News Releases 2001
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CorporateIndiaApril 12, 2001
New Honda Subsidiary Starts Two-Wheeler Production in India

New Delhi, India, April 12, 2001 --- Honda Motorcycle & Scooter India (Private) Ltd. (HMSI), (Headquarters: New Delhi, India; President Haruo Takiguchi), a new subsidiary of Honda Motor Co., Ltd., began production today as its first 100cc scooter, the Honda Activa, rolled off the assembly line.

HMSI has begun production in record time, taking only 18 months since the company was established and only 15 months since plant construction started.

The new Honda Activa scooter meets the basic needs of Indian users, fitted with a clean four-stroke engine that achieves good fuel economy of 50km/liter on public roads in India. The scooter also features more durable tire tubes, making them resistant to punctures even on rough roads and a newly developed technology "CLIC --- the Convenient Lift up Independent Cover" which can be easily removed from the body for repairs.

The Activa also provides a new scooter concept, with a stylish contemporary design and large load capacity, features that cannot be found in existing scooter models.

Activa sales will begin in July.

Honda President and CEO Hiroyuki Yoshino, who attended the HMSI line-off, said:
"It's good start to be able to begin production within a very short space of time after the establishment of the company. The scooter business in India has been stagnant because models with novel or original ideas have not been available. The Activa will introduce fresh, current trends to this scooter market."

The two-wheeler* market in India is the second largest in the world after China. Last year, about 3.87 million two-wheelers were sold in India, of which about 1.11 million units were scooters.

Aided by its two-wheeler business experience throughout the world, the company plans to offer more scooter models with high marketability and after-sales service via HMSI.

Honda's joint venture company Hero Honda is the leading two-wheeler manufacturer in India. Honda will combine the strengths of both Hero Honda's handling of motorcycles and HMSI's handling of scooters to promote awareness of the Honda group in India.

* The vast majority of two-wheel vehicles marketed in India are either motorcycles, defined as those ridden with the legs astride the machine, or scooters, ridden with the legs together.

Outline of Honda Motorcycle & Scooter India (Private) Ltd.
Established : October 1999
Capital : 2 billion rupees (about 5.8 billion yen)
Capitalization ratio : Honda Motor Co., Ltd. 100%
Location : Gurgaon district in the suburbs of Delhi, India
Representative : President Haruo Takiguchi
Number of employees: 327
Production capacity : 100,000 units/year
(* 1 Rupee = 2.9 yen as of April 5, 2001)

Activa Honda Motorcycle & Scooter India (Private) Ltd.
Activa Honda Motorcycle & Scooter India (Private) Ltd.
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