Three quarters of the way through its fiscal year and yet another shining example of the Japanese bike industry’s post-pandemic boom, Honda’s motorcycle business flaunted global domination with gusto. BDN financial editor Roger Willis reports.
Nine-monthly turnover from bikes raced ahead by 37.5% to £13.902bn. Related operating profit added a stratospheric 62.1% to reach £2.377bn — 15.6% higher than the combined profits of Honda’s car manufacturing business and the hugely lucrative consumer credit and leasing arm which funds its activities. Operating margin hit 17.1%, up from 14.5%.Â
Worldwide Honda Group motorcycle wholesale volume covering both wholly-owned subsidiaries and joint-venture affiliates rose by 11.8% to 14.285 million units. Asia increased by 12.9% to 12.310 million. Among main Asian markets, the HMSI subsidiary in India put on 29.8% to reach 3.323 million, reasserting leadership status. But Indonesia’s Astra Honda (a 50-50 JV partnership with British-controlled conglomerate Jardine Matheson) was in hot pursuit, 4.2% up to 3.044 million. Vietnam grew by 25.7% to 1.939 million and Thailand by 27.9% to 1.064 million.
Other emerging regions improved by 10.1% to 1.234 million. Brazil was by far the biggest player, 13.6% up to 833,000 bikes emanating from Honda’s Latin American production hub in Manaus. North America led developed markets, 2.1% up to 339,000. But European sales volume shrank by 7.1% to 223,000. Japanese domestic volume fell marginally by 0.6% to 179,000. Â
However, full-year unit sales volume forecasts set at the end of Q2 have been revised. Total annualised numbers are now expected to be 300,000 higher at 18.730 million, predicting year-on-year overall growth of 10%. The winners are Asia, which should account for 325,000 more to hit a tally of 16.110 million, and a European increase of 10,000 to reach 345,000. Losers are Japan, 10,000 fewer to 245,000, North America with 10,000 fewer to 435,000, and a 15,000 drop to 1.595 million for other regions.
Yen-sterling currency translation at forex rates applicable on 10 February.  Â