Tuesday, July 23, 2024


With three quarters of its 2020/2021 fiscal year now done and dusted, Honda’s motorcycle business continues to race ahead of competitors in recovery from the Covid pandemic. BDN financial editor Roger Willis reports.

Nine-monthly revenue to 31 December was 20.7% down at £8.73bn, compared to a 27.3% reversal at the halfway point. Associated operating profit has fallen by 31.4% to £1.057bn, against a 46.1% shortfall three months earlier. Operating margin has revived to 12.1%, contrasting with 14% in the equivalent period of the previous fiscal year.

Once again, it’s a case of two wheels good, four wheels bad. Although Honda’s much bigger car operations have moved back into the black after posting a six-month operating loss of more than half a billion quid at the end of Q2, this still only amounted to a feeble three-quarterly operating profit plunging by 77% to just £365m — on a stupendous turnover of £44.118bn. Needless to say operating margin was pathetic at 0.8%.

Furthermore, bikes were improving rapidly in the third quarter. July-September turnover was only 7.4% down at £3.405bn. And operating profit was a mere 2.4% lower than Q3 2019 at £504m.  

Total global motorcycle wholesale volume over nine months stood at 10.591 million, 29.6% in arrears. Asia was responsible for most of that decline, sinking by 31.2% to 9.257 million. 

Among the largest Asian markets, India fell by 29.9% to 2.643 million, Indonesia by 53.9% to 1.677 million and Vietnam by 22.5% to 1.603 million. Conversely, Chinese sales were 9.1% up at 949,000.

In the developed world, North America led the way with an 8.6% rise to 240,000. Japan added 0.6% to 155,000. However, Europe dropped by 14.5% to 159,000.

For its full fiscal year to 31 March 2021, Honda is now predicting worldwide sales volume will be reduced by 22.4% to 15 million. Asia will account for 13.195 million. European countries should be responsible for 230,000 and North America for 320,000.  

[Yen-sterling currency translation at forex rates applicable on 9 February]



Product News

Verge opens first American stores

Futuristic electric superbike builder Verge, has opened its first outlets in the United States. The Los Angeles and San Jose stores are both based...