Press Release

Honda Announces Conslidated Financial results for First Fiscal Half

11/19/96

Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results for the
Fiscal Second Quarter and the First Half Ended September 30, 1996


TOKYO, Nov. 15 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal
second quarter and half-year ended September 30, 1996.

Second Quarter Results

Honda's consolidated net income for the fiscal second quarter ended
September 30, 1996, was 49.1 billion yen ($443 million), increasing
300.6% from the corresponding three months last year. Net income per
Common Share for the quarter amount to 50.49 yen ($0.45) compared to
12.61 yen for the corresponding period a year ago. Net income per
American Share, each representing two Common Shares, totaled 100.98
yen ($0.91) compared to 25.22 yen for the corresponding period of the
previous year.

Consolidated net sales and other operating revenue for the quarter
under review amounted to 1,247.8 billion yen ($11,242 million),
increasing 23.5% from the corresponding quarter a year ago. Honda's
overall businesses showed favorable results. In particular strong
gains in automobile sales in Japan and major overseas markets
contributed to the increase.

Consolidated operating income for the quarter totaled 91.9 billion yen
($829 million), increasing 253.6% from the second quarter of the
previous fiscal year. Operating income showed significant growth due
mainly to higher revenue and the Company's continued cost cutting
efforts, together with positive effects of the depreciation of the
yen.

Honda's consolidated income before income taxes for the quarter
increased 293.3%, to 86.3 billion yen ($778 million). Consequently,
despite an increase in Honda's income taxes, net income showed a
significant improvement.

Reviewing the second quarter by business segment, Honda's motorcycle
unit sales declined 0.6%, to 1,396,000 units, whereas revenue
increased 22.2%, to 167.6 billion yen ($1,511 million). The increase
in revenue was primarily due to the depreciation of the yen.

Unit sales of automobiles totaled 531,000 units and revenue amounted
to 989.3 billion yen ($8,913 million) during the three-month period,
increasing 17.7% and 25.3%, respectively. Increased sales in major
automobile markets and the weakened yen were the principal reasons for
this increase.

Unit sales of power products were up by 18.5%, totaling 615,000 units.
Revenue from other businesses, including the power product business,
increased 8.6%, amounting to 90.8 billion yen ($818 million),
primarily due to overall favorable sales of power products and an
increase in Honda's financial services revenue.

First Half-Year Results

Consolidated net income for the first six months ended September 30,
1996 totaled 94.9 billion yen ($855 million), a 292.1% increase from
the fiscal first half last year. Net income per Common Share for the
first half-year totaled 97.4 yen ($0.88) compared to 24.84 yen for the
corresponding period a year ago. Net income per American Share, each
representing two Common Shares, amounted to 194.80 yen ($1.75)
compared to 49.68 yen for the first half last year.

Consolidated net sales and other operating revenue for the six months
totaled 2,478.5 billion yen ($22,330 million), an increase of 26.8%
from the fiscal first half last year. This increase in revenue
resulted primarily from higher sales volume of automobiles in Japan
and major overseas markets. In addition, the continued fall in the
value of the yen positively affected revenue. The yen averaged at
108.33 yen = U.S.$1 in the Tokyo foreign exchange market during the
first half-year period, 17.6% lower than during the corresponding
period last year.

Consolidated operating income for the first half-year increased
207.6%, amounting to 160.6 billion yen ($1,447 million), due primarily
to increased income as a result of favorable automobile sales in Japan
and overseas markets. Honda's continued cost cutting efforts and the
positive impact of the depreciation of the yen were also major
contributing factors to this significant increase.

Consolidated income before income taxes and net income for the first
six months ended September 30, 1996, amounted to 162.4 billion yen
($1,463 million) and 94.9 billion yen ($855 million), up 297.8% and
292.1%, respectively, from the corresponding period last year. The
Company's consolidated income statement data for the first half-year
period included a pre-tax gain of 10.4 billion yen and an after-tax
gain of 5.0 billion yen on the nonmonetary exchange of common shares
of The Bank of Tokyo, Ltd. ("BOT") held by Honda for common shares of
The Bank of Tokyo-Mitsubishi, Ltd. following the merger of BOT and The
Mitsubishi Bank, Limited on April 1, 1996. The unrealized gain on the
Company's investment in BOT shares was previously included in a
separate component of stockholders' equity as of March 31, 1996.

Reviewing the six-month period by business segment, the motorcycle
unit sales rose 1.2% from a year ago, totaling 2,713,000 units and
revenue increased 20.4%, amounting to 340.0 billion yen ($3,063
million). In addition to the positive effects of the weaker yen, the
increased in revenue was attributable to increased sales of
motorcycles in Europe and Latin America.

Honda's overall automobile unit sales totaled 1,046,000 units, 16.6%
higher than the six month period a year before. The automobile
business revenue for the first half-year increased 30.0%, totaling
1,966.2 billion yen ($17,714 million). Higher sales in major
automobile markets, in particular the increased sales of the CR-V,
Orthia and Step WGN (Wagon models in Japan contributed to the
increases.)

Unit sales of power products totaled 1,104,000 units, an increase of
12.2% over the corresponding period of the previous year. Honda's
other businesses registered a 7.6% increase in revenue, amounting to
172.2 billion yen ($1,552 million). Revenues generated from the
Company's power product business and financial services showed steady
increases.

Revised Forecasts of Fiscal Year ending March 31, 1997

Taking into account the expected increase in sales of Honda's
automobiles in Japan and North America, along with the expected
positive effects of the depreciation of the yen, the Company's
management has revised upward its forecasts of consolidated net sales
and other operating revenue and net income for the current fiscal year
ending March 31, 1997 as follows:

.                     Revised forecasts            Forecasts
.                                             made in August 1996
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(In billions of Yen)
Net sales and other
operating revenue        5,100                     4,900
Net income                 200                       160

(In Yen)
Average exchange
rate assumed         107=U.S.$1 yen            105=U.S.$1 yen
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This announcement contains forward-looking statements within the
meaning of Section 21E of the U.S. Securities Exchange Act of 1934.
Honda's actual results could differ materially from those contained in
these forward-looking statements as a result of numerous factors
outside of Hondas control, including general economic conditions in
Honda's principal markets and foreign exchange rates between the
Japanese yen and other major currencies, as well as other factors
detailed from time to time in Honda's reports filed with the U.S.
Securities and Exchange Commission.