The Japanese “big four” motorcycle manufacturers may no longer be in step with each other in a formal reporting sense, but their global ethos still rules the powered two-wheeler roost in the latest set of three nine-monthly and one full-year results revelations. To sum these up, BDN financial editor Roger Willis highlights Honda basking in glory, while Kawasaki successfully extracted itself from some self-inflicted recall issues. Meanwhile, Suzuki is refreshingly committed to motorcycles again. However, Yamaha still hasn’t learned how to translate a strong product portfolio and revenue stream into consistent profits
HONDA unchallengable
Now fully geared up to roar past the 20 million units per year marker once more, the Honda motorcycle business maintains its status as an unchallenged global success story.
In the nine months of its current fiscal year to 31 December 2024, Honda’s revenue from motorcycles grew by 14.8% year-on-year to an extraordinary total of £14.065bn. Associated operating profit was a muscular 21.9% up to £2.606bn. Operating margin increased to 18.5% from 17.5%. These figures made a mockery of the restrained profitability delivered by the much larger Honda automobile operations – which yielded an operating profit declining by 12.6% to £2.091bn, with an anemic operating margin on cars falling to 3.7% from 4.6%.
At the heart of Honda’s three-quarterly motorcycling hegemony were worldwide sales rising by 11.1% to 15.508 million units, dominated by Asian sales growth 11.2% up to 13.216 million. Other emerging regions added 13.5% to 1.36 million.
The brand’s wholly-owned HMSI subsidiary in India was by far its largest Asian contributor, 22.6% up to 4.138 million. Astra Honda in Indonesia, a JV affiliate with the British Jardine Matheson trading conglomerate, was in hot pursuit, 5% up to 3.619 million. An economic recovery in Vietnam lifted unit sales there by 12.6% to 1.774 million. Only Thailand, still subject to a struggling economy, was in any sense on the back foot, 7% down to 1.004 million. Elsewhere, Honda’s Brazilian manufacturing hub in Manaus, supplying emerging markets throughout Latin America, notably increased output by 7.3% to 974,000 units.
Developed-world markets weren’t shabby either. Higher-margin European sales volume rose by 11.4% to 361,000 units. And North America put on 10.4% to 413,000. Only Japanese domestic sales were a disappointment, falling by 12.7% to 158,000 units.
All major markets have since been revised upwards in full-year unit sales forecasts to 31 March 2025. Japan should reach 225,000. North American headcount is destined for 545,000. Europe is in line for 485,000. Asia will be boasting 17.505 million and other emerging regions 1.84 million. Finally, the overall total – which had already been elevated to 20.2 million – is now targeting a record 20.6 million units.
Yen-£ currency translation at forex rates applicable on 13 February
TEAM GREEN HEDGING ITS BETS
Although a weak profit forecast for Kawasaki’s Powersports and Engine division is tempered by various factors in three-quarterly results, full-year performance is nevertheless more promising.
Turnover for the April to December period rose by 3.2% to £2.221bn. The impact of a recall for the Mule Pro 1000 ORV series was usefully offset by an increase in motorcycle sales. However, operating profit fell by 10.3% to £152.8m, owing to revised fixed costs associated with investment for increased production.
Revenue from motorcycles for developed countries grew by 16.7% to £844.4m. Associated wholesale volume was 15.3% up to 151,000 units. Within that, North America put on 33.9% to 79,000 units and Europe improved by 9.5% to 46,000 units. Motorcycle revenue generated in emerging markets reduced slightly, 1.5% down to £386.5m. But wholesale volume increased by 11.8% to 180,000 units. Kawasaki’s biggest emerging market was in the Philippines, delivering a 30.1% rise to 134,000 units.
Revenue from utility vehicles, ORVs, ATVs and personal watercraft, principally driven by activity in North America, suffered a 9.9% decline to £622.9m, with volume dropping by 25.4% to 47,000 units. This was related to the aforementioned ORV recall, recovery from which is progressively anticipated. A further £366.8m came from general-purpose petrol engines.
Full-year volume forecasts predict developed-world motorcycles reaching 260,000 units, emerging-market motorcycles hitting 275,000 units and ORV, ATV and PWC recovery to 80,000 units. Full-year revenue is forecast to increase by 8% to £3.407bn and operating profit will revive during Q4 to flatline on £255.5m.
