Honda's future, much like its past, rests on two wheels

Motorcycles remain cash cow, but shift toward EVs poses a threat

20211112N Honda motorcycle rental

Motorcycles account for more than a third of Honda Motor's earnings, beating out automobiles.

RYO ASAYAMA, Nikkei staff writer

TOKYO -- Honda Motor has become increasingly reliant on its founding motorcycle business to make money, which will have major implications for its emergent electric vehicle and space ventures.

Honda now projects consolidated net profit will decline 16% to 555 billion yen ($4.86 billion) for the current fiscal year ending March, reversing a previous forecast of a gain. This comes as the global chip shortage triggered production cuts in automobiles.

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