|Ukraine, June 1, 2006 – Honda Motor Europe Ltd. (HME) announced that it has established a fully-owned subsidiary in Ukraine, with the aim of driving sales of Honda products in the country. Honda Ukraine LLC (HUA) will deal with the import and wholesale of automobiles, power equipment and parts in Ukraine, a market which is expected to expand significantly as a result of predicted economic growth. HUA is expected to commence business from the end of July 2006.
The Ukrainian economy has seen steady growth since the country’s independence in 1991 and it is estimated that the GDP per capita will reach US$3,500 in 2010. The steel and machinery industries have been central to this progress, as well as foreign investments coming into the country.
The Ukrainian automobile market (including domestic and imported vehicles), underpinned by this favorable economy, is growing rapidly. In 2005 this market stood at about 265,000 units, a more than 300% increase since 2000, and it is expected to reach about 500,000 units by 2010.
Honda has been marketing automobiles in Ukraine through a distributor since 1992. HUA aims to enhance Honda’s sales capacity in the country by establishing a sales network which can handle the future expansion of the market. Honda’s Ukrainian automobile sales increased by 30% to 2,200 units in 2005 and the company plans sales of about 5,500 units during 2007, anincrease of 150% on 2005.
Outline of new company
| Name of the company:
|| Honda Ukraine LLC (HUA)
|Date of establishment:
||May 3, 2006
Business operation expected to start from the end of July 2006
||3 million euros
||Honda Motor Europe Ltd. 100%
|Number of employees:
||Import and wholesale of automobiles, power equipment and parts, as well as after-sales service