Yoko Yamaguchi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
Yoko Yamaguchi of Toyo Keizai questioned if the Q1 EV-related expenses were in line with full-year expectations and sought reasons for the motorcycle segment's exceptionally strong 19.9% operating profit margin.
Answer
CFO Eiji Fujimura explained that Q1 EV expenses were higher than a simple quarterly run-rate due to one-time write-offs for suspended development projects and provisions for future losses after IRA subsidies were removed. Regarding the motorcycle business, he credited the record profitability to strong performance in high-margin markets like Brazil and Vietnam, which more than compensated for a slowdown in India. He noted that in Brazil, demand currently outstrips supply, supporting healthy pricing and profitability.