Honda Announces Next-Generation Powertrain Fuel-Efficiency Targets for Motorcycles, Automobiles, and Power Products.

Tokyo, Japan, July 20, 2005 - (JCN Newswire) - Honda Motor Co., Ltd. (TSE: 7267)(NASDAQ: HMC)(LSE: HNDA.L) has released an overview of its major next-generation power train technology and fuel economy targets for motorcycles, automobiles, and power products due to be introduced within the 9th Mid-term Plan (April 2005 to March 2008).

Motorcycles

Average fuel-efficiency for Honda motorcycles in 2004 represented an increase of 34.2% over 1995 figures thanks to the implementation of 4-stroke engines and fuel injection for smaller engine models.

Honda is now developing the world's top level low friction engine for the 100cc to 125cc class - the largest volume segment in the world. This achieves improved combustion efficiency by introducing two spark plugs while significantly reducing engine friction. With this new innovation, Honda aims to improve fuel economy for 100cc to 125cc engines by 13% compared to the level of 2005. In addition, Honda will adapt the Variable Cylinder Management (VCM) system technology already in use in passenger car engines for use in motorcycle engines. VCM delivers both higher fuel efficiency and superior performance. By deploying VCM technology on larger models to provide 4-stage control (2-cylinder/2-valve; 3-cylinder/2-valve; 4-cylinder/2-valve; and 4-cylinder/4-valve) over the number of combustion cylinders, Honda aims to increase fuel-efficiency by 30% compared to the level of 2005.

Motorcycle engine fuel efficiency goals

-Super low friction compact engine: 13% improvement (compared to 2005 engines)

-VCM large engine: 30% improvement (compared to 2005 engines)

Automobiles

Thanks to the introduction of light, compact, powerful engines such as the i-VTEC and i-DSI, average fuel-efficiency for Honda passenger cars in Japan in 2004, represented an improvement of 30.9% over 1995 figures.

Going forward, Honda will introduce a more advanced version of its existing VTEC (Variable Valve Timing and Lift Electronic Control System) technology with an engine that offers more sophisticated and precise control and continuously variable control of valve timing and lift. With this innovative control, fuel economy will be increased by 13% compared to the level of 2005. In addition, by increasing flexibility in the number of cylinders that are cut off and further advancing variable valve systems, Honda aims to improve the fuel efficiency of its VCM system by 11% compared to the level of 2005.

(*assuming that all increases in engine combustion efficiency are used for improved fuel efficiency)

Automobile engine fuel efficiency goals

-Advanced VTEC engine: 13%* improvement (compared to 2005 regular i-VTEC engine)

-Advanced VCM-equipped engine: 11% improvement (compared to 2005 V-6 engine)

Power Products

Honda's average fuel efficiency in its power products represented approximately a 28% improvement over 1995 figures through the introduction of GX and GC series engines which use OHV (Over Head Valve) and OHC (Over Head Cam) technologies and a cleaner, 4-stroke, 360-degree inclinable engine -the M4 series- to the handheld market where 2-stroke engines were the mainstream.

Honda will continue to expand application of STR (Self Tuning Regulator) technology which maintains consistent rpm levels regardless of engine load, through a series of engines and aims to improve fuel economy by 15% compared to the level of 2005. In addition, Honda has a goal to improve fuel efficiency by 20% over 2005 levels for its revolutionary high expansion ratio engine that variably controls the engine's stroke length during the intake/compression and expansion/exhaust processes.

Power products fuel efficiency goals

-Further application of STR technology: 15% improvement (compared to 2005 engines)

-High-expansion rate engine: 20% improvement (compared to 2005 engines)

Fuel Cell Vehicles 

By 2009, Honda aims to begin leasing motorcycles powered by hydrogen fuel cells.

As the world's leading engine maker, Honda's core product-development strategy is to reduce CO2 emissions by increasing the fuel-efficiency of its products. Toward this end, Honda will improve overall engine efficiency by improving combustion efficiency and reducing energy losses. In addition, Honda will increase the overall efficiency of its hybrid systems by combining it with more efficient engines and electric motors. Honda will also continue to be a world leader in fuel cell technology, continuing to improve the world's most advanced fuel cell stack.

Introducing advanced new powertrains that feature ever-greater efficiency, Honda's goal is to lead the world in fuel economy in every product segment, including motorcycles, automobiles, and power products.

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