Apparently avoiding most of the geopolitical challenges hobbling their Western counterparts, the four doughty members of Japan’s motorcycle industry are storming ahead in latest quarterly and half-year results.
HONDA – STRAIGHT ON THE CASE
As you’d expect from the dominant global manufacturer, Honda’s motorcycle business hit the ground running in its Q1 results to 30 June 2024, beating almost every parameter in terms of growth. Revenue for the period climbed by 23.9% to £4.989bn. Operating profit was 23.7% up to £945.2m. But operating margin fell very slightly from 19% to 18.9%.
Worldwide unit sales volume rose by 13.2% to 5.062 million. Asian markets were the biggest contributor, rising by 13.1% to 4.275 million. Europe grew by 16% to 138,000.
North America put on 10% to 132,000. Other regions taken together added 18.2% at 467,000. Only Japanese domestic sales let the side down, falling by 13.8% to 50,000.
Wholesale volume activity in Honda’s largest individual markets was led by its wholly-owned HMSI subsidiary in India, increasing by 48.5% to 1.414 million. Vietnam was 5% up to 531,000. The Astra Honda joint-venture with British conglomerate Jardine Matheson in Indonesia made a modest 0.6% advance to 1.122 million. Honda’s wholly-owned Brazilian manufacturing hub at Manaus registered 17.5% growth to 318,000. The Honda plant in Thailand – which is still afflicted by the throes of an economic downturn – was the only disappointment, with sales falling by 10.2% to 355,000.
Honda is still absolutely confident about its full-year forecast targets set at the beginning of April. These anticipate total annual volume rising by 5.2% to 19.8 million units – potentially within reach of 20 million. Asia should deliver 16.905 million. Among developed markets, Japan is expected to hit 200,000, North America 480,000 and Europe 475,000. Other regions are flagged for 1.74 million.
Yen-£ currency translation at forex rates applicable on 12 August
KAWASAKI – SLOW OFF THE GRID
The powersports and engine division of Kawasaki Heavy Industries didn’t seem too bothered by a tame opening gambit for its new 2024/25 fiscal year, because some bold forecasts were attached. Team Green’s Q1 revenue barely moved, just 0.6% up to £766.3m. An increase in motorcycle shipments was offset by a temporary decline in off-road vehicle sales, due to a US market recall for the Mule Pro 1000 series. This has now apparently been completed. However, quarterly operating profit was shabby, 19.6% down to £61m. Deterioration was blamed on higher fixed costs. Operating margin slipped from 9.9% to 8%.
In the three-month period, turnover from motorcycles destined for developed markets rose by 20% to £323.8m. Significant wholesale shipment volumes were a 4.5% rise to 23,000 units in North America and a 16.7% increase to 21,000 in Europe. Japan’s domestic sales fell by 14.3% to 6000. Total volume was 6% up to 53,000. The fate of “others” referred to Australia, where volume halved to just 1000 units.
Motorcycles for emerging markets yielded a 16.4% turnover improvement to £124m. Related wholesale shipments amounted to 63,000 units, growing by 40%. The Philippines stood out, with volume 62% up to 47,000. Indonesia almost doubled to 7000. Latin America flatlined on 2000. “Others”, named and shamed in a side-bar reference as China and Thailand, took 6000 bikes between them.
Revenue from utility and recreational off-road vehicles, quadbikes and personal water craft – mostly aimed at North America – dropped by 23.6% to £183.9m. Turnover from general-purpose petrol engines was 7% down to £134.6m.
Specific to European operations, the division’s overview commentary said: “The retail market remains strong and our market share is growing, due to recovery of supply capacity and launch of new models.” And on a similarly brighter note, Kawasaki has issued a full-year divisional forecast of revenue surging by 21.5% to £3.816bn and a 41.7% operating profit improvement to £360.4m.
Yen-£ currency translation at forex rates applicable on 9 August
SUZUKI – PROMISING START
The first quarter of Suzuki Motor Corporation’s new fiscal year ticked all the right boxes for its motorcycle business. But SMC is being careful about longer-term forecasts. Q1 revenue from Suzuki motorcycle operations delivered an impressive surge, 21.9% up to £555.4m. Operating profit more than doubled, rising by 102% to £64.1m. Operating margin rose from 7% to 11.5%.
Total production during the period grew by 9.5% to 520,000 units. Among the two biggest contributors, products made in India increased by 25.5% to 271,000, while Asian output was 4.3% down to 202,000.
Global sales volume was 8.9% higher at 523,000 units. India improved by 27.9% to 247,000. But Asia was 8.8% lower at 186,000. North America put on 10% to 11,000, European numbers flatlined at 13,000 and Japanese domestic sales fell by 25% to 9000. Other unspecified markets taken together were 16% up to 58,000.
Money-wise, India topped the turnover pile with a 44.9% increase to £188.2m. Asian countries were 19.2% up to £98.6m. European revenue added 2.7% at £80.6m. North America was just 0.9% up to £61m. £102.3m from other markets and Japanese domestic input filled the difference.
However, Suzuki’s full-year forecast to 31 March 2025 anticipates sales volume falling by 1.2% to 1.892 million units, with uncertainties in Asia largely held responsible. On a brighter note, European sales are expected to rise by about 25% to 40,000.
And an interesting add-on to the Q1 results statement flagged up participation in July’s Suzuka Eight Hours endurance race, where a modified Team Suzuki CN Challenge GSX-R1000 entry took an 8th-place finish, apparently running on FIM-certified sustainable E40 biofuel and also employing non-fossil lubricants.
Yen-£ currency translation at forex rates applicable on 7 August
YAMAHA – ON A ROLL
Having hit the half-way stage of its current fiscal year on 30 June, Yamaha’s motorcycle business has plenty to celebrate. Six months in, total revenue was 16.2% up at £4.362bn. Within that, turnover from developed markets grew by 19.4% to £1.215bn. Asian emerging markets put on 6.6% to £2.329bn. Latin America and other regions went relatively ballistic, soaring by 48.3% to £817.5m. Operating profit generated by motorcycles sky-rocketed, 71.1% up to £544.9m. Operating margin rose from 8.5% to 12.5%.
However, global unit sales volume only increased by 1.2% to 2.491 million, owing to a mixed picture from emerging markets. Overall Asian volume was 2.7% down to 1.908 million. Brazil, India and Indonesia performed well, beating forecasts with respective 26%, 25% and 10% gains. And Vietnam bottomed out of a Q1 downturn to rebound by 15%. But Thailand, the Philippines and China – all suffering economic issues – posted respective volume losses of 24%, 20% and 38%. A better model mix for some relieved financial stress.
Elsewhere, the big developed markets were generally upbeat. North American volume was 13.3% up to 51,000 and associated revenue climbed by 34.5% to £296.8m. In European countries, unit sales were 9.9% higher at 133,000 and revenue 20% up to a plump £756.1m. The Japanese domestic market blotted its copybook, though. Unit headcount fell by 4.7% to 36,000 and related turnover was 7.7% lower at £114.8m.
Second-half forecasts waxed lyrical about improved profitability due to increasing sales of premium segment models and stable, growing demand in major markets. But the results statement assiduously avoided crunching any revised hard numbers. Inevitably, the standard qualification waffle about external environment uncertainties – forex rate trends, rising global input prices, interest rates and intensifying competition – were stirred into Yamaha’s corporate cauldron.
Yen-£ currency translation at forex rates applicable on 13 August