Honda Engineering Establishes Local Operations in China

Tokyo, Japan, July. 15, 2004 - (JCN Newswire) - Honda Motor Co., Ltd.,
today announced that its engineering subsidiary, Honda Engineering Co.,
Ltd., plans to establish a local subsidiary in China. The new operation
will enable Honda Engineering to better support Honda's manufacturing
facilities in China to smoothly achieve capacity expansion, new model
launches, and other activities necessary for their growth. 

The new subsidiary will seek to facilitate the efficient use of
resources to create high quality production facilities by providing
technical support close to those locations, including advancement and
improvement of mass production equipment and local production of high
quality stamping dies.

Honda Engineering is responsible for Honda's production engineering and
supports the optimization of Honda's manufacturing operations worldwide
by providing expertise in the development of manufacturing strategies,
and the development, design, manufacturing and installation of
production systems and equipment. The new China subsidiary will be Honda
Engineering's fourth overseas operation, following North America (U.S.),
Europe (UK) and Asia (Thailand). 

Honda is currently strengthening Guangzhou Honda's ability to make full
use of its annual production capacity of 240,000 units, and the
expansion of Dongfeng Honda, which became operational in April of this
year, to a planned annual production capacity of 120,000 units. In order
to respond to customers's needs on a timely manner in the rapidly
growing Chinese market, Honda will simultaneously enhance the speed and
quality of its local manufacturing operations. 



[About New Company]
Company Name:  Honda Engineering China Co., Ltd. (tentative)
Location:      Guangzhou Economic & Technological Development District 
President:     Shigeo Suzuki
Activities:    Advancement/improvement of mass production facilities and
equipment
               in China, supporting new model launches, and production
of stamping
               dies
Capital:       USD 8.18 million (67.72million R.M.B. based on exchange
rate of
               8.278RMB per 1 USD) 
Capital Ratio: 80% Honda Engineering Co., Ltd.
               20% Honda Motor (China) Investment Co., Ltd.
Establishment: August 2004 (tentative)



About Honda Motor Co., Ltd.

Honda is one of today's 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 17 million customers annually.For further
information, please visit the Honda Motor Co., Ltd. home page at:
?Company_Show.asp?compid=639 <http://?Company_Show.asp?compid=639> 

Contact
Honda Motor Co., Ltd.
Masaya Nagai
masaya_nagai@hm.honda.co.jp
+81-3-5412-1512