Honda Motor Co., Ltd.

HMC stock is not Shariah-compliant

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About Honda Motor Co., Ltd. (HMC)

Honda Motor Co., Ltd. is a multinational corporation that develops, manufactures, and distributes a wide range of products, including motorcycles, automobiles, power products, and aircraft. The company operates through four main business segments: Motorcycle Business, Automobile Business, Financial Services Business, and Life Creation and Other Businesses, offering a diverse portfolio of products and services to customers globally.

Frequently asked questions

Is Honda Motor Co., Ltd. (HMC) stock halal to invest in?
As of , HMC is not Shariah-compliant and is therefore not considered a halal investment. This assessment is based on the data available in Honda Motor Co., Ltd.'s most recent financial reports.
Does Honda Motor Co., Ltd. have any interest income?
Yes, Honda Motor Co., Ltd. does have interest income. According to the company's latest annual report for the fiscal year ending Mar 31, 2026, Honda Motor Co., Ltd. reported revenue of ¥23,111,116,600,000 and interest income of ¥190,289,208,000. The interest income represents 0.82% of the combined total. It's worth noting that some companies may report additional interest income as part of their revenue. For a detailed breakdown of all interest income and revenue segments, please refer to the full Shariah compliance report available in the Zoya app.
What guidelines are used to determine if Honda Motor Co., Ltd. stock is Shariah-compliant?
We use the guidelines set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) to assess Shariah compliance. AAOIFI is a leading international organization that establishes standards for Islamic finance. Their guidelines help determine if a company's business activities and financial structure align with Islamic principles. These standards are widely respected in the Islamic finance industry and provide a consistent framework for evaluating the Shariah compliance of stocks and other financial instruments. AAOIFI's Shariah board includes renowned scholars such as Sheikh Muhammad Taqi Usmani, Sheikh Mohamed Ali Elgari, Sheikh Abdullah AlManea, Sheikh Nizam Yaquby, and Dr. Aznan Hassan.
How often is Honda Motor Co., Ltd. stock reviewed for Shariah compliance?
The Shariah compliance status of Honda Motor Co., Ltd. stock is reviewed on a regular basis, with a minimum frequency of once per quarter. However, if there are any significant changes or major developments in the company's operations that may impact its compliance, an immediate review will be conducted to ensure ongoing adherence to Shariah principles.
How can I stay updated on Honda Motor Co., Ltd.'s compliance status?
To stay informed, we recommend regularly checking Zoya for updates. You can also enable alerts within the Zoya app to receive notifications whenever there is a change in the Shariah compliance of HMC, or any other stocks you are monitoring. This is particularly useful as Shariah compliance can fluctuate due to changes in a company's financial ratios or business activities.
Are dividends from Honda Motor Co., Ltd. stock considered halal?
No, dividends from HMC are not considered halal because the stock is currently not Shariah-compliant. When a stock is non-compliant, any dividends received from it are considered impermissible income and should be donated to charity as a form of purification. To learn more about the purification process and how to handle impermissible income, read our comprehensive guide.
Do I need to pay Zakat on my Honda Motor Co., Ltd. shares?
If you hold Honda Motor Co., Ltd. stock as an investment, through an Employee Stock Ownership Plan (ESOP), stock options, restricted stock units (RSUs), or any other form of stock ownership, and meet the Nisab threshold, you may be required to pay Zakat on it. The calculation of Zakat on investments can be complex and depends on various factors. To help make this easy, we've created a free Zakat calculator for stocks. For a more seamless experience, use the Zoya mobile app, where you can link your brokerage account to automatically import holdings.

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