Yoko Yamaguchi's questions to Honda Motor Co Ltd (HMC) leadership • Q1 2026
Question
Yoko Yamaguchi from Toyo Keizai Magazine questioned the drivers behind the motorcycle division's outstanding 19.9% operating profit margin and asked for clarification on whether the Q1 EV-related expenses were in line with expectations, given the full-year forecast was not raised more significantly.
Answer
Eiji Fujimura, CFO, attributed the strong motorcycle profitability to a balanced regional portfolio, with robust performance in high-margin markets like Brazil and Vietnam offsetting weakness elsewhere. He explained that Q1 EV-related expenses were actually higher than anticipated due to a JPY 50 billion provision for lost IRA subsidies and California credits. This raised the expected full-year EV impact from JPY 600 billion to JPY 650 billion, tempering the overall forecast.