Honda Holds Opening Ceremony of New Motorcycle Plant in Argentina.

Tokyo, Japan, Aug 2, 2006 - (JCN Newswire) - Honda Motor de Argentina S. A. held the opening ceremony August 1, of its new motorcycle plant in the city of Florencio Valera, Buenos Aires. Argentine President Dr. Carlos Kirchner attended the ceremony, along with Tetsuo Iwamura, Managing Director and COO of the South America Regional Operation of Honda Motor Co., Ltd.

The new 7,000m2 plant was built on a 68,000m2 lot with a capital investment of approximately US$1 million. The plant has an annual production capacity of 15,000 units, with the potential to increase capacity to 45,000 units in the future with additional equipment and manpower. Beginning with the production of the C105 Biz (Cub type), a popular model in the local market, a second model will be introduced into production in the near future. The new plant began pilot production in late June, and is already operating at a mass production level.

The overall motorcycle market in Argentina has been growing rapidly since 2002, when the market size was approximately 13,000 units, and the total market reached approximately 187,000 units in 2005, a 192% increase from 2004. Honda's sales reached approximately 41,000 units in 2005, an increase of 123% from approximately 18,000 units in 2004. Honda plans to sell 70,000 units in 2006. The motorcycle market in Argentina is expected to continue to grow and become the second largest motorcycle market in South America in the near future. Honda will continue its efforts to meet the needs of this growing market by providing high quality products to achieve customer satisfaction.

Honda Motor de Argentina S.A.

Establishment:              August 1978
Capital Investment:         ARS 16.319 million
Capitalization Ratio:       95.4% Honda Motor Co., Ltd.
                            4.6% Honda Automoveis do Brasil Ltda.
Location:                   Buenos Aires (Head office),
                            Florencio Valera (Plant), Argentina
Representative:             Kenzo Yoshino, President
Business:             Production of Honda motorcycles; Import and sales
                            of Honda motorcycles, automobiles, and power
                            products
Employment:                 126 associates (as of July, 2006)
Production:                 C105Biz (Cub type)
Production capacity:        15,000 units annually

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.

Contact:

Honda Motor Co., Ltd.
Media Inquiries
[e-mail]
[phone]

Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K.