Here’s something that jumps out and refuses to be ignored: Honda’s car division lost money. But the motorcycle division did not. That contrast tells you almost everything you need to know about where the real strength of this company lies right now, and it sets the tone for what is one of the most fascinating financial storylines in the industry.
For the first nine months of its fiscal year, Honda reported net income of 465.4 billion yen (around $3 billion), a steep 42.2% drop year over year, with operating profit falling 48.1% to 591.5 billion yen (approx. $3.8 billion) and revenue easing 2.2% to 15.9 trillion yen (roughly $102 billion). On paper, those numbers look bruised. They suggest a company under pressure. But then you look closer.
The automobile division alone posted an operating loss of 166.4 billion yen ($1.1 billion), weighed down by tariffs on imported vehicles, slower than expected EV adoption in the US, and one time EV related charges that dragged margins into the red. In isolation, that’s a rough quarter. In context, it’s a reminder of how volatile the car industry has become simply because of geopolitics.
