Automobiles are self-propelled vehicles that run on four wheels, or a combination of four. They have seats for passengers, and they usually run on gasoline or diesel. Most definitions describe automobiles as vehicles that are run on roads, or that transport people or cargo.
Motorcycles, on the other hand, are two-wheeled vehicles with an engine that provides propulsion. These vehicles are self-propelled, but their number of passengers is limited.
In some court cases, motorcycles have been ruled not to be automobiles. That said, the definition of “automobile” is technical and can get very nit-picky.
Some definitions of the term automobile include passenger cars, trucks, and vans. Others are more expansive, including motorized scooters. Still others define a car as any vehicle with four wheels.
Honda’s auto business is heavily concentrated in North America, where the company has a strong market share. However, the company’s sales in Asia are up more than double since FY3/2011.
In addition, Honda has a foothold in Latin America and Africa. However, the company faces the challenge of expanding into neighboring markets. It is also facing major investment costs for developing electric vehicles, which could dilute margins in its core business.
The Honda brand has a good history of creating high-return motorcycles. Its free cash flow has been positive for the past five years.
Honda is also well capitalized. This helped the company maintain a stable net cash position of over $2,093 billion in the fiscal year ending March 31, 2020.