Honda Motor Company, Ltd.

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A 2022 Honda Civic.

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Honda Motor Company, Ltd. is a leading Japanese manufacturer of motorcycles and a major producer of automobiles for the world market. The company’s headquarters are in Tokyo. Since 1959 it has been the top-selling motorcycle company in the world.

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A 1977 Honda CB750 motorcycle.

© Massimiliano Clari/Dreamstime.com

The engineer Honda Soichiro founded the Honda Technical Research Institute near Hamamatsu in 1946 to develop small, efficient internal-combustion engines. It was incorporated as Honda Motor Company in 1948 and began producing motorcycles in 1949. The Honda C-100, a small-engine motorcycle, was introduced in 1953. In 1959 the company established a U.S. subsidiary, American Honda Motor Company, which began producing motorcycles in the United States in 1979 and automobiles in 1982. In 1969 Honda introduced the popular CB750, the first “superbike,” which had a 750-cc engine, disc brakes, and an electric starter.

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The 10 millionth Honda vehicle made in North America rolls off the Marysville, Ohio, assembly line on April 10, 2001.

Honda

Although Honda is the world leader in producing motorcycles, the bulk of the company’s annual sales comes from automobiles, which the company began manufacturing in 1963. Its first cars were the T360 small truck and the S500 sports car. Among its lightweight, fuel-efficient passenger cars have been the popular Civic (1972– ) and Accord (1976– ) models. Honda has played a pivotal role in the SUV market, with models such as the CR-V (1995– ) ranking among the best-selling vehicles in its class. The company also ventured into trucks with the Ridgeline (2005– ), notable for its innovative unibody construction, a rarity among pickups.

Honda also launched Acura in 1986, establishing the first luxury division of a Japanese automaker. The company’s other major product areas include farm machinery, small engines, and power equipment. Honda is a major Japanese exporter to the United States and other parts of the world. It operates assembly plants in numerous other countries and is engaged in joint ventures and technology-licensing agreements with several foreign companies.

In the 21st century, Honda has focused on developing cleaner energy technologies and vehicles aimed at reducing environmental impact. It launched hybrid and electric vehicles such as the Honda Insight, Accord Hybrid, and CR-V Hybrid to address the growing demand for fuel-efficient transportation. In 2016, Honda also introduced the Clarity Fuel Cell, a hydrogen-powered vehicle.

In 2024, Honda and Nissan Motor Co., Ltd. explored a potential collaboration to share components for electric vehicles, including batteries, and to jointly develop autonomous driving software. By December 2024, the companies announced their intention to form a joint holding company with Mitsubishi Motors Corp. to enhance their competitiveness in electric vehicle and artificial intelligence (AI) development.

In February 2025, Honda and Nissan called off the proposed merger, citing differences in strategy. Although initial talks centered on creating a joint holding company, Honda later pushed to make Nissan its subsidiary after gaining deeper insight into Nissan’s financial health. Nissan’s leadership rejected the proposal, believing it undervalued the company and threatened its autonomy. Honda also expressed concern that a joint entity would be too slow to respond to rapid technological changes within the industry. As a result, Honda decided to focus on advancing its own electrification efforts while continuing to collaborate with Nissan on select projects.

In May 2026, Honda reported its first annual loss since listing its shares on the Tokyo Stock Exchange in 1957. The company canceled plans for several electric vehicle models in the United States, suspended a planned Canadian EV and battery manufacturing project, and abandoned a 2021 goal of making all Honda vehicles electric or fuel-cell powered by 2040. Honda cited slowing EV demand, heavy competition in China, and broader market uncertainty, while shifting greater emphasis toward hybrid vehicles.