Honda’s motorcycle business remains strong amid broader financial challenges
Honda Motor Co. released its financial results for the fiscal year ending March 31, 2025, revealing a mixed performance across its business segments. While overall profitability declined, the company’s motorcycle business continued to show strength and resilience, standing out as a key driver of income amid global headwinds.
Motorcycle segment
The motorcycle division proved to be a crucial pillar of Honda’s portfolio, generating an operating profit of 663.4 billion yen ($4.58 billion USD), representing an 18.3% operating margin—the highest among Honda’s major business units. Sales revenue from motorcycles climbed to 919.6 billion yen ($6.35 billion USD), a 6.7% increase year-over-year, highlighting robust demand and operational efficiency in key markets across Asia and Latin America.
This performance contrasted with the automobile division, which posted a lower operating profit of 243.8 billion yen and a thin margin of just 1.7%, while also suffering a 2.8% drop in sales revenue. The motorcycle unit’s continued growth underscores Honda’s strategic strength in two-wheeled mobility, especially in emerging economies where motorcycles remain a primary mode of transportation.
“Our motorcycle business continues to deliver stable cash generation and profit margins, which has been critical in offsetting the headwinds we faced in China and the one-time impact from warranty model changes.” —Toshihiro Mibe, president and CEO of Honda.
Market resilience
Despite headwinds such as declining Chinese sales and adjustments to its warranty estimation models, Honda’s motorcycle segment remained resilient. The company credits its diverse product lineup, localized production capabilities, and growing presence in price-sensitive markets for cushioning the impact of macroeconomic fluctuations.
In a year where consolidated operating profit dropped 12.2% to 1,213.4 billion yen, and net profit fell 24.5% to 835.8 billion yen, the motorcycle business not only preserved its profitability but also increased its contribution to the overall earnings mix.
Outlook for FY2026
Looking ahead, Honda forecasts a challenging fiscal year ending March 2026, with operating profit projected to decline by 58.8% to 500 billion yen. Yet, the motorcycle division is expected to remain solid as the company continues investing in electrification, emerging markets, and innovative mobility solutions.
In light of growing global demand for efficient, lower-emission transportation, Honda is doubling down on developing electric motorcycles and expanding its production network to maintain competitiveness. Although detailed segment forecasts for FY2026 have not yet been disclosed, the strong momentum in this division is expected to help buffer the effects of broader industry volatility.
Conclusion
While Honda faces a turbulent road ahead in its automobile and financial services businesses, the motorcycle segment is riding high. With strong operating margins, steady revenue growth, and strategic alignment with global mobility trends, Honda’s two-wheeler business remains a standout performer—and a key element of the company’s diverse portfolio.
