In summer 2022, Honda announced that it will stop making and selling lawn mowers in the United States by the end of 2022. This decision marks the end of over 50 years of Honda producing lawn mowers for the US market. Honda has stated that several factors contributed to the decision to exit the lawn mower business.
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Declining Sales
One of the primary reasons Honda is ending lawn mower production is due to declining sales in recent years. The lawn mower market has become increasingly competitive, with many options for consumers from brands such as Toro, Cub Cadet, Craftsman, and more. As other brands have upped their technology and features while still providing quality mowers at lower price points, it has been difficult for Honda to compete.
Honda lawn mower sales in the US peaked in 2007 prior to the financial crisis. In the mid-2000s, Honda lawn mowers accounted for almost 10% of the total US market. However, since 2007, Honda’s market share has been on a steady decline down to around 2% in 2021. This sales slump made it difficult for Honda to justify continuing investments and production for lawn mowers when the returns were diminishing year over year.
Increased Manufacturing Costs
Another factor impacting Honda’s lawn mower business is the increased costs associated with manufacturing the machines. Honda lawn mowers are produced at Honda’s manufacturing facilities in North Carolina along with other Honda power equipment products. Over the last decade, costs related to raw materials, labor, shipping and other supply chain elements have all been rising steadily. As a Japanese company, Honda also faces currency exchange challenges when importing parts and materials to the US for production.
Unlike large US brands such as John Deere or Craftsman who produce lawn mowers domestically, it has become more of a cost burden for Honda to sustain US manufacturing for a shrinking lawn mower segment. Producing Honda lawn mowers in low-cost regions such as China or Southeast Asia could have alleviated some of these cost pressures, but Honda has preferred to keep production in North America to maintain quality standards. Ultimately the rising costs of sustaining US manufacturing has contributed to the decision to exit the category.
Shifting Brand Strategy
Honda has stated that the discontinuation of lawn mowers will allow it to focus energy and resources on other core segments including motorcycles, power equipment, auto manufacturing, and electrified power equipment. Resources previously dedicated to the lawn mower line including R&D, manufacturing, and distribution can now be reallocated to other growing and strategic products for Honda.
This shift aligns with Honda’s long-term brand strategy to concentrate on product segments that leverage its core engineering and manufacturing competencies. For example, Honda sees electrification, battery technology, and autonomous functionality as essential technologies where it wants to excel. Applying resources to expand Honda’s EV models and advanced power equipment can enhance Honda’s brand image as a forward-thinking, innovative company.
Lawn mowers are now viewed more as a commodity product with limited ability to differentiate. By phasing out lawn mowers, Honda can sharpen its focus on products that represent the future of mobility and power technologies where Honda can better stand out versus competitors.
Growth of Robotic Mowers
The rise of robotic mowers, sometimes referred to as “robo-mowers”, over the last decade has also likely influenced Honda’s decision to exit the manual lawn mower market. Robotic mowers are autonomous, battery-powered machines that use programming and sensors to navigate and cut grass in a yard or lawn area. Brands such as Husqvarna, John Deere, and Worx have introduced popular robotic mower models.
Robotic mowers still comprise a small portion of the overall lawn mower market in the US, but sales are growing at a rapid rate of over 15% per year. According to industry analysis, robotic mowers could account for over 25% of the powered lawn mower segment in North America by 2025 compared to just 5% currently.
As the technology improves and costs come down, robotic mowers are expected to continue eating into demand for traditional push and riding lawn mowers. Honda has acknowledged this shift in consumer preferences and determined it would rather transfer resources to other power equipment than try to fight for share in the declining manual mower segment.
Environmental Factors
In addition to market and cost factors, Honda’s decision can also be viewed through an environmental lens. Stricter emissions regulations, especially in California, have put pressure on gasoline-powered lawn mower engines. Brands such as Briggs & Stratton have been making larger investments in battery-electric mower technology to reduce environmental impact.
As a leader in emissions reductions and fuel efficiency, Honda may have been hesitant to keep dedicating substantial R&D to maintaining gasoline engine mowers compliant with tightening environmental rules. The acceleration of electrification in the lawn mower industry diminishes the value of Honda’s technical capabilities with small gasoline engines. Honda can contribute more to its environmental goals by focusing energy on hybrids and EVs versus sustaining gasoline mower engine programs.
Impact on Consumers
For consumers who prefer Honda lawn mowers, the discontinuation will mean having to switch to other lawn mower brands after 2022 when inventory runs out at retailers. However, there are still ample options for shoppers to find quality lawn mowers at similar price points to Honda models.
Brands like Toro, Ariens, and Craftsman offer comparable mowers to Honda in terms of cut quality, reliability, and performance. Over the next year, retailers will likely offer discounts and promotions on remaining Honda mower inventory providing some deals for shoppers before the line-up is phased out.
The growth of battery-powered electric mowers also provides more environmentally friendly options for consumers who want an alternative to gasoline mowers. Honda fans may appreciate switching to an electric mower from a brand they trust such as Ego, Kobalt, or Snapper. While selection and capabilities of electric mowers continue to expand, gas-powered mowers should still meet the performance needs of most homeowners for years to come through other brands.
Future of Honda Power Equipment
While discontinuing lawn mowers, Honda remains fully committed to its power equipment business in North America. Honda sells over 1 million power equipment units across North America annually covering categories such as generators, tillers, snow blowers, string trimmers, and more. Power equipment represents over 15% of Honda’s total North American sales.
Honda sees power equipment as an integral part of its “powering people’s daily lives” strategy. The company recently announced a 5-year, $1 billion investment to advance power equipment manufacturing in North America targeting electrified products. Honda believes power equipment presents opportunities to integrate advanced technologies and energy concepts that align with its vision for a cleaner energy future.
The lawn mower exit will enable Honda to consolidate resources around power equipment segments that engage its core engineering strengths. In lieu of mowers, Honda power equipment customers can expect more advanced generators, electric trimmers/blowers, robotic mowers, ATVs, and other products highlighting Honda’s capabilities for performance, efficiency, and innovation.
Conclusion
After over 50 years as a leading lawn mower brand in the US, Honda has made the difficult decision to exit the category by the end of 2022. Several market factors, business pressures, and strategic considerations ultimately drove Honda to discontinue its lawn mower lineup. For consumers, it will mean having to switch to other brands such as Toro, Craftsman, or Cub Cadet for any future mower purchases.
However, Honda remains energized about the future of its power equipment division. By reallocating resources away from lawn mowers, Honda aims to strengthen more core segments where it sees promising growth and ability to differentiate. Power equipment will continue offering consumers a range of advanced, high-performance products that embody Honda’s engineering pedigree and reflect its environmental and mobility goals for the future.