Improvement of the earnings structure for automobile business:
The amount of fixed costs for FY2023 (fiscal year ended March 31, 2023) was reduced by more than 10% compared to FY2019. The break-even point for FY2023 based on the percentage of production capacity utilization was roughly 80%, an improvement from roughly 90% in FY2019. Honda will strive to make a continuous recovery in sales and achieve a return on sales (ROS) of 7%, which has been Honda’s FY2026 company-wide management target.
Stable procurement of semiconductors:
From a medium- to long-term perspective, Honda has been building cooperative relationships with semiconductor manufacturers, including the strategic collaboration with Taiwan Semiconductor Manufacturing Company Limited (TSMC).
Initiatives in battery-related areas:
Toward the achievement of its goal to increase the ratio of EV and FCEV sales to 100% globally by 2040, Honda will continue working on the procurement and development of batteries, as well as securing stable procurement of battery materials by building strong partnerships with resource recycling businesses.
EV introduction plans:
In North America, a mid- to large-size EV model based on Honda’s original dedicated EV platform will go on sale in 2025. In Japan, an EV model based on the N-ONE will go on sale in 2025, and two small-size EV models, including a SUV type, will go on sale in 2026.
Strengthening of software-related areas:
Honda will double the originally planned number of new hires in software-related areas. Honda newly created the Global User Experience (UX) Officer position.
New value creation:
Honda has secured an annual budget at the 100 billion yen level for research into next-generation mobility as well as for fundamental research activities. Honda Innovations Co., Ltd. was newly established this month in Japan to strengthen open innovation with startups.
00:00 – Highlights
03:26 – Micro Chips
04:19 – Electric Motorcycles
05:18 – EV Advancement
08:09 – Batteries and Solid State
10:43 – Material procurement
11:43 – US Manufacturing shakeup
15:10 – Honda OS
17:41 – Affordable EVs
19:22 – New Value
20:52 – New Slogan
22:19 – My Final Take