Honda reports record sales of motorcycles and automobiles in Thailand and ASEAN

Customers in Thailand and across Southeast Asia responded in record numbers to Honda’s range of advanced technology mobility products in 2003, according to information released recently by Asian Honda Motor Co., Ltd., Honda’s Bangkok-based ASEAN Regional Headquarters.

At the same time, Honda completed building its comprehensive ASEAN-wide automobile production network, opening new automobile plants in Indonesia and Malaysia, a new manual transmission plant in the Philippines and the region’s first automatic transmission plant in Indonesia. The Company also expanded the annual production capacities of its two manufacturing facilities in Thailand. Thai Honda Manufacturing Co., Ltd. increased its motorcycle capacity by 400,000 units from one million to 1.4 million units, and its power product capacity from 1.1 million to 1.3 million units while Honda Automobile (Thailand) Co.,Ltd completed its expansion from 70,000 to 120,000 units. With a combined annual capacity of 2.7 million motorcycles and power products Thai Honda Manufacturing is now Honda’s largest single engine production plant in the world.

Speaking at a year-end press conference before the end of 2003, Mr. Satoshi Toshida, Managing Director and Chief Operating Office (Asia-Oceania) of Honda Motor Co., Ltd. and President and Chief Executive Officer of Asian Honda Motor Co., Ltd., said Honda’s motorcycle sales in the ASEAN region hit a record 3.5 million units with Indonesia, the Philippines, Thailand and Vietnam all reporting record levels. In Thailand A.P. Honda expects to achieve sales of 1.27 million, up 27 percent over last year’s one million units.

According to Mr. Toshida, Honda’s ASEAN automobile sales grew by 44 percent to 130,000 units, up from 90,000 units in 2002 with new sales records achieved in Indonesia, Thailand and Singapore. Honda Automobile (Thailand) Co., Ltd. reported a second consecutive year of record sales of 69,000 units, up 27 percent from 54,266 units last year.

Honda’s intensified manufacturing activities in Thailand, its largest production base in Asia outside Japan, were, reflected in soaring exports. Total "Made by Global Honda" in Thailand exports increased by 108 percent, from Baht 18,114 million in 2002 to Baht 37,700 million this year, driven primarily by a large increase in CBU automobile exports, which surged from 11,300 units in 2002 to nearly 40,000 units in 2003, and by a 218 percent increase in exports of power products which jumped from nearly 248,000 units in 2002 to over 788,000 units in 2003.

Speaking about Honda’s plans for 2004 in Thailand and ASEAN Mr. Toshida said the Company would implement four key customer-focused strategies to enhance its competitiveness. "We will accelerate our human resource development and quicken the pace of technology transfer into the region; we will maximise the utilisation of our recently completed ASEAN production supply network; we will confirm Honda’s global leadership in environmental responsibility which goes well beyond compliance with existing regulations; and we will push forward with our goal of ‘safety for everyone’," he said.

As a result of these strategies in 2004, Honda will invest Baht 850 million to expand the operations of Honda R&D Southeast Asia Co., Ltd. in Thailand, which will become the focal point for Honda’s motorcycle product development in the ASEAN region, and Honda’s third largest motorcycle R&D operation, and Baht 317 million to establish the Honda Thailand Technical Training Centre, to train primarily automobile sales and service personnel. In addition Thai Honda Manufacturing Co., Ltd. will expand its annual power product production capacity by a further 300,000 units, to 1.6 million units.

Speaking about Honda’s sales targets for 2004 Mr Toshida said Honda’s ASEAN motorcycle sales are expected to reach 3.8 million of which 1.3 million units would be in Thailand.

For automobiles, Honda plans to sell 160,000 units in ASEAN, up 23 percent from this year with Thailand expecting to contribute 78,000 units.

Power product sales in ASEAN are expected to reach 354,000 in 2004, a 17 percent increase over 2003, with 135,000 units being sold in Thailand.

Honda’s exports from Thailand in 2004 are expected to increase 26 percent to Baht 47,500 million with automobile components and power products accounting for most of the increase.

Worldwide, in 2004 Honda aims to serve 19 million motorcycle, automobile and power product customers an increase of 12 percent over the 16.98 million customers served in 2003.

Honda is one of the world’s leading producers of advanced technology mobility products. It is also the world’s largest producer of fuel-efficient, low emission internal combustion engines and the largest manufacturer of motorcycles.