharing service verification test in Malmö, Sweden.
February 2025	Honda made its first global release of specifications for Honda Next Generation Fuel Cell Module and Honda Fuel Cell Power Generator.
February 24, 2025	A revision to India's Battery Waste Management Rules decided that the Extended Producer Responsibility (EPR) number can also be displayed in the form of a QR code.
March 2025	The Agricultural Technology Innovation Engineering Research Center of National Agriculture and Food Research Organization issued a revision to the scope of agricultural machinery subject to safety inspections.
March 31, 2025	End of the fiscal year for this annual report.
April 1, 2025	New agricultural machinery standards came into effect in Japan.
April 1, 2025	India's MoRTH regulations requiring seat belt reminders on rear seats in M1 category vehicles manufactured on or after this date.
May 2025	Honda announced its decision to postpone the comprehensive EV value chain project in Canada by approximately two years.
June 18, 2025	Date of the Annual Report on Form 20-F filing.
June 19, 2025	Ordinary General Meeting of Shareholders to be held, with proposed election of twelve Directors.
June 5, 2025	Effective date for the year-end dividend for FY2025.
April 1, 2026	The Japanese statutory income tax rate will change to approximately 31% for fiscal years beginning on and after this date.
2026	Production equipment in Ohio plants is planned to start operation for EV production.
2026	Mass production of the Honda Fuel Cell Power Generator is scheduled to begin.
2026	Honda 0 Series (Saloon and SUV) will be introduced to global markets starting this year.
July 2026	Vietnam's Ministry of Transport announced that Level 4 (Euro 4) for motorcycles will commence.
September 1, 2026	Front seat requirement for the seatbelt reminder system in the US will be subject to this date.
December 5, 2026	FMVSS213b for child restraint systems will become mandatory for applicable products manufactured on or after this date.
January 2027	European Commission Regulation (EU) 2023/1230 on machinery safety will be applicable.
September 1, 2027	Effective date for NHTSA's final rule amending Event Data Recorders (EDR) time series data requirements.
2027	Mass production of the Honda Next Generation Fuel Cell Module is scheduled to begin (fiscal year ending March 31, 2028).
July 2028	The Malaysian government decided to introduce Euro 5 regulations for new motorcycle models from this date.
September 1, 2028	Applicable date for FMVSS307 (Fuel system integrity of Hydrogen vehicles) and FMVSS308 (Compressed hydrogen storage system integrity).
September 1, 2029	Mandatory compliance for Automatic Emergency Braking (AEB) systems for new light vehicles in the US.
January 2030	The Malaysian government decided to introduce Euro 5 regulations for all motorcycle models from this date.
2030s	Honda is striving to realize carbon neutrality for all of its motorcycle products during this decade.
2030	Honda aims to halve the number of global traffic collision fatalities involving Honda motorcycles and automobiles worldwide by this year.
March 31, 2031	Target for company-wide Return on Invested Capital (ROIC) of 10%.
2035	New Zero-Emission Vehicle (ZEV) requirements will require all new light-duty vehicles sold in California to be zero-emission by this year.
2035	Japan's Ministry of Economy, Trade and Industry (METI) announced their target that 100% of new passenger vehicle sales would be made up of electric vehicles by this year.
January 1, 2040	The broadest prohibition on products intentionally added Perfluoroalkyl and polyfluoroalkyl substances (PFAS) in California is set to take effect by this date.
2040	Honda plans to increase the ratio of EV and FCEV sales to 100% globally by this year.
2050	Honda aims to achieve zero traffic collision fatalities involving Honda motorcycles and automobiles worldwide by this year.
2050	Honda's vision of net zero CO2 emissions, 100% utilization of carbon-free energy, and 100% use of sustainable materials.

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Keywords

Automotive, Motorcycle, Power Products, Financial Services, Electric Vehicles, EV, FCEV, Hybrid Electric Vehicles, HEV, ADAS, Automated Driving, Carbon Neutrality, Sustainability, Supply Chain, Geopolitical Risk, Product Warranty, Research and Development, Japan, North America, Asia, SEC Filing, Annual Report, 20-F, Corporate Governance, Shareholder Returns, Capital Expenditures, Financial Performance, Dividend Policy

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