Honda Philippines Inc. has finalized the merger with its affiliate, Honda Parts Manufacturing Corp., as part of broader push to centralize production and streamline its supply chain in the country.

In a statement, the company said the Securities and Exchange Commission (SEC) approved the consolidation on Feb. 11, with Honda Philippines serving as the surviving entity.

The merger will take full effect on April 1, at which point all operations will be integrated under a single management structure.

The move marked a pivot for the Japanese motorcycle maker’s local presence, effectively housing motorcycle assembly and component manufacturing under one roof. By eliminating the corporate divide between the two units, the company aims to bolster manufacturing flexibility and accelerate its response to shifting consumer demand for motorcycles and power products.

The Philippine motorcycle market has remained a key pillar for Honda’s regional growth, driven by consistent demand for fuel-efficient commuters and utility models.

“This merger is an important step in building a stronger Honda organization in the Philippines,” said Takeshi Kobayashi, President of Honda Philippines.

“By unifying our manufacturing and parts operations, we are strengthening our ability to operate more efficiently while continuing to contribute to Philippine society,” he added.

While corporate mergers often trigger workforce reductions, Honda clarified that the integration will not result in layoffs.

All regular employees from both entities will be retained under the new structure, a move intended to preserve operational stability and technical expertise during the transition.

The company also intends to maintain its existing network of local suppliers and institutional partners, emphasizing that the leaner organizational framework will focus on maintaining quality standards for its domestic customer base.

The consolidation comes as manufacturers in the Philippines face pressure to optimize costs amid fluctuating raw material prices and logistics hurdles. By folding Honda Parts Manufacturing into the primary assembly arm, the firm can better manage its internal transfer pricing and inventory overhead.

Honda Philippines has operated in the country for decades, carving out a dominant share in the two-wheel segment. The merger signals a long-term commitment to the Philippine market, ensuring that its local production capabilities remain competitive against imported units from regional hubs like Thailand and Vietnam.