Honda consolidates moto, parts products ops under single entity in PH

MANILA: Honda’s motorcycle and parts production arm in the Philippines have been consolidated under one entity.

In a statement, Honda Philippines Incorporated (HPI) announced that the Securities and Exchange Commission (SEC) approved the unification with Honda Parts Manufacturing Corporation (HPMC) last February 11 after they filed the merger documents in July 2025. 

The consolidation will take effect on April 1 — with HPI being the surviving entity.

Per HPI, the move strengthens Honda’s operational foundation in the country by streamlining manufacturing and parts production.

“This merger is an important step in building a stronger Honda organization in the Philippines. By unifying our manufacturing and parts operations, we are strengthening our ability to operate more efficiently while continuing to contribute to Philippine society,” HPI President Takeshi Kobayashi was quoted as saying. 

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The company assured stakeholders that the transition will not result in workforce reductions and that all regular employees will remain with the organization.

Strategic consolidation

The integration is eyed to bring together Honda’s vehicle assembly and parts manufacturing to improve operational efficiency, enhance manufacturing flexibility, and respond more effectively to growing demand for motorcycles and power products.

HPI added that the move reinforces the marque’s presence in the Philippines as well as strengthens its collaboration with local suppliers, partners, and institutions.

“With a more streamlined organizational structure, Honda is positioned to maintain the quality, reliability, and consistency expected by its customers and stakeholders,” the company said.

The local merger follows broader organizational and operational adjustments announced by Honda’s parent company, which will also take effect April 1.

This global announcement came after Honda projected a significant profit decline for fiscal year 2026. Based on its forecast, earnings could drop by as much as 60 percent for the April 2025–March 2026 period.

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