Honda recorded its first-ever operating loss of $1.2 billion in Q3 2024, but a 15% surge in small motorcycle and scooter sales—over 5 million units—helped offset the damage. The recovery is driven by affordable models like the Super Cub and Navi, popular in Asia and Africa.
Honda recorded its first-ever operating loss of $1.2 billion in Q3 2024, but a 15% surge in small motorcycle and scooter sales—over 5 million units—helped offset the damage. The recovery is driven by affordable models like the Super Cub and Navi, popular in Asia and Africa.
What’s behind Honda’s small motorcycle success?
Honda’s small-displacement motorcycles and scooters, such as the Super Cub, Navi, and Grom, start at around $3,000 (≈ SAR 11,250). These models are hugely popular in emerging markets like India, Indonesia, and Nigeria, where they serve as cheap daily transportation. In Q3 alone, Honda sold over 5 million two-wheelers globally, a 12% increase year-on-year.
Why are motorcycles outperforming cars for Honda?
While Honda’s automotive division struggles with slowing EV demand and rising development costs, its motorcycle segment offers higher profit margins and lower production costs. The shift toward urban mobility in congested cities further boosts demand for small bikes and scooters.
How does the loss affect Honda’s future?
Despite the operating loss, Honda remains profitable at the net income level thanks to its motorcycle and financial services divisions. The company expects a return to operating profitability in 2025, driven by new electric and hybrid motorcycle models. It is also cutting automotive costs through partnerships with GM and Sony.
What does this mean for the Gulf market?
In Saudi Arabia and the UAE, small motorcycles and scooters are gaining popularity among young riders and delivery workers. Models like the Honda PCX and ADV160 are particularly sought after. Honda plans to expand its dealer network in the region, with new models arriving in 2025 starting from SAR 15,000 (≈ $4,000).
How does Honda plan to recover?
Honda is investing $40 billion in R&D through 2030, focusing on electric and hybrid motorcycles. It plans to launch 10 new electric motorcycle models by 2026. Meanwhile, it will cut car production by 10% to improve efficiency.
Frequently Asked Questions
What was Honda's first operating loss?
Honda posted its first-ever operating loss of $1.2 billion in Q3 2024, but strong motorcycle sales helped offset the impact.
How much does a Honda small motorcycle cost in Saudi Arabia?
Prices for models like the PCX and ADV160 start at around SAR 15,000 (≈ $4,000), varying by model and dealer.
Is Honda planning electric motorcycles?
Yes, Honda plans to launch 10 new electric motorcycle models by 2026, backed by $40 billion in R&D spending through 2030.
Sources
- RideApart — Honda’s Tiny Motorcycles Are Doing Billion-Dollar Damage Control
