Newly-merged Honda Philippines, Inc. (HPI) is accelerating its manufacturing push, unveiling a major expansion in motorcycle engine components as it doubles down on its long-term commitment to the Philippine market.
The move comes after the Securities and Exchange Commission approved HPI’s merger with Honda Parts Manufacturing Corporation (HPMC), with HPI as the surviving entity. The unified structure takes effect April 1. The company will retain the HPI name, remain 99.88 percent owned by Honda Motor Co., Ltd., and continue under President Takeshi Kobayashi.
Central to the post-merger strategy is a sharp increase in motorcycle engine component capacity. Honda will add 545,000 units annually, lifting planned capacity to 646,000 units a year from the current 101,000. The expansion underscores confidence in rising domestic demand and reflects a tighter integration of vehicle assembly and parts production.
Four-wheel M-CVT gear production will also continue, with annual output steady at 198,000 units. The company confirmed ongoing production and export of the component but declined to provide detailed forward guidance.
Honda’s reassurance extends beyond output. The company, which logged 1,044,510 motorcycle sales in 2025, emphasized that Philippine operations remain central to its regional strategy. It also pushed back against speculation of downsizing or shutdowns in four-wheel parts manufacturing, stressing that operations are ongoing and responsive to market conditions.
Importantly, Honda framed the merger as a strategic consolidation—not a cost-cutting exercise. All existing employees will be retained, with no layoffs planned. HPMC associates will transition under new employment contracts prior to the merger’s effectivity date.
Customers and suppliers are expected to see continuity rather than disruption. Honda said integrated manufacturing, procurement, and quality governance systems will deliver more timely supply, competitive pricing, and tighter cost control.
With motorcycle production capacity already at about 880,000 units annually, the engine component expansion signals not contraction but conviction. As consolidation takes hold, Honda is positioning for sustained growth—strengthening manufacturing flexibility while reinforcing its leadership in one of Southeast Asia’s most dynamic two-wheel markets.
