Honda 2014 Annual Report Download - page 35

Other Regions
In Other Regions, revenue increased by ¥129.0 billion, or 14.4%, to ¥1,025.5 billion
from the previous fiscal year, due mainly to an increase in revenue in Motorcycle busi-
ness and positive foreign currency translation effects. Operating income increased by
¥9.2 billion, or 25.8%, to ¥44.9 billion from the previous fiscal year, due mainly to an
increase in income attributable to increased net sales and model mix, which was
partially offset by increased selling, general and administrative expenses.
Research and Development
Honda and its consolidated subsidiaries use the most-advanced technologies and
conduct R&D activities with the goal of creating distinctive products that are inter-
nationally competitive. To attain this goal, the Honda’s main R&D divisions operate
independently as subsidiaries, allowing engineers to pursue their tasks with signifi-
cant freedom. Product-related R&D is spearheaded by Honda R&D Co., Ltd. in
Japan; Honda R&D Americas, Inc. in the United States; and Honda R&D Asia
Pacific Co., Ltd. in Thailand. R&D on production technologies centers around
Honda Engineering Co., Ltd. in Japan and Honda Engineering North America, Inc.
in the United States. All of these entities work in close association with our other
entities and businesses in their respective regions.
Total consolidated R&D expenses amounted to ¥634.1 billion in the fiscal year
ended March 31, 2014.
Motorcycle Business
In the motorcycle business segment, Honda is aiming to deliver appealing prod-
ucts in a timely manner that offer outstanding environmental performance and that
will enable customers to experience the joy of ownership. To this end, we priori-
tized initiatives designed to bolster product appeal, strengthen cost competitive-
ness, quicken the pace of product and technology development, and respond to
the demands of a low-carbon society.
Among major technological achievements, the CTX1300, CBR650F and
CB650F models were launched globally. The CTX1300 is the new flagship model
of the CTX series with “Comfort Technology Experience” as its development con-
cept. The CBR and CB models were equipped with a newly developed DOHC
parallel four cylinder 650cc water-cooled four-stroke engine.
In Japan, the CBR400R, CB400F and 400X sports models equipped with a
newly developed DOHC parallel twin-cylinder 400cc water-cooled four-stroke
engine were launched. In addition, a new-model DUNK scooter equipped with a
newly developed OHC single-cylinder 50cc water-cooled four-stroke “eSP” engine
was also introduced.
R&D expenses in this segment amounted to ¥73.0 billion in the year ended
March 31, 2014.
In terms of major race results, Honda won the rider, constructor and team
divisions to become a triple crown champion in MotoGP-class motorcycle racing.
Automobile Business
In the automobile business segment, Honda’s aim is to become the premier man-
ufacturer of interesting, cleverly designed cars that enable customers to experi-
ence the joy of driving. The overall strategic direction is to develop “great products
speedily, at affordable prices and with low CO2 emissions.”
Among major technological achievements in the automobile business segment,
Honda developed and launched the all new N-WGN and N-WGN Custom models
equipped with safety enhancements, including six airbags and a system that pre-
vents the car from drifting sideways in reaction to abrupt turns of the steering
wheel. In addition, Honda enhanced fuel economy by developing a new light-
weight and compact hybrid system that can operate on one motor in electric
vehicle (EV) mode. It was initially installed in the Fit Hybrid and the new VEZEL
Hybrid models.
Moreover, a hybrid system combining a two-motor electric mode CVT pow-
ertrain with lithium ion batteries was developed for installation in the Accord Hybrid
and Accord Plug-in Hybrid models. The capacity of the lithium ion battery was
enlarged for the plug-in hybrid model to enable it to operate entirely in EV mode in
most daily driving situations. As a result, a balance between nimble acceleration
and fuel economy, which is characteristic of EVs, was realized in these two models.
Furthermore, a new hybrid system combining a three-motor electric mode and V6
engine with direct fuel injection to realize both superb acceleration performance and
fuel economy was developed. This proprietary system with two motors mounted in
the back is capable of independently controlling the torque to the left and right rear
wheels, and will be installed in models to be launched in the near future.
As for other technological achievements, an omnidirectional safety system to
assist drivers in avoiding accidents was developed. This system utilizes a micro-
wave radar and a set of cameras to monitor the surroundings of a vehicle, and
automatically provides braking and steering assistance to help the driver take
evasive action.
R&D expenses in this segment amounted to ¥531.4 billion in the year ended
March 31, 2014.
Yen (billions) (%)
R&D Expenses and
R&D Expenses as a
Percentage of Net Sales
Fiscal years ended March 31
R&D Expenses (left scale)
R&D Expenses as a Percentage
of Net Sales (right scale)
250
500
750
0
3
6
9
0
10 11 12 13 14
Honda Motor Co., Ltd. Annual Report 2014 34
6 Financial Section
1 The Power of Dreams
2 Financial Highlights
3 To Our Shareholders
4 Review of Operations
5 Corporate Governance
7
Investor Relations
Information
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