Honda Motor SWOT and PESTLE Analysis
ID : 52160353| Feb 2023| 17 pages
COMPANY PROFILE -Honda Motor
Business Sector :Automobiles
Operating Geography :Asia, Japan, Global
About Honda Motor :
Honda Motor Co. is one of the largest manufacturers of automobiles and motorcycles globally. Established in 1948, the company has its headquarters located in Tokyo, Japan. The company’s business can be divided into the segments of Automobile, Motorcycle, Financial Services, Power Product and Other Businesses. In the Automobile segment, it produces passenger cars, light trucks, and mini vehicles. The company also provides financial services like retail lending and leasing services and wholesale financing to dealers as a part of its Financial Services. For its Power Product and Other Businesses segment, the company sells power products comprising general purpose engines, portable battery inverter power sources, lawn mowers, riding mowers, snow blowers, outboard marine engines and more. The most significant product of this segment is its HondaJet, a cheaper alternative to private flying. The company’s assembly plants are located all over the globe in China, the United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New Zealand, Malaysia, Indonesia, India, Philippines, Thailand, Vietnam, Turkey, Taiwan, Perú and Argentina. As of early 2023, Honda Motor employed more than 2,00,000 people.
The USP of Honda Motors lies in it being one of the biggest automobiles in Asia. Honda Motor’s Vision is to “Serve people worldwide with the “joy of expanding their life’s potential””. The company’s USP is that it is the world's largest manufacturer of internal combustion engines.
Honda Motor Revenue :
$127.74 billion - FY ended March 31st, 2022 (year-on-year growth of 3.96%)
$122.87 billion - FY ended March 31st, 2021
Competitive Analysis of Honda Motor
SWOT
PESTLE
The SWOT Analysis of Honda Motor is presented below:
| 1. Global presence in terms of employees, manufacturing units and markets 2. World’s top motorcycle brand & leading Car manufacturer 3. Huge Focus on Research & Development leading to innovative products 4. Diversified product portfolio providing synergies 5. High Brand Equity resulting in higher brand recall and sales | 1. Recall of cars due to Takata airbag inflators impacting Brand and sales 2. Over reliance on North American Sales can hurt as that market is saturated 3. Slash production plans by up to 40 percent in Japan due to persistent supply chain and logistical issues. |
| 1. Electric and Hybrid Cars - the next big segment 2. Huge potential for sales in the developing markets 3. Global automotive Industry growing at a steady rate 4. Self-driving market is experiencing a boom | 1. Intense Competition can threaten to decrease sales and profitability 2. Increase in use of public transport modes by people 3. Increasing Fuel Prices can hurt vehicular sales 4. Environmental and global regulations by Governments 5. Facing Large Recall Due to Faulty Pedals 6. Price hike from January 2023 |
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Detailed SWOT Analysis of Honda Motor
Strength
1. Global Presence in terms of employees, manufacturing units and markets: Honda motors employ over 210,000 people globally. With sales of 4.7 million cars, 17 million motorcycles and 6 million power products, Honda truly transcends boundaries. It has a huge presence in Japan, North America, Europe and Asia.
2. World’s top motorcycle and leading car manufacturer: Honda is the largest motorcycle manufacturer in the world by volume, the largest internal combustion engine make with 14 million engines per year, and the 8th largest automaker in the world. Thus, Honda is a leading brand, and is a market leader in many countries.
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Weakness
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Opportunity
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Threat
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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References used in Honda Motor SWOT & PESTLE Analysis Report
1. Annual Report - https://global.honda/sustainability/integratedreport/
2. Website - https://www.honda2wheelersindia.com/
3. Japan Self-driving Car Market to Witness Healthy CAGR of 15.6% by 2032, Size, Share, Trends, Opportunities, Key Growth Drivers and Future Outlook - https://www.digitaljournal.com/pr/japan-self-driving-car-market-to-witness-healthy-cagr-of-15-6-by-2032-size-share-trends-opportunities-key-growth-drivers-and-future-outlook
4. Honda to hike vehicle prices by up to Rs 30,000 from January - https://economictimes.indiatimes.com/industry/auto/cars-uvs/honda-to-hike-vehicle-prices-by-up-to-rs-30000-from-january/articleshow/96271009.cms
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Honda Motor SWOT and PESTLE Analysis
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