Despite a small drop in the vast number of Honda-branded bikes shipped in the first six months of its current financial year to end of September, the world’s leading powered two-wheeler manufacturer remorselessly cranked up both its turnover and profits from the sector.
Total sales volume for the period, including a large proportion of machines produced by joint-venture affiliates, fell by 2.6% to 8.475 million units. However, those made by wholly-owned subsidiaries rose by 1.7% to 5.285 million units. Main culprits for the lower headline figure were reduced purchases in Asia and Latin America. Asian sales were hit by decreases in China and Indonesia, partially offset by growth in Vietnam and Pakistan, finishing 2.1% down at a “mere” 7.422 million units.
Elsewhere, Honda enjoyed almost completely uninterrupted good news. European sales volume increased by 7.5% to 114,000 units. North America posted a bigger jump of 16.3% to 150,000 units.
Premium pricing in such developed markets helped to lift associated revenue by 7.8% to £4.96bn. Resultant operating profit soared by 22% to £560m. Operating margin also improved, rising from 10% in the first half of last year to 11.3%.
For the full fiscal year to 31 March 2016, Honda has now revised its European motorcycle sales volume forecast upwards, from a previous estimate of 190,000 to 200,000 units. North America gets a lift from 325,000 to 335,000 units.