Honda Achieves Record European Automobile Sales in 2005, Further Growth Predicted in 2006.

Tokyo, Japan, Jan 19, 2006 - (JCN Newswire) - Honda announced that it had achieved record automobile sales in Europe, reaching an all time high of 285,924** units during the calendar year 2005 against an industry downturn of 0.7%*.

This is the second successive year that Honda has achieved record automobile sales in Europe and is an 11.8% increase on the previous year. The Jazz model has been a key driver in this record year with unit sales reaching 85,500 units. In addition, the success of the company's CR-V and FR-V models has been crucial.

Honda has now targeted a third record year in 2006 and has unveiled plans to sell 310,000 vehicles, which would represent a further 8% increase on 2005's total.

The new Civic 5 door model, which is now going on sale across Europe, will play a key role in achieving this ambitious growth target. Honda will also bring to market a new Civic Hybrid that has even better fuel efficiency, drivability, and practicality than the previous model.

The "Civic Type R Concept", which embodies Honda's "Fun-to-drive" ethos, will make a debut at the Geneva Motor Show at the end of February, to continue to meet the demand from many Honda customers to produce models that provide an extra level of excitement.

Honda also predicts that in this calendar year it will achieve the same level of production at its Swindon, UK plant as in 2005, which was 186,838 cars. The plant will be producing the new Civic 5-door and 3-door as well as the current CR-V. Further, Swindon has also started assembly of the i-CTDi diesel engine, which won "International Engine of the Year" in the 2.0 to 2.5-litre category this year. The plant will also start diesel cylinder-head machining in 2006 a move that will see Honda further localising production.

* ACEA figures

** Honda figures

About Honda Motor Co., Ltd.

Honda Motor Co., Ltd. (TSE: 7267)(NYSE: HMC)(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 http://world.honda.com.

Source: Honda Motor Co., Ltd.

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