Honda Motor Company’s Indian subsidiaries have reported sharply divergent financial performances for FY25, highlighting the contrasting trends in the two-wheeler and passenger vehicle markets.
Honda Motorcycle and Scooter India (HMSI) reported a strong year, with revenue rising 23% to Rs 39,970 crore and net profit jumping 38% to Rs 3,727 crore. The company’s expenses increased to Rs 34,973 crore, reflecting higher production volumes but controlled costs.
The two-wheeler maker, which remains the country’s second-largest, continued to close in on market leader Hero MotoCorp. HMSI’s domestic sales grew 18% year-on-year to 5.33 million units in FY25, up from 4.53 million units a year earlier. Its market share stood at 25.37%, compared with Hero MotoCorp’s 28.84%.
The performance was supported by steady demand for models such as the Activa and Shine, as well as recovery in both rural and urban markets. The company also benefited from a richer product mix and improved operating efficiencies, helping it sustain margins despite higher input costs.
Honda Cars India (HCIL), the group’s passenger vehicle arm, posted a more subdued set of numbers. Revenue rose 5% to Rs 17,545 crore, but net profit slipped 9% to Rs 604 crore due to weaker margins and rising costs. Expenses increased to Rs 16,619 crore during the year.
HCIL’s sales volumes dropped 24% to 65,925 units in FY25 from 86,584 units in FY24, underlining the company’s struggle to sustain momentum in a market dominated by larger rivals and new entrants. The company remains outside the top five passenger vehicle makers.
Although models such as the Elevate SUV and Amaze sedan contributed to sales, overall performance was weighed down by competitive pricing pressures and limited presence in fast-growing segments.