Property, Plant and Equipment

12 Months Ended

Mar. 31, 2026

(11) Equipment on Operating Leases

Equipment on operating leases are mainly vehicles.

The changes in cost, accumulated depreciation and impairment losses, and the carrying amounts of equipment on operating leases for the years ended March 31, 2025 and 2026 are as follows:

(Cost)


	Yen (millions)
Balance as of April 1, 2024	¥	6,678,707

Additions	¥	3,134,025
Sales or disposal		(2,608,962	)
Exchange differences on translating foreign operations		(112,651	)
Other		—

Balance as of March 31, 2025	¥	7,091,119

Additions	¥	2,764,248
Sales or disposal		(2,211,986	)
Exchange differences on translating foreign operations		436,078
Other		—

Balance as of March 31, 2026	¥	8,079,459

(Accumulated depreciation and impairment losses)


	Yen (millions)
Balance as of April 1, 2024	¥	(1,475,939	)

Depreciation	¥	(876,860	)
Sales or disposal		1,020,755
Exchange differences on translating foreign operations		21,499
Other		(32,387	)

Balance as of March 31, 2025	¥	(1,342,932	)

Depreciation	¥	(954,102	)
Sales or disposal		815,485
Exchange differences on translating foreign operations		(78,931	)
Other*		(85,186	)

Balance as of March 31, 2026	¥	(1,645,666	)

Explanatory note:

*	Other for the year ended March 31, 2026 includes impairment losses on leased electric vehicles, mainly due to declines in estimated end of term residual values.

(Carrying amount)


	Yen (millions)
Balance as of March 31, 2025	¥	5,748,187
Balance as of March 31, 2026		6,433,793

(Future lease payments)

Future lease payments expected to be received under the operating leases by maturity as of March 31, 2025 and 2026 consist of the following:


	Yen (millions)
	2025		2026
Within 1 year	¥	966,028	¥	1,071,460
Between 1 and 2 years		741,093		771,480
Between 2 and 3 years		364,347		369,762
Between 3 and 4 years		114,240		115,901
Between 4 and 5 years		32,341		34,209
Later than 5 years		12,540		12,061

Total	¥	2,230,589	¥	2,374,873

Future lease payments expected to be received as shown above should not necessarily be considered indicative of future cash collections.

(Lease income)

Operating leases income for the years ended March 31, 2025 and 2026 are ¥1,256,945 million and ¥1,383,758 million, respectively.

Property, plant and equipment [member]

Statement [LineItems]

Property, Plant and Equipment

(12) Property, Plant and Equipment

The changes in cost, accumulated depreciation and impairment losses, and the carrying amounts of property, plant and equipment for the years ended March 31, 2025 and 2026 are as follows:

(Cost)


	Yen (millions)
	Land			Buildings and structures			Machinery and equipment			Construction in progress			Total
Balance as of April 1, 2024	¥	674,562		¥	2,954,398		¥	7,156,049		¥	219,879		¥	11,004,888

Additions		14,867			36,761			98,025			463,013			612,666
Reclassification		3,336			84,185			292,186			(379,707	)		—
Sales or disposal		(9,128	)		(39,708	)		(295,604	)		—			(344,440	)
Exchange differences on translating foreign operations		(2,385	)		(26,961	)		(117,006	)		(5,476	)		(151,828	)
Other		6			(3,179	)		(2,949	)		(2,128	)		(8,250	)

Balance as of March 31, 2025	¥	681,258		¥	3,005,496		¥	7,130,701		¥	295,581		¥	11,113,036

Additions		8,500			44,656			80,698			704,589			838,443
Reclassification		4,372			84,869			239,373			(328,614	)		—
Sales or disposal		(3,414	)		(100,687	)		(356,226	)		(3,173	)		(463,500	)
Transfers to assets held for sale		(16,578	)		(43,796	)		(164,120	)		(1,016	)		(225,510	)
Exchange differences on translating foreign operations		14,813			128,530			405,163			28,978			577,484
Other		154			(916	)		(7,179	)		(4,128	)		(12,069	)

Balance as of March 31, 2026	¥	689,105		¥	3,118,152		¥	7,328,410		¥	692,217		¥	11,827,884

(Accumulated depreciation and impairment losses)


	Yen (millions)
	Land			Buildings and structures			Machinery and equipment			Construction in progress			Total
Balance as of April 1, 2024	¥	(25,442	)	¥	(1,845,450	)	¥	(5,899,182	)	¥	(401	)	¥	(7,770,475	)

Depreciation		(6,399	)		(106,045	)		(419,365	)		—			(531,809	)
Sales or disposal		3,372			34,386			263,760			—			301,518
Exchange differences on translating foreign operations		44			15,566			95,475			—			111,085
Other		(355	)		(2,909	)		(10,132	)		(38	)		(13,434	)

Balance as of March 31, 2025	¥	(28,780	)	¥	(1,904,452	)	¥	(5,969,444	)	¥	(439	)	¥	(7,903,115	)

Depreciation		(6,988	)		(108,060	)		(372,605	)		—			(487,653	)
Impairment losses...		(291	)		(530	)		(27,463	)		(373,838	)		(402,122	)
Sales or disposal		1,365			95,110			322,206			—			418,681
Transfers to assets held for sale		1,447			30,728			146,497			—			178,672
Exchange differences on translating foreign operations		(473	)		(80,152	)		(348,101	)		(7,107	)		(435,833	)
Other		(211	)		244			(201	)		36			(132	)

Balance as of March 31, 2026	¥	(33,931	)	¥	(1,967,112	)	¥	(6,249,111	)	¥	(381,348	)	¥	(8,631,502	)

(Carrying amount)


	Yen (millions)
	Land		Buildings and structures		Machinery and equipment		Construction in progress		Total
Balance as of March 31, 2025	¥	652,478	¥	1,101,044	¥	1,161,257	¥	295,142	¥	3,209,921
Balance as of March 31, 2026		655,174		1,151,040		1,079,299		310,869		3,196,382

For commitments for purchases of property, plant and equipment, see note 28.

For the details of EV-related impairment losses, see note 4(d).

(Right-of-use

Assets)

Property, plant and equipment in the consolidated statements of financial position includes the

right-of-use

assets under lease arrangements, which are mainly included in Automobile business.

Honda leases mainly dealer’s stores, company housing and parking lots, under arrangements that often contain extension and termination options. Since lease contracts are managed at each company and individually negotiated, the lease contracts include various terms. Extension and termination options are included mainly in order to enhance operational flexibly of each company.

The changes in the carrying amounts of the

right-of-use

assets for the years ended March 31, 2025 and 2026 are as follows:


	Yen (millions)
	Land			Buildings and structures			Machinery and equipment			Total
Balance as of April 1, 2024	¥	91,186		¥	137,598		¥	94,227		¥	323,011

Additions		5,689			33,006			36,544			75,239
Depreciation		(6,399	)		(19,110	)		(50,115	)		(75,624	)
Other		(3,839	)		(7,669	)		(1,413	)		(12,921	)

Balance as of March 31, 2025	¥	86,637		¥	143,825		¥	79,243		¥	309,705

Additions		8,500			38,740			39,824			87,064
Depreciation		(6,988	)		(26,452	)		(43,927	)		(77,367	)
Other		1,032			(366	)		(729	)		(63	)

Balance as of March 31, 2026	¥	89,181		¥	155,747		¥	74,411		¥	319,339