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Ask people in the United States about Honda and most will probably say it's a car company. Ask people around the world, and most will tell you it's a motorcycle company. Honda's recently announced annual financial results show a similar dichotomy.
Yes, Honda is still the largest motorcycle company in the world, even if its car business overshadows motorcycles here in the United States. And even though Honda brings in more revenue by selling cars globally than selling motorcycles, the latest annual report for its fiscal year that ended March 31 shows that the motorcycle business is stronger than ever while the car business slumped last year.
Honda lumps side-by-sides and ATVs into its motorcycle segment, but still, the vast majority of units are small two-wheelers sold around the world. In total, Honda reported motorcycle segment sales of 20.6 million units for fiscal year 2025, a new record surpassing the 18.8 million units the previous year. The company projects it will set another record in the 2026 fiscal year with sales of 21.3 million units. Honda expects weakness in Japan and Europe, and to a lesser degree in North America, will be more than offset by growth in Asia and the rest of the world. Sometime this year, the company expects to surpass total production of 500 million motorcycles in company history.
Honda not only sold more units in the past year, but also made more profits. Operating margin in the motorcycle segment rose to 18.3%, one percentage point higher than the year before. Meanwhile, Honda's margins in the car business dropped to just 1.7%, down from 4.1% the previous year.
Because of those higher margins, Honda's profits were actually higher in the motorcycle segment than in the car segment. The company reported ¥663.4 billion ($4.5 billion) profit in the motorcycle segment and ¥243.8 billion ($1.7 billion) in the automobile segment. That's despite the fact that revenue from car sales was four times higher than revenue from motorcycle segment sales.
Bottom line: Honda is not only still the world's largest motorcycle manufacturer, but it's also becoming ever more profitable at it. Mostly by selling small motorcycles to the huge markets in countries such as India, Indonesia, the Philippines, Brazil, and the rest of the world.
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