| New Delhi, January 15, 2002 --- Honda Motor Co., Ltd., together with Hero Honda
Motors Ltd., a joint venture company, and subsidiary Honda Motorcycle & Scooter
India (Private) Ltd. (HMSI), today announced that they would bring forward the
two-wheeler business schedule in India by one year and target sales of 1.75 million
units in fiscal 2002.
Hero Honda sold 1.3 million motorcycles last year, becoming India's leading two-wheeler
maker, mainly due to the popularity of its best-selling model SPLENDOR, which
sold 719,000 units, and the new model PASSION. The company hit cumulative production
of 5 million units in October, 2001.
HMSI sales are growing, thanks to its first model, the ACTIVA, which was launched
last July and sold 32,000 units last year. In the middle of this year, HMSI will
also launch a new concept scooter appealing to younger customers.
Anticipating the great potential of the Indian two-wheeler market, HMSI has arranged
to obtain land adjacent to the factory in order to expand production capacity.
By 2003, HMSI will more than double production capacity, from 120,000 units to
Honda will also enhance and strengthen safety and environment protection in India,
while Hero Honda and HMSI will continue to cooperate in research, development
and production in India.