Strengthening Research and Development Capabilities and Next-Generation Technologies

「Effective 1 April 2026, the Company changed the organisational operating structure of the Four-Wheel Development Operations and Four-Wheel Business Operations so that, as the global business environment changes faster than expected, it can more accurately capture market and technology trends and bring its proprietary technologies and new value to market at the optimal time. The R&D functions of the Four-Wheel Development Operations and the SDV Business Development Division within the Four-Wheel Business Operations were transferred to Honda R&D Co., Ltd. The business functions of the SDV Business Development Division were also reorganised into the Business Strategy Division, and the SDV Business Development Division was dissolved as part of the reorganisation.」

「四輪の研究開発機能について、当社の量産開発と株式会社本田技術研究所の将来研究が分離した運営体制から、技術テーマの選定・商品投入に至るまでを一体で捉え、一気通貫で推進する体制へと移行するため、当社の四輪開発およびSDV開発機能を株式会社本田技術研究所へ移管することに至りました。」

「During the interim consolidated accounting period, R&D expenditures of the Company and its consolidated subsidiaries and R&D expenses recorded in the condensed interim consolidated income statement amounted to ¥483.2 billion and ¥584.2 billion, respectively. There were no material changes in the status of R&D activities of the Company and its consolidated subsidiaries during the interim consolidated accounting period.」

「In next-generation technology, the Company constructed a pilot line for all-solid-state batteries, which it has been independently developing toward mass production, on the premises of Honda R&D Co., Ltd. (Tochigi Sakura) in Sakura, Tochigi Prefecture, and unveiled it for the first time in November 2024.」

「During the interim consolidated accounting period, R&D expenditures of the Company and its consolidated subsidiaries and R&D expenses recorded in the condensed interim consolidated income statement amounted to ¥516.8 billion and ¥478.5 billion, respectively. There were no material changes in the status of R&D activities of the Company and its consolidated subsidiaries during the interim consolidated accounting period.」

「To further strengthen and accelerate its electrification business, the Company established the Electrification Business Development Operations based on the Business Development Operations launched in April 2022 to strengthen the electrification business. … R&D expenditures incurred during the consolidated fiscal year amounted to ¥976.3 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥651.2 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥631.3 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year were as follows. To further strengthen and accelerate the electrification business, we established the Electrification Business Development Division based on the Business Development Division launched in April 2022 to strengthen the electrification business. This division consolidates business strategy functions related to the four-wheel business, EV product development functions, and strategy and development functions for electrification in the motorcycle and power products businesses, with the aim of achieving “further acceleration of the electrification business” and “new value creation” through the expansion of mobility.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥408.2 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥404.1 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year were as follows. To further strengthen and accelerate the electrification business, we established the Electrification Business Development Division based on the Business Development Division launched in April 2022 to strengthen the electrification business.」

「To further strengthen and accelerate the electrification business, we established the Electrification Business Development Division based on the Business Development Division launched in April 2022 to strengthen the electrification business. This division consolidates business strategy functions related to the four-wheel business, EV product development functions, and strategy and development functions for electrification in the motorcycle and power products businesses, with the aim of achieving “further acceleration of the electrification business” and “new value creation” through the expansion of mobility.」

「To strengthen the creation of new value by integrating hardware with software and services, we established the Business Development Division, consolidating business development functions and core software and electrification technologies. By bringing these together in a single organizational structure independent of the conventional product-based business divisions for motorcycles, automobiles and power products, we will increase agility, integrate technologies and businesses across products, and strengthen synergies. R&D expenditure incurred during the current consolidated fiscal year was ¥852.0 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥588.8 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥601.9 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year were as follows. To strengthen the creation of new value by integrating hardware with software and services, we established the Business Development Division, consolidating business development functions and core software and electrification technologies. By bringing these together in a single organizational structure independent of the conventional product-based business divisions for motorcycles, automobiles and power products, we will increase agility, integrate technologies and businesses across products, and strengthen synergies.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥371.4 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥381.1 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year were as follows. To strengthen the creation of new value by integrating hardware with software and services, we established the Business Development Division, consolidating business development functions and core software and electrification technologies. By bringing these together in a single organizational structure independent of the conventional product-based business divisions for motorcycles, automobiles and power products, we will increase agility, integrate technologies and businesses across products, and strengthen synergies.」

「To strengthen the creation of new value by integrating hardware with software and services, we established the Business Development Division, consolidating business development functions and core software and electrification technologies. By bringing these together in a single organizational structure independent of the conventional product-based business divisions for motorcycles, automobiles and power products, we will increase agility, integrate technologies and businesses across products, and strengthen synergies.」

