Honda’s Tiny Motorcycles Are Doing Billion-Dollar EV Damage Control

[1srelluc]

https://www.rideapart.com/features/795543/honda-first-operating-loss-evs-blame/

Honda just posted what could become one of the biggest financial gut punches in the company’s modern history. The automaker reportedly took an operating loss of around $2.55 billion for the fiscal year ending March 2026, largely because its EV plans spiraled into a very expensive reality check.

And now? The company’s motorcycles are helping save the day. Again.

Honda recently canceled three planned EV launches for North America while staring down massive restructuring costs tied to electric vehicle development, supplier compensation, factory investments, and halted production programs. The company apparently expects EV-related losses to keep bleeding into fiscal year 2027, too.

But while the car side of the business is busy setting money on fire trying to survive the EV transition, Honda’s motorcycle division is quite literally carrying the entire company on its back. As reported by Nikkei Asia, Honda expects motorcycles to help drag the company back into operating profitability next fiscal year. Not sports cars. Not EV crossovers. Not autonomous tech. Motorcycles.

Scooters, commuters, underbones, small-displacement bikes, and practical two-wheel transportation are now some of the most important pieces keeping one of the world’s largest mobility companies financially stable. And when you look at the bigger picture, it makes perfect sense. In markets like India, Indonesia, Vietnam, Thailand, and the Philippines, motorcycles aren’t niche enthusiast machines. They’re daily transportation. Millions of people rely on them to get to work, move goods, navigate traffic, and survive brutal fuel prices and crowded cities.

The company sells motorcycles at a scale that most Western audiences probably can’t even imagine. We’re talking about entire cities running on 110cc and 125cc scooters wearing Honda badges. While the automotive industry argues over charging infrastructure and battery supply chains, Honda’s bike division continues pumping out affordable gas-powered transportation that people actually buy in enormous numbers.

I think Toyota's the only traditional automaker that isn't getting burned by the EV slump. They got everything from being made fun of to outright defaming in the mainstream press a few years ago for refusing to develop an EV line and instead concentrating on hybrids. But man that strategy really paid off for them.

 

[my2¢]

It strikes me that many auto companies became jealous of Tesla. Their CEO's had to be worrisome about covering their butts as Tesla's shareholder value was increasing through the roof this past decade.

I've seen headlines that EV sales are gaining strength in Europe. It figures with the war's effect on their already high gasoline prices. The bet for auto companies now is whether that momentum will be sustained.

 

[Zincwarrior]

It strikes me that many auto companies became jealous of Tesla. Their CEO's had to be worrisome about covering their butts as Tesla's shareholder value was increasing through the roof this past decade.

I've seen headlines that EV sales are gaining strength in Europe. It figures with the war's effect on their already high gasoline prices. The bet for auto companies now is whether that momentum will be sustained.

Tesla has been taking it in the shorts also on the ev front.

 

[my2¢]

Tesla has been taking it in the shorts also on the ev front.

Tesla has regained some momentum since Musk distanced himself from Trump, but Tesla indeed has some work to do as BYD has come on strong.

As seen below Tesla's corporate market value still dwarfs Toyota's by a factor of over four, $1.41 trillion compared to $300.87 billion as investors hold on to their belief.