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First Honda Programmed Fuel Injection Motorcycle to be Launched in India

New Dehli and Tokyo, Japan, June. 26, 2006 - (JCN Newswire) - Hero Honda
Motors Ltd., a motorcycle production and sales joint venture in India
between Honda and Hero Group, announced the sales launch of Glamour FI,
which is the first motorcycle in India equipped with PGM-FI (Honda's
Programmed Fuel Injection). 

Glamour FI, based on the stylish 125cc motorcycle Glamour, has better
fuel efficiency and ease of engine start, thanks to PGM-FI. Riders can
see its high fuel efficiency by a digital real-time fuel economy
indicator. Its design is more refined, with its engine integrated with a
black color scheme and a unique FI logo. 

Hero Honda began production of motorcycles in 1985. Its current annual
production capacity is 3,450,000 units combined at its two plants in
Dalhera and Gurgaon. This September, the annual production capacity at
Dalhera will be expanded to 1,950,000 units from 1,500,000 units by
adding a new line. Moreover, its annual capacity will increase to
4,400,000 units in 2007 when a third plant with 500,000 units of annual
production capacity will be constructed. 

The overall motorcycle market in India has been growing rapidly,
reaching approximately 7,300,000 units in 2005, a 15% increase from
2004. The market is expected to grow further in 2006, up to
approximately 8,500,000 units, a 17% increase from 2005. Total sales of
Hero Honda and Honda's sole subsidiary, Honda Motorcycle and Scooter
India (Private) Ltd. established in 1999, reached approximately
3,371,000 units in 2005, an 18% increase from 2004.

Honda plans to install PGM-FI on most of its motorcycles worldwide by
the end of 2010 to reduce emissions. Following similar model
introductions in Thailand and Indonesia, Honda is providing the
environmentally-prominent PGM-FI model to the growing Indian market,
thus strengthening environment-friendly activities in its global
motorcycle business. 

About Hero Honda Motors Ltd.

Established:           January 1984
Start of Production:   May 1985 
Location:              New Delhi 
Capital Investment:    399,375,000 rupee 
Capitalization Ratio:  26% Honda Motor Co., Ltd.
                       26% Hero Group 
Representative:        B.M.L. Munjal, Chairman 
Business:              Production and sales of motorcycles and scooters
Employment:            Approx. 4,200 associates (as of May 2006 ) 
Annual Capacity:       3,450,000 units (as of May 2006 ) 
Production Models:     Splendor, Passion, Achiever, Karizma, Glamour,
Pleasure etc.
Sales results 2005:    Approx. 2,818,000 unit

About Honda Motorcycle & Scooter India (Private) Ltd.

Established:           August 1999 
Start of Production:   May 2001
Location:              New Delhi, India (Gurgaon area, Haryana state)
Capital Investment:    3,000,000,000 rupee
Capitalization Ratio:  100% Honda Motor Co., Ltd. 
Representative:        Yukihiro Aoshima, President
Business:              Production and sales of motorcycles and scooters 
Employment:            Approx. 3,000 associates (as of May 2006) 
Annual Capacity:       870,000 units (as of May 2006)
Production Models:     Activa, Dio, Eterno, Unicorn, Lead (For export)
Sales results 2005:    Approx. 553,000 units 

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (LSE: HNDA.L) is one of the
leading manufacturers of automobiles and power products and the largest
manufacture of motorcycles in the world. Honda has always sought to
provide genuine satisfaction to people worldwide. The result is more
than 120 manufacturing facilities in 30 countries worldwide, producing a
wide range of products, including motorcycles, ATVs, generators, marine
engines, lawn and garden equipment and automobiles that bring the
company into contact with over 19 million customers annually. For more
information, please visit

For further information, please visit the Honda Motor Co., Ltd. home
page at: <>