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Honda Motor’s JPY 520 Billion EV Loss — Is The Transition Getting Too Expensive?

Honda Motor Company Limited reported record operating profit of JPY 530.7 billion for the first quarter of fiscal year ending March 31, 2027, driven largely by strong performance in the motorcycle business and North American automobile sales. The motorcycle segment achieved its highest-ever quarterly operating profit, fueled by robust sales in India and Brazil. Despite challenges in the Chinese automobile market, unit sales increased overall, mainly supported by North America, delivering an automobile operating profit of JPY 192.1 billion with an operating margin of 5.0%. The Financial Services business contributed JPY 105.8 billion to operating profit, while Power Products and other segments recorded a slight operating loss. Honda maintained a strong financial position with net cash of approximately JPY 3.3 trillion excluding financial services. Free cash flow from non-financial businesses was JPY 128.3 billion, with operating cash flow after R&D adjustment at JPY 737.1 billion.