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.
And yet, despite all that, Honda is still profitable.
That’s where motorcycles enter the picture, not as a side note, but as the stabilizing force that keeps the entire structure upright. You see, globally, Honda sells more than 18 million motorcycles in a typical year, sometimes edging closer to 19 million, compared to roughly 3.5 to 4 million automobiles. The scale difference is enormous, and it reshapes how you think about the brand. For every Civic or CR-V rolling onto a US highway, a handful of small-displacement motorcycles are heading out into the streets of Jakarta, Manila, Bangkok, or Delhi.
Now, a lot of you know that I’m based in Manila, and the numbers stop feeling abstract every time I step outside. Every time I ride or drive through the city, I’m surrounded by a moving sea of Honda scooters. Clicks weaving through traffic. BeATs lined up at intersections. TMX workhorses with sidecars attached hauling cargo. Families balancing groceries on footboards. If you stand on an overpass during rush hour, you can watch hundreds pass in just seconds.
Now imagine that multiplied across Southeast Asia and India, two of the largest motorcycle markets on the entire planet. That’s not niche enthusiasm. That’s daily transportation at industrial scale. Understandably, from a financial point of view, that scale changes everything.
A 125cc commuter bike is inexpensive to develop compared to a battery electric crossover that depends on global lithium supply chains and shifting tax credits. It doesn’t require billion dollar battery plants or massive software ecosystems. It doesn’t get squeezed by US import tariffs in the same way a finished automobile does. Production is simpler. Costs are lower. Risk is spread across millions of units.
The margin per bike might not look dramatic on a spreadsheet, but when you multiply a modest profit by tens of millions of sales, you get something powerful. You get stability.
Meanwhile, the automotive side of the business is navigating a far more complex landscape. EV adoption in North America has cooled compared to earlier projections, battery costs remain stubborn, and regulatory targets continue to evolve. Honda’s decision to postpone its comprehensive EV supply chain buildout in Canada signals a recalibration rather than blind acceleration.
When you look at it this way, motorcycles are not just contributing. They are absorbing shock. Even with operating profit nearly cut in half to 591.5 billion yen ($3.8 billion), the company avoided slipping into overall losses because the two wheel division continues to generate steady returns in markets where demand is less cyclical and less dependent on incentives.
In dense urban regions where space is tight and incomes are lower, motorcycles make practical sense. They’re affordable, efficient, easy to maintain, and capable of delivering what effectively amounts to triple digit miles per gallon in real world use. They are economic tools first and lifestyle products second.
For western enthusiasts, it’s easy to think of Honda through the lens of Accords, Civics, and maybe the occasional CBR. Globally, the hierarchy flips. Honda is fundamentally a motorcycle company that also builds cars.
And that matters for riders in the US and Europe, because the profits generated by millions of small displacement commuters overseas help fund the machines we obsess over. The Africa Twin that crosses deserts. The CBR1000RR-R that chases lap times. The Grom that turns parking lots into playgrounds. Those halo products exist within a corporate structure supported by everyday scooters moving through Asian traffic.
So yes, the headlines say net income is down 42.2%, and yes, the auto division is bleeding under tariff pressure and EV recalibration. But step back from the quarterly noise and you’ll see a hidden, albeit steadier truth.
From Manila’s gridlock to India’s rural highways, Honda motorcycles are everywhere, humming along without drama, without headlines, and without apology. Right now, those machines are doing more than moving people. They’re keeping the company afloat.
Sources: Nikkei Asia, Honda