Yen-£ currency translation at forex rates applicable on 10 February
STEADY GROWTH FOR SUZUKI
Suzuki Motor Corporation’s motorcycle business registered reasonable progress in the nine months of its current fiscal year to 31 December, although surging sales at its wholly-owned Indian subsidiary took much of the credit.
Total revenue over the period rose by 11% to £1.565bn, while a still modest operating profit was 11.6% up at £164.8m. Turnover from Asia was dominant, rising by 18.6% to £846.3m. Within that, India stacked on 24% to £569.6m. Revenue from developed markets wasn’t so impressive. Europe grew by 2.4% to £178m. But North America was 14.6% down to £155.3m and Suzuki’s Japanese domestic turnover fell by 8.6% to £73.7m.
Three-quarterly global Suzuki PTW production rose by 6.2% to 1.52 million units. India was responsible for 828,000 of them, a 15.1% increase. Elsewhere in Asia, production declined by 4.9%, mainly reflecting reduced output in China. Japanese domestic production also shrank, 16.5% down to 66,000.
Worldwide sales over the first nine months were 7.1% up to 1.548 million units. Again, this highlighted Indian success, where numbers sold climbed by 18.7% to 779,000. Other Asian emerging markets taken together did less well, falling by 10.7% to 491,000. In the developed world, European wholesale volume improved by 21.4% to 34,000 and North America rose by 4.3% to 24,000.
As Q4 dawned in January, Suzuki celebrated its booming Indian presence with new models launched at the Bharat Mobility Global Expo 2025, held in New Delhi. These were led by the e-Access, its first “global strategic” battery-electric scooter and a new version of the best-selling conventionally fuelled Access. They were joined by a Gixxer SF250 motorcycle capable of running on 85% bioethanol fuel approaching carbon neutrality.
Not everything went according to plan, though. The original full-year production forecast indicated growth from the previous year’s 1.914 million units to 2.003 million. But this was subsequently revised downwards by 11,000 units, owing to weakening demand in China. However, the full-year sales volume forecast has now been elevated to 2.035 million units, a 6.4% year-on-year advance. The key points should now see Asian sales, obviously led by India, reach 1.677 million. North American headcount should be 6.6% higher at 32,000 and Europe is rostered to hit 41,000.
Yen-£ currency translation at forex rates applicable on 6 February
YAMAHA COULD DO BETTER
Having had plenty to celebrate in every previous quarterly stage of its advance through 2024, Yamaha’s motorcycle business once again fell at the final full-year profitability hurdle.
Annual revenue from motorcycles finished 11.2% up at £8.22bn. Developed markets delivered an 11.8% rise to £2.089bn. Asia put on 4.2% at £4.603bn. Latin America and other regions added 37.7% to £1.528bn. Particular credit was attributed to higher shipments in the developed markets of North America and Europe, while shipments in emerging markets rose primarily in Brazil and India.
Then pathetically weak operating profit spoilt the party, improving by a mere 0.8% to £661.8m. According to the official excuse: “Operating income was on par with the previous year due to personnel costs and higher SG&A expenses from provisions for product warranties and other payments.”
Full-year unit sales grew by 2.8% to 4.961 million. Asian volume was the biggest slice but marginally 0.5% down to 3.863 million. European sales rose by 8.1% to 226,000 units, eliciting a revenue contribution which was 13.8% up to £1.288bn. North American volume grew by 7.9% to 82,000 units, with associated revenue 17.4% up to £466.2m. Sales volume in other regions surged by 23.2% to 718,000 units. Japanese domestic sales were negative, falling by 5.3% to 72,000 units. Associated revenue dropped by 4.9% to £232.8m.
Yamaha’s motorcycle business revenue forecast for 2025 predicts an overall annual rise of 3.9% to £8.544bn. Developed markets turnover should be 2.2% up to £2.134bn. Asia is billed for a 5.7% improvement to £4.865bn. But Latin America and other regions are likely to approximately flatline. Wishful thinking has operating profit boasting 3.6% growth to £685.4m – although it may trend similarly to the past year due to rising raw material prices.
In its forecast commentary, Yamaha expects unit shipments in Europe to continue growing. And in emerging markets, demand in India, the Philippines and Indonesia will increase. The latter will also apparently benefit from a recently launched Aerox premium scooter model taking the lead in unit sales.
Yen-£ currency translation at forex rates applicable on 12 February