Honda Sets All-Time Annual Records for Overseas and Worldwide Automobile Production

Tokyo, Japan, Jan 26, 2006 - (JCN Newswire) - Honda Motor Co., Ltd. has announced a summary of its automobile production, domestic sales, and export results for the month of December as well as for the calendar year 2005. Honda set all-time calendar year records for worldwide production, as well as overseas production.

Production

December 2005: Domestic production for the month of December declined 9.0% compared to the same month a year ago due to a decrease in production of both Japan domestic and export models. This is the first time in two months, since October 2005, that domestic production declined compared to the same month a year ago.

Overseas production in December increased 7.9%, due largely to production increases in North America, where the second line of the Alabama plant reached full capacity in October 2005.

Worldwide production in December increased 0.8% due to increased overseas production. It is the fifth consecutive month, since August 2005, for an increase over the same month a year ago.

Calendar Year 2005: Total domestic production for 2005 increased 1.6% compared to 2004, due largely to an increase in production of export models. This is the second consecutive year, since 2004, that domestic production exceeded the total from the previous year.

Overseas production for 2005 increased 10.8% compared to 2004, due mainly to production increases in North America and Asia. This is the ninth consecutive year, since 1997, that overseas production exceeded the total from the previous year.

Worldwide production for 2005 increased 7.2% compared to 2004, due to an increase in domestic and overseas production. This is the ninth consecutive year, since 1997, that worldwide production exceeded the total from the previous year.

Honda set all-time calendar year records for worldwide production, as well as overseas production, and production in North America, the U.S. and Asia.

Japan Domestic Sales

December 2005: Total domestic sales was 52,488 units for the month of December, a 22.2% decline compared to the same month a year ago, due to decreased sales of both passenger cars and light trucks and mini-vehicles. It is the second consecutive month for domestic sales to decline compared to the same month a year ago.

Sales of passenger cars and light trucks totaled 35,040 units for the month of December, a 17.8% decline compared to the same month a year ago. This was due primarily to stabilizing demand for the Fit. It is the first time in four months, since August 2005, that sales of passenger cars and light trucks declined compared to the same month a year ago.

Sales of mini-vehicles totaled 17,448 units for the month of December, a 29.7% decline compared to the same month a year ago. This was due primarily to stabilizing demand for the Life. It is the second consecutive month for sales of mini-vehicles to decline compared to the same month a year ago.

Fit was the best selling vehicle for Honda and the industry (9,162 units) for the month of December. The Life (8,553 units, fourth best selling mini-vehicle in the industry) and all-new StepWGN (6,997 units, third best selling car in the industry), which underwent a full model change in May, were Honda's second and third best selling vehicles for the month.

Calendar Year 2005: Total domestic sales for 2005, totaled 714,030 units, a 3.9% decline compared to 2004, due to decreased sales of both mini-vehicles and passenger cars and light trucks. It is the first time in two years, since 2003, that domestic sales declined compared to the prior year. Sales of new models introduced in 2005, such as StepWGN and Airwave, grew steadily. However, overall domestic sales declined due to stabilizing demand for Fit, Odyssey and Life. Sales of passenger cars and light trucks and mini-vehicles declined in 2005 compared to 2004. It is first time in two years, since 2003, that sales declined compared to the prior year.

Exports

December 2005: Total exports for the month of December totaled 51,518 units, a 2.0% decline compared to the same month a year ago, due to a slight decline in each region.

Calendar Year 2005: Total exports for 2005 of 522,891 units, were up 1.8% compared to the prior year, due mainly to increased exports for North America, Latin America and Africa. Exports to North America increased due to strong sales of Acura RL (known as Legend in Japan), which underwent a full model change in fall 2004, and Acura TSX (known as Accord in Japan).