HONDA, SLOW BUT STEADY
Honda’s motorcycle business got off to a slow but steady and profitable start during Q1 of its new 2025/26 fiscal year. Three-monthly revenue to 30 June increased by a modest 1.5% to £4.853bn. Operating profit rose by 6.4% to £964m. Operating margin grew from 18.9% to 19.9%.
Global sales volume made a remarkably slight advance of 1.6% to 5.143 million units. Asian markets were largely responsible, of course, just 0.2% up to 4.284 million. Other emerging regions improved by 14.8% to 536,000. In the developed world, North America put on 7.6% to 142,000. European countries were 11.6% down to 122,000. Japanese domestic sales increased by 18% to 59,000.
The company’s full-year motorcycle unit sales forecast to 31 March 2026 remains at 21.3 million, set against the 20.572 million result to 31 March 2025. However, there have been some changes. Asian sales have been marginally revised downwards by 0.3% to 18.060 million. Conversely, other emerging regions have been elevated by 2.2% to 2.095 million. Japanese domestic sales will be static at the previous 210,000 estimate. North American sales have been revised to 1.8% lower at 535,000, and European sales will be 7% down to 400,000.
Best not to mention a Q1 operating loss incurred by the Honda automobile business, which is probably associated with forthcoming US punitive tariffs.
SUZUKI, HEALTHY PROFIT
Suzuki Motor Corporation kicked off its motorcycle business Q1 fiscal with total turnover dead flat year-on-year at £534.6m. However, operating profit was relatively healthy, climbing by 5.5% to £65.3m, mainly thanks to unit sales growth in India. Q1 revenue from Asia only crept up by 0.9% to £278m. But within that, India had put on 3.1% to £186.7m. Other emerging markets improved by 16% to £114.3m. Europe was 17.1% down to £64.3m. North America fell by 3.5% to £56.6m.
Suzuki’s Q1 production rose by 2.9% to 535,000 units. India was responsible for 291,000 of them. Other Asian assembly operations accounted for 193,000. 21,000 were made in Japan. Quarterly sales increased by 4.9% to 548,000. Asia sold 179,000 and India 271,000. North America and Europe were respectively responsible for 9000 each.
The full-year forecast to 31 March 2026 predicts total production marginally lower by 0.7% at 2.028 million. 1.824 million will be made in Asian factories, also a 0.7% reduction. Japanese domestic production is expected to increase by 7.4% to 97,000 units. North American assembly will decline by 48% to 2000. Production at other plants will fall by 6.2% to 104,000.
The full-year unit sales volume forecast sees a rise by 0.7% to 2.078 million. Japanese domestic sales will fall by 8.4% to 33,000. Europe is expected to be 7.1% down to 37,000. North American sales are set to rise by 11.1% to 33,000. Asia, including India, should be 1.5% up to 1.721 million. Various other markets will drop by 3.5% to 255,000.
KAWASAKI CONFUSION
The Powersports and Engine division of Kawasaki Heavy Industries seems to dive into a welter of financial confusion and hurriedly revised forecasts as soon as the first quarter of its latest fiscal year has barely swung into gear. And the advent of FY2025/26. Q1 offered no exception.
Total Q1 revenue climbed to £817.7m, a year-on-year increase of £79.1m. This, we were told, was due to higher shipments of four-wheelers (Utility, ATV, ORV, etc) for North America, “despite the impact of yen appreciation”. But operating profit fell by £17.3m to £40.8m. And operating margin declined from 8% to 5%. The decrease was blamed on that aforementioned yen appreciation, as well as “higher fixed costs associated with increased production investment, despite increased revenue”.
And forecasts set in May were already being revised downwards before Q1’s conclusion. “Weakening demand in the US powersports market, despite changes in forex rate assumptions”, were predicted to cut about £200m off the previous ongoing revenue forecast. And operating profit was expected to take a £92m hit “due to lower revenue and deteriorating profitability caused by the impact of US tariff policy”.
The Q1 revenue breakdown began with motorcycles for developed countries, the contribution of which grew by 5.2% to £327.9m. Motorcycles for emerging markets rose by 5.9% to generate £126.5m. Four-wheeled vehicles and personal watercraft were 13.3% up to £235.2m. General-purpose petrol engines added £127m.
Kawasaki’s wholesale unit motorcycle volume for developed countries during Q1 was 11.3% up to 59,000. North America flatlined on 23,000. Europe rose by 4.6% to 22,000. Japan shifted 10,000, and about 1000 went elsewhere. North America was also in receipt of around 19,000 four-wheeled vehicles and PWCs.
Emerging markets wholesale unit motorcycle volume reached 63,000. The Philippines had the biggest slice, 46,000. Indonesia took 3000 and Latin America 4000. China and Thailand also received a limited number.
In its global market overview, Kawasaki claimed that, despite a softening US retail motorcycle market, its share remains strong. The four-wheeled market in the US is expected to grow over the medium to long term, but sales of recreational models, which are susceptible to loan interest rates and fuel price increases, have softened. Additional tariffs are also raising concerns about weaker demand.
In Europe, Kawasaki said that despite a temporary retail slowdown following a pre-registration surge (as if we didn’t know…), it had expanded market share through effective promotions and successful new models.