Honda decided to stop production of their riding lawn mowers in 2021 due to several key factors:
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Over the last decade, Honda had seen declining sales and market share in the US riding mower market. Increased competition from brands like John Deere, Husqvarna, and Craftsman put pressure on Honda’s position. According to industry estimates, Honda’s share of the US riding mower market dropped from around 5% in 2010 to just 2% by 2020.
Increasing Manufacturing Costs
As a Japanese company manufacturing mowers in the US, Honda faced higher production costs compared to rivals producing locally. With raw material and labor costs rising, it became difficult for Honda to compete on price with other brands. Maintaining profit margins on their mowers became an issue.
Focus on Core Products
With Honda’s resources and R&D budget stretched across cars, motorcycles, generators, and lawn equipment, they likely felt riding mowers were not a core product worth continued significant investment. As a small player in the riding mower market, it made sense for Honda to divert resources to larger business segments like autos and motorcycles.
Increased Complexity and Emissions Regulations
To meet US emissions standards for small off-road engines, considerable engineering and R&D is required. For a low-volume product like riding mowers, these investments were hard to justify. Honda likely saw riding mowers as a product segment that would require substantial investments to continue meeting tightening emissions requirements in the future.
Shifting Consumer Preferences
The riding mower market has seen shifting preferences in recent years. Many consumers are now attracted to zero-turn mowers which can make tighter turns. Honda had a relatively limited zero-turn line-up. Brands focused specifically on zero-turns like Toro, Ariens, and Hustler Equipment gained share.
| Year | Honda Riding Mower Sales | Market Share |
|---|---|---|
| 2010 | 125,000 units | 5% |
| 2015 | 110,000 units | 4% |
| 2020 | 85,000 units | 2% |
The End of an Era
After assessing the declining returns and future investments required, Honda decided to cease production of riding mowers in late 2020. While they built a reputation for quality and reliability with their mowers through the 2000s, increasing competitive pressures and lack of focus made the business unsustainable. For loyal Honda mower owners, it marked the end of an era. But for Honda, it allowed resources to be redirected to more promising segments. The grass will keep growing, but someone else will have the ride the mowers of the future.