Studiously avoiding the market instability entrapment currently afflicting Western challengers, Japanese motorcycle brands are doing what they do best – selling lots of bikes for lots of money.
SUPERLATIVES SURROUND HONDA
Six months into its fiscal year to 31 March 2025, Honda’s huge motorcycle business will soon be ready to resume a unique “world’s greatest” mantle, selling more than 20 million bikes annually again.
At the half-way mark, sales revenue had risen by 15.1% to £9.153bn. Operating profit was 28.6% up to £1.647bn and operating margin improved from 16.1% to 18%. Global sales volume had grown by 12% to 10.382 million units.
As usual, Asian performance led the way, 12.5% up to 8.861 million. Within that, Honda’s wholly owned HMSI Indian subsidiary was the star turn, boasting a 30.6% surge to 2.881 million. The Astra Honda Indonesian operation, a joint venture with British-owned conglomerate Jardine Matheson, was in hot pursuit, as its sales rose a more modest 6.4% to 2.453 million. Economic recovery in Vietnam also produced an 11.5% increase there, to 1.113 million. Only Thailand, still in a recession, was a disappointment, 8.9% down to 684,000.
Other emerging regions posted 12.8% growth to 887,000. Honda’s Manaus hub in Brazil played the biggest role in that, 8.6% up to 648,000.
Among developed markets, Europe put on 15.7% to 265,000 and North America was 5.5% up to 269,000. However, the Japanese domestic market declined by 18.1% to 100,000.
In Honda’s latest full-year forecast makes headline news with total estimated sales are set to improve by 7.3% to 20.2 million. Asian input has been revised upwards from 16.905 million to 17.17 million. Other emerging regions should now reach 1.83 million. In the bigger ticket developed world, Europe is billed for 475,000, North America for 525,000 and Japan for 200,000.
Yen-£ currency translation at forex rates applicable on 12 November
TWO WHEELS GOOD FOR KAWASAKI, FOUR WHEELS very BAD!
For a second year running, an infatuation with its North American ORV market has cost the Kawasaki Powersports and Engine division dearly, as yet another big recall related to the Mule Pro 1000 series and replacement of defective products had temporarily eaten into revenue and profits. It’s a shame, because the division’s motorcycle business is doing rather well.
In the first half of its fiscal year, divisional turnover declined by 5.2% to £1.283bn. Operating profit plummeted by 35.5% to £75.5m. Operating margin dropped from 8.7% to 5.9%.
But the revenue picture for PTW segments was very different. Motorcycles for developed countries delivered a 6.1% rise to £501.8m, with volume increasing by 4.6% to 91,000. Wholesale shipments into Europe were 10% up to 33,000. North America was 16.2% higher at 43,000. Other more minor destinations, led by Australia, were flat at 3000. Japanese domestic wholesale was 26.7% down to 11,000.
Turnover from motorcycles for emerging markets increased by 11.4% to £241.6m, while volume grew by 20.4% to 118,000. The Philippines were top of the pile, 38.7% up to 86,000. Indonesia rose marginally to 12,000. Latin America flatlined on 5000 and other regions, namely China and Thailand, shared a 31.6% slump to 13,000.
Conversely, ORVs, ATVs and personal watercraft mainly destined for North America were a burden. Unit sales volume sank by 43.9% to 23,000 and associated revenue was 29.7% down to £307.9m.
Qualifying its lucrative developed-world motorcycle business status, Kawasaki’s six-monthly statement said US street models remained firm but the off-road market had softened, owing to aggressive product supply from competitors intensifying. In Europe, it said the retail market and market share is growing due to recovery of supply capacity and new model launches.
Yen-£ currency translation at forex rates applicable on 13 November
SUZUKI ON A MISSION
Suzuki Motor Corporation’s motorcycle business is definitely on a mission. Half way through its current fiscal year, total revenue had grown by 11% to £1.022bn. Asian turnover as a whole amounted to £536.8m, rising by 18.6%, with revenue from India 25.5% up to £360.9m. European turnover fell slightly by 2.4% to £121.8m. North America was 8.6% down to £102.6m. Operating profit was 43.6% up to £114.7m. Operating margin came in at 11.4%.
In the six months to date, global production had increased by 5.7% to 1.035 million units. Suzuki’s Gurgaon plant in India was the biggest contributor, with output rising by 15.9% to 561,000. Beyond that, various other Asian factories together made 379,000, although their total represented a 5% drop. Japanese domestic production fell by 20.8% to 42,000.
Worldwide sales during the period were 6.7% up 1.022 million. Again, the Indian market dominated, rising by 20.1% to 496,000 bikes sold. Strong performances from the Access 125 scooter and V-Strom 250SX got most of the credit. Sales elsewhere in Asia declined by 8.9% to 348,000. In developed markets, North American sales improved by 5.9% to 18,000 while European numbers flatlined on 23,000. Japanese domestic consumption declined by 18.2% to 18,000.
Full-year forecasts have now been amended upwards. An original annual production target has been increased by 6% to 2.003 million units. Some 1.817 million of these will be made in Asia, obviously including Indian output. 91,000 will be manufactured in Japan, destined for developed and domestic markets.
The global sales volume target has been elevated by 6.2% to 2.008 million units. 1.672 million of them should be sold in Asia, including India. Emerging markets elsewhere will account for a further 228,000. Suzuki anticipates North American sales will be 3% down to 32,000. European volume is set to reduce by 2.5% to 39,000. Japanese domestic sales will decline by 2.6% to 37,000.
Yen-£ currency translation at forex rates applicable on 11 November
YAMAHA UP TO SPEED
Boasting the simple expedient of maintaining sound unit sales, allied to improving its range of premium models, has led to steadily increased revenue and profits for Yamaha’s motorcycle business in the nine months of 2024 to date. Celebration of optimistic full-year forecasts coming to fruition will surely follow.
Three-quarterly financial results at the end of September flagged up 13.5% growth in revenue to £6.158bn. Operating profit soared by 33.9% to £657.8m. Operating margin improved from 9.1% to 10.7%.
The company split its motorcycling turnover gains into three segments. Developed markets put on 15% to £1.632bn. Within that, Europe rose by 13.5% to £1.018bn and North America was 28.8% up to £373.4m. Japan’s domestic contribution rose by 3.1% to £168.5m. Asia increased by 6.8% to £3.392bn, supported by notable input from India and Indonesia. Latin America and other regions, with Brazil to the fore, stacked on 36.5% to £1.134bn.
Global unit sales during the period increased by 3.8% to 3.786 million motorcycles. Asia’s share was 0.7% up to 2.931 million of these. European volume grew by 9.2% to 189,000. North America put on 13.3% to 68,000. Japanese domestic sales declined marginally by 1.8% to 54,000. Other regions combined climbed by 20.7% to 543,000.
Yamaha’s latest full-year 2024 forecast for its motorcycle operations predicts a 12.2% revenue rise to £8.025bn. Operating profit is expected to increase by 20.3% to £764.1m.
Yen-£ currency translation at forex rates applicable on 14 November