Honda Motor Co. (HMC, Financial) completed a successful vertical launch and landing of its experimental reusable rocket in Hokkaido, marking the first such private Japanese demonstration of takeoff-and-touchdown technology.
The 6.3-meter test vehicle, built by Honda R&D, climbed to 271.4 meters before descending and touching down within 37 centimeters of its planned target, showcasing retractable landing gear, proprietary guidance algorithms and advanced flight-control systems.
The precision trial follows Honda's entry into space research in 2021 and underscores the company's engineering chops beyond its flagship auto and motorcycle divisions.
While Honda's rocket remains suborbital in scale, the small-satellite launch market could swell from $9.6 billion in 2025 to over $62 billion by 2030, driven by commercial constellations, government contracts and climate-monitoring missions.
SpaceX still leads with over 500 missions completed, but rival entrants such as Rocket Lab (RKLB, Financial) and Blue Origin are bolstering private-sector momentum outside the U.S. and China. Honda's mastery of precision engineering and factory automation could give it optionality to supply satellite deployment or data-service offerings down the road.
Why It Matters: The test doesn't move Honda's near-term revenue needle but signals a long-term strategic shift into high-growth space services, leveraging its core tech capabilities.
