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Honda Inside the Global Playbook: How Smart Cost Cuts in ICE & BEVs Could Rewrite Its Future!

Honda Motor Company Limited’s recent financial performance presents a complex picture involving both opportunities and challenges. On the positive side, Honda’s Motorcycle operations achieved record-high unit sales, operating profit, and operating margin, driven by strong sales in Brazil and the Philippines despite declines in Vietnam. This segment’s operating profit reached JPY 368.2 billion, marking a year-over-year increase of JPY 42.4 billion. The financial strength of this segment has been a key contributor to Honda’s overall financial health, compensating partially for challenges in other areas. Conversely, Honda’s Automobile operations faced multiple challenges. While there was a positive impact from price revisions, the segment reported a loss of JPY 72 billion, down sharply by JPY 351 billion year-over-year. Contributing factors included declines in unit sales due to semiconductor shortages, weaker performance in China and ASEAN markets, and a substantial hit from EV-related and one-time expenses.