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Daelim

Honda sales for 2006

Some very impressive figures from Honda showing sales growth across the Asia-Oceania region of which Australia makes some contribution.

Allen Drysdale

Honda enjoys record sales across all product categories in Asia & Oceania

Honda's motorcycle operations :

Honda's motorcycle sales reached new levels during 2006. The company expects to serve a record 12.7 million motorcycle customers worldwide, with more than 73% from Asia-Oceania. In Thailand, A.P. Honda expects to serve 1.32 million customers this year.

Sales were driven by the launch of new automatic transmission models, which met with strong acceptance from customers in Thailand, Indonesia and Vietnam. To improve rider safety, Honda introduced motorcycles equipped with a Combined Brake System, starting in Thailand and Vietnam this year. This system distributes an appropriate balance of front and rear wheel braking force using the left brake lever and will be introduced in other countries in the future.

With the Asia-Oceania demand for motorcycles expected to increase to 21.7 million units in 2007, Honda continues to expand production capacity. During 2006, in Pakistan and the Philippines new factories opened with annual capacity to produce 500,000 motorcycle units each. In India, Honda expanded production capacity by 730,000 units. In 2007, in Vietnam production capacity will be expanded to one million units and in India Hero Honda Motors will establish the third plant bringing Honda's total annual production capacity to 5.4 million units.

Honda also continued with its leadership in rider safety training even at dealers' shops, by introducing the "Riding Trainer" machine in Australia, Indonesia and Vietnam. This equipment is already installed at its safety riding school here in Thailand and will be introduced at the dealer shops in early 2007.

With its comprehensive product lineup and increased production capacity, Honda aims to increase Asia-Oceania sales to about 11.2 million units in 2007. In Thailand, Honda expects sales of 1.4 million units in 2007.

Honda's power product operations:

Thailand is Honda's largest power products export base in the world. This year, 1.87 million units were produced for domestic and export markets, mainly North America, Europe and Asia-Oceania. Annual production volume in Thailand should be around two million units in 2007, with cumulative production reaching 10 million units in the second half of next year.

Honda's automobile operations:

In 2006, Honda automobiles experienced a fourth consecutive year of record sales. The company expects to serve a record 320,000 customers, an 6% increase over last year even with difficult market conditions in some countries. Thailand should achieve sales of 67,000 units this year, a 15 percent increase over last year.

The all-new Honda Civic, launched in late 2005 in Thailand, was a key reason for Honda's success. The new Civic has received many Car of the Year awards in countries including Thailand, Indonesia, Malaysia, New Zealand, Taiwan and the other major countries in the world. Civic sales in Thailand is expected to grow by 60 percent from last year being the best seller model in compact car segment this year.

Honda also started to roll out the Asia-Oceania launch of the all-new third-generation CR-V with its more "Advanced and Emotional" direction. The next-generation CR-V has received good customer acceptance. Here in Thailand, Honda has already received more than 2,000 bookings after its launch on November 27th. The new CR-V will be introduced in more regional markets during 2007.

With this strong product lineup, Honda expects its regional sales of 360,000 units in 2007, a 13% increase over this year. Thailand is targeting sales of 70,000 vehicles.

To support this sales plan Honda continues to enhance its manufacturing facilities. In 2006, production in Vietnam started with an annual capacity of 10,000 units and annual production capacity in Pakistan has been expanded to 50,000 units. In India, production capacity will be doubled to 100,000 units in 2007 and with a plan to introduce a small-size vehicle and construction of a second plant, Honda aims to produce and sell more than 150,000 units of automobiles by the end of 2010. Other markets in the region are expected to expand in line with their economic growth which means Honda expects to have region-wide automobile production capacity of over 500,000 units by 2010.

2006 Honda Year-End Review For Asia Oceania

Overview :

The Asia-Oceania region is of growing strategic importance to Honda.

                                  2006 Worldwide                        2006 Asia-Oceania
Motorcycle                 12.7 million customers                9.3 million customers
Automobile                 3.55 million customers                0.32 million customers
Power Products          6.4 million customers                  0.81million customers

Total                          22.65 million customers               10.43 million customers (46 percent)

published 20/12/2006

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