「The Company’s U.S. subsidiary, American Honda Motor Co., Inc., reorganized its four-wheel production-related companies in the United States and its four-wheel development functions effective 1 April 2021. As a result, Honda R&D Americas, Inc. and Honda Engineering North America, Inc. were integrated into Honda Development & Manufacturing of America, LLC. …R&D expenditure incurred during the current consolidated fiscal year was ¥804.0 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥568.7 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥563.3 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year were as follows. American Honda Motor Co., Inc., the Company’s U.S. subsidiary, reorganized its four-wheel production-related companies in the United States and its four-wheel development functions effective 1 April 2021. As a result, Honda R&D Americas, Inc. and Honda Engineering North America, Inc. were integrated into Honda Development & Manufacturing of America, LLC. In the motorcycle business, the PSP development functions of Honda of South Carolina Mfg., Inc., which is responsible for producing power sports products such as ATVs and Side-by-Sides, and Honda R&D Americas, Inc. were integrated into the PSP division of American Honda Motor Co., Inc.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥365.7 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥358.6 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year were as follows. American Honda Motor Co., Inc., the Company’s U.S. subsidiary, reorganized its four-wheel production-related companies in the United States and its four-wheel development functions effective 1 April 2021. As a result, Honda R&D Americas, Inc. and Honda Engineering North America, Inc. were integrated into Honda Development & Manufacturing of America, LLC. In the motorcycle business, the PSP development functions of Honda of South Carolina Mfg., Inc., which is responsible for producing power sports products such as ATVs and Side-by-Sides, and Honda R&D Americas, Inc. were integrated into the PSP division of American Honda Motor Co., Inc.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year was ¥180.6 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥177.2 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year were as follows. American Honda Motor Co., Inc., the Company’s U.S. subsidiary, reorganized its four-wheel production-related companies in the United States and its four-wheel development functions effective 1 April 2021.」

「In addition, Honda R&D Co., Ltd. established the Advanced Power Unit and Energy Research Institute and a Design Center. By integrating R&D functions for advanced power unit and energy technologies for motorcycles, automobiles, power products and aircraft, the Advanced Power Unit and Energy Research Institute aims to maximize Honda’s strengths across a broad range of products and technologies in the power unit field, a source of Honda’s competitiveness, and enhance product value for the future.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥544.2 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥500.9 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year were as follows. We integrated the four-wheel product development functions of the Company and Honda R&D Co., Ltd., excluding certain functions such as design, and merged Honda Engineering Co., Ltd. We established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently. In addition, Honda R&D Co., Ltd. established the Advanced Power Unit and Energy Research Institute and a Design Center.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥356.0 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥329.1 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year were as follows. We integrated the four-wheel product development functions of the Company and Honda R&D Co., Ltd., excluding certain functions such as design, and merged Honda Engineering Co., Ltd. We established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently. In addition, Honda R&D Co., Ltd. established the Advanced Power Unit and Energy Research Institute and a Design Center.」

「We integrated the four-wheel product development functions of the Company and Honda R&D Co., Ltd., excluding certain functions such as design, and merged Honda Engineering Co., Ltd. We established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently. In addition, Honda R&D Co., Ltd. established the Advanced Power Unit and Energy Research Institute and a Design Center.」

「R&D expenditure incurred during the current consolidated fiscal year was ¥821.4 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥580.6 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥579.9 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year were as follows. We integrated the motorcycle development divisions of the Company and Honda R&D Co., Ltd. and established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥375.5 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥345.2 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year were as follows. We integrated the motorcycle development divisions of the Company and Honda R&D Co., Ltd. and established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year was ¥184.2 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥169.8 billion. The changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year were as follows. We integrated the motorcycle development divisions of the Company and Honda R&D Co., Ltd. and established a structure in which the sales, production, development and procurement divisions work closely together across the processes from planning and conceptualization of new models through development, production launch and mass production, rather than operating independently.」

「As advances in digital technologies such as AI and big data in recent years have expanded the potential for creating new value, we regard this as an opportunity and will actively promote open innovation through strategic alliances with external companies and others, focusing on R&D in further new fields. …R&D expenditure incurred during the current consolidated fiscal year was ¥820.0 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥582.9 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥575.4 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥380.0 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥374.6 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year was ¥185.6 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥190.3 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year.」

「R&D expenditure incurred during the current consolidated fiscal year was ¥730.7 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥514.7 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥532.8 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥331.4 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥346.2 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year was ¥164.0 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥174.2 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year.」

「We define “mobility” and “living” as our fields and will pursue the creation of new value by combining the manufacturing strengths we have developed to date with advances in digital technologies represented by AI and big data, in order to meet our customers’ increasingly diverse expectations. In addition to strengthening our product development structure to highlight our identity, we will incorporate open innovation with other companies and research institutions to create an R&D structure for “making products and experiences” that can provide the value of experiences alongside products. R&D expenditure incurred during the current consolidated fiscal year was ¥659.9 billion.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year was ¥448.3 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥469.2 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first nine months of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first half of the current fiscal year was ¥282.5 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥292.9 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first half of the current fiscal year.」

「R&D expenditure by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year was ¥159.6 billion, while R&D expenses recognized in the condensed quarterly consolidated income statement totaled ¥165.5 billion. There were no material changes in the status of R&D activities by the Company and its consolidated subsidiaries during the first quarter of the current fiscal year.」

「We will continue to further strengthen our ability to create advanced technologies and products, create new value tailored to market needs around the world, and bring products to market rapidly. In addition to improving product safety and environmental performance, we will actively promote the full-scale adoption of electrification technologies. We will also further advance research and development in next-generation technologies.」