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Odyssey The all-new, third-generation Odyssey
is equipped with a 2.4-liter DOHC i-VTEC engine and newly developed CVT+7 speed
mode transmission, providing superior driving performance. The new low-floor platform
ensures spacious interior. For Japanese market.
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FISCAL 2004 RESULTS
In fiscal 2004, unit sales of automobiles rose 3.3%, to 2,983,000 units, due mainly to strong automobile sales in Asia and North America and increased sales of parts for automobile production to Guangzhou Honda Automobile Co., Ltd., an affiliate of Honda. Sales increased 2.4%, to ¥6,592.0 billion, due to increased overseas sales and other factors, which compensated for the negative impact of the yen's appreciation against the U.S. dollar. Operating income declined 20.4%, to ¥438.8 billion, and the operating margin was 6.7%.
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UNIT SALES
Years ended March 31
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UNIT SALES
Years ended March 31
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NET SALES
Years ended March 31
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NET SALES
Years ended March 31
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JAPAN
Total domestic automobile demand in Japan remained largely unchanged, at 5,880,000 units.
Honda's unit sales in Japan declined 15.7%, to 716,000 units. Despite a decline
in sales of some models, including the Fit subcompact, which has now been
on the market for two years, we enjoyed strong sales of the all new Life
minicar and Odyssey mini-van.
New products launched in Japan included the Element light truck, which
was developed and produced in the United States and imported to Japan utilizing
the "Made by Global Honda" network. We also launched the all-new Inspire,
featuring a newly developed, environmentally friendly 3.0l i-VTEC engine equipped
with Variable Cylinder Management (VCM) technology, as well as the world's first
Collision Mitigation Brake System (CMS).
In September 2003, we completed a full model change of the Life minicar,
delivering a functional and unique design and enhanced safety and environmental
performance by incorporating a new crash-compatible body frame to provide greater
safety in collisions, as well as offering top-class fuel economy. In October,
we unveiled the all-new Odyssey, which incorporates a newly developed low-floor
platform and combines both spaciousness and performance. For two consecutive months
from December 2003, the Odyssey ranked number one in monthly vehicle registrations
in Japan.
By strengthening our performance in the mini-van segment, we are improving the model mix of sales and in turn steadily increasing unit prices.
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NORTH AMERICA
In calendar 2003, automobile demand in the United States remained
high, totaling 16.68 million units.
In the passenger car segment, sales of Honda's flagship model in North America,
the Accord, remained high. Also, the newly released Acura TSX sports
sedan and the Acura TL luxury performance sedan, which underwent a full
model change in October 2003, both showed steady sales. At the same time, demand
for light truck models in North America has continued to increase, with sales
of Honda's light trucks, notably the Element, Pilot and Acura MDX,
also increasing significantly.
As a result, overall sales in North America increased 2.4%, to nearly 1,558,000
units, an all-time record, despite a downturn in the Canadian market.
In 1982, Honda began manufacturing the Accord at its plant in Marysville,
Ohio, becoming the first Japanese automobile manufacturer to establish local production
of passenger cars in the United States. Since then, we have steadily expanded
our production capacity with the addition of auto plants in Alliston, Canada,
in 1986; East Liberty, Ohio, in 1989; and Lincoln, Alabama in 2001. We now have
a very high local production ratio in North America, with approximately 80% of
Honda automobiles sold in the United States being made locally.
In fiscal 2004, cumulative unit sales of Honda cars and trucks in North America
reached the 20 million unit mark. Cumulative production output in the U.S. also
increased, surpassing the 10 million unit mark, while production in Canada reached
the 3 million mark. In April 2004, we commenced production at the second production
line of our Alabama plant of the Pilot SUV, a model that has been popular
since it first appeared on the market. As a result, we now have an annual production
capacity in North America of 1.4 million units.
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EUROPE
In Europe, overall automobile demand remained almost unchanged
in calendar 2003 at 16.5 million units. Nevertheless, Honda's unit sales jumped
11.6%, to 231,000 units. This was due mainly to a twofold surge in sales of the
Accord series, boosted by the launch of the Accord Tourer in April
2003, and steady demand for Honda's top selling Civic models and Jazz
subcompact, which has remained popular since its launch.
Demand for diesel-powered automobiles continued to grow in Europe. Following the
success of the diesel-powered Civic, which was introduced in 2002, at the
end of calendar 2003 we launched a new Accord model, equipped with the
first Honda-made i-CTDi diesel engine. Sales of the dieselpowered Accord,
which combines a top-class engine quietness and excellent fuel efficiency with
high performance, substantially boosted sales in fiscal 2004.
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ASIA
Our automobile business in Asia expanded considerably in fiscal
2004. Total unit sales of automobiles and automobile parts sold by Honda and its
subsidiaries to affiliates soared 66.3%, to 341,000 units.
