Honda Motor Co. claims increased revenue and sales for the second fiscal quarter ending September 30, 2013. Overall automotive and motorcycle operations income is up 46% and net sales are up 27.3%. The motorcycle segment (which includes motorcycles, all-terrain vehicles and parts) claims global sales growth of 29.7% for Q2 and 21.6% for the first half of the fiscal year.
Honda designates five geographical regions in its report: Japan, North America, Europe, Asia and Other Regions. North America includes the United States, Canada and Mexico and within that region sales improved by 39% for Q2, totaling 30% growth for the first half of the year. North America showed the largest percentage growth in the quarter, with Asia (Thailand, Indonesia, China, India and Vietnam) second-best at 26.2% growth in Q2. For the six-month period Asia nearly equals North America in gains, netting 29.7% growth. Motorcycle segment net sales worldwide grew by a combined 27.3% and are up 21.6% for the first half of the fiscal year.
Honda’s fiscal report doesn’t indicate which particular models have driven sales in the region, but the North American regions have seen several new models introduced over the past two quarters. The most prominent new releases being the three-model CB500 lineup and the Grom 125. Combined motorcycle and ATV sales for North America in Q2 are up 8000 units over 2012, to 68,000 total, with the first-half totals up 11,000 units to 130,000 total. Honda also claims a year over year decrease in ATV sales for the region, down from 30,000 to 28,000 in the quarter and 59,000 to 49,000 for the first six months. That result marks unit sales for motorcycles in NA up dramatically for the quarter, up from 30,000 to 40,000 and for the year increasing from 60,000 to 81,000.
Honda’s aim to expand its take of the massive Indian market was made clear in 2013 when Honda Motorcycle & Scooter India announced its intention to build a third production plant in the country. The new plant will increase production capacity by 64% and is set to be completed by the end of the 2014 fiscal year. This decision was announced after the brand notched 39% sales growth in India for fiscal year 2012-2013, during a time when motorcycle sales in the country dropped slightly overall.
China is another growth market receiving attention, with Honda announcing its new CBR300R at the 2013 China International Motorcycle Trade Exhibition. A rival to the recently released Kawasaki Ninja 300, the new CBR300R stands to be a popular mount throughout the world, and plans are currently set for global production to occur in Thailand. At the same event, Honda also disclosed its intention to expand sales of larger displacement motorcycles within China since “the motorcycle market in China, which is the largest in the world, has been increasingly diversifying in recent years, and the number of customers who enjoy motorcycles for recreation is also increasing,” according to Seiji Kuraishi, Chief Operating Officer for Honda’s Chinese Operations.