The Success Story of Honda Founder

Saitiro Honda always felt an irresistible pull towards the automotive industry since his childhood. Even as a teenager, he worked as a mechanic in a small garage where he tuned and prepared cars for races and various competitions. With financial support from friends, Honda founded the Tokai Seiki project in 1937, which focused on manufacturing piston rings.

How It All Began?

After several setbacks, Tokai Seiki won a bid to produce and supply piston rings for Toyota. However, the contract was quickly lost due to the poor quality of the finished products.

Following his (incomplete) studies at an engineering school and visits to several Japanese factories to understand Toyota's processes and quality control requirements, by 1941, Honda was able to achieve the quality of his products that fully satisfied the customer. It is important to note that Tokai Seiki utilized an automated production process that could be successfully mastered even by unskilled workers.

After Toyota purchased 40% of Tokai Seiki's shares, Saitiro Honda stepped down as the president of his project and was demoted to a senior manager. In 1944, an American bomb explosion destroyed the Yamashita plant owned by Tokai Seiki, and in 1945, another plant in Itawa suffered significant damage from an earthquake. The remnants of the company were ultimately sold for approximately $450,000. The proceeds became a pledge for the progressive development of the technical research institute.

With only 12 employees working in a small space measuring 172 square feet, the company successfully began manufacturing and selling motorized bicycles with Tohatsu engines. Due to the end of Tohatsu engine supply, Honda had to start producing its own versions of Tohatsu motors.

Within a relatively short period, by 1964, Honda became the world's largest motorcycle manufacturer. The company then expanded into the passenger car segment. The popularity and quality of Honda are the best indicators of its success to this day.