In China, the passenger car market continued to expand, with sales of more than
two million vehicles recorded during calendar 2003. Guangzhou Honda, an affiliate
of Honda, recorded healthy sales of the Accord and the Odyssey,
and also launched the Fit Saloon subcompact in September 2003. As a result,
unit sales rose a tremendous 98.1%, to 117,000 units. To meet the rapidly growing
demand, Guangzhou Honda doubled its annual production capacity, from 120,000 units
to 240,000 units, in February 2004.
Following its successful launch in Thailand, we launched the all-new City
in Indonesia, Malaysia, the Philippines, Pakistan and India, starting in April
2003. In the ASEAN region, sales rose 47.3%, to 190,000 units, due largely to
the launch of the Jazz subcompact in November 2003.
We raised the annual production capacity of our plant in Thailand from 70,000 units to 120,000 units. In August 2003, we began production of manual transmissions in the Philippines, and in the following month we started making automatic transmissions in Indonesia. Both plants are now shipping products to Europe and throughout Asia. Through this, we are able to further utilize the "Made by Global Honda" network to a greater effect.
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OTHER REGIONS
Unit sales in other regions grew 30.5%, to 137,000 units,
thanks mainly to increased sales in Brazil, Turkey and the Gulf countries.
In Brazil sales increased considerably due to the commencement of production and
sales of the Fit in April 2003, our second locally produced model after
the Civic.
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Inspire Featuring the world's first CMS and Honda's
E-Pretensioner seatbelt safety system, the Inspire offers a 3.0-liter V6
i-VTEC engine with Honda's newly developed VCM technology for ample power and
fuel economy.
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Acura TL Fitted with the newly developed 3.2-liter
V6 VTEC engine, this sedan offers 270 horsepower of maximum output. Developed
and manufactured in the United States as a mainstay model in the Acura channel,
it also meets California's strict LEV-2 ULEV exhaust emission regulations.
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OUTLOOK FOR FISCAL 2005
For fiscal 2005, the total unit sales of automobiles is expected
to rise 9.1%, to 3,255,000 units.
In Japan, we will focus on strengthening our presence in the mini-van market.
Having launched the Elysion in May 2004, we plan, in July, to introduce
the new-concept Edix, a six-passenger mini-van that seats three people
in the front and three in the back. We also plan to launch an all-new Legend,
featuring the new Super Handling All-Wheel Drive (SH-AWD) system, which will give
the driving experience Honda buyers have come to expect. Honda is not only strengthening
the competitiveness of its products, in terms of business operations, it is also
raising customer satisfaction and operational efficiency, as well as reinforcing
its sales and service capabilities. For fiscal 2005, we forecast a 7.5% increase
in domestic unit sales, to 770,000 units.
In North America, we will increase sales of the Pilot, which went into
production on the second line of the Alabama plant in April 2004. We will also
strengthen our presence in the ever-expanding light truck segment by reinforcing
sales of existing models. In the passenger vehicle segment, we will launch the
all-new Acura RL in the fall of 2004. This will be followed in the second
half of fiscal 2005 by the Accord Hybrid, which will feature a V6 engine
with Honda's Integrated Motor Assist (IMA) system to provide high performance
and deliver the same level of fuel economy as the Civic. For fiscal 2005,
we project unit sales in North America of more than 1,565,000 units, up 0.4%.
In Europe, we expect to strengthen our position in the expanding diesel automobile
market by launching a diesel-powered CR-V in a number of European nations
in fiscal 2005, in addition to the highly praised diesel-powered Accord. Also,
in the fall of 2004 we plan to unveil a new-concept model. Accordingly, we project
a 10.4% increase in unit sales in Europe, to 255,000 units.
Fiscal 2005 is expected to be a year of major expansion in Asia, where we forecast
a 49.6% jump in unit sales, to 510,000 units. In China, where rapid growth is
expected to continue, we forecast an increase in sales by Guangzhou Honda. Dongfeng
Honda Automobile (Wuhan) Co., Ltd., an affiliate based in Wuhan, also began production
and sales of the CR-V sport utility vehicle in April 2004. In addition,
Honda Automobile (China) Co., Ltd., an affiliate that will be Honda's third automobile
production base in China, will begin production of the Jazz , exclusively
for export to Europe and elsewhere in Asia, from the end of 2004.
Outside of China, we anticipate solid growth in Thailand and India, where sales
are expected to continue increasing. Sales of the Jazz, which was launched
in November 2003, and the Civic, which underwent a major face-lift in the
first half of 2004, are expected to pave the way for yet another substantial increase
in sales for fiscal 2005.
In other regions, we project unit sales of 155,000 units, up 13.1% from fiscal 2004. In addition to steady demand in Brazil, we forecast increased sales in the growing Turkish market.
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Accord Production of the Accord in China began when
Guangzhou Honda commenced operations in 1999. Since then, sales have been solid,
and local procurement has risen from 60% to 70%. The Accord offers both
quality and driving performance, and meets Euro 3 emission regulations.
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