Honda-The Power of Dreams
Honda Achieves Record Monthly Overseas and Worldwide Auto Production

TOKYO, Japan, June 26, 2006–Honda Motor Co., Ltd. announced its automobile production, Japan domestic sales, and export results for the month of May 2006. Honda achieved a new record for overseas and worldwide production for the month of May.

<Production>
Japan domestic auto production declined 1.9% for the month of May, compared to the same month a year ago, due to a decrease in production of domestic models. This is the first time in two months, since March 2006, that domestic production exceeded the total from the same month a year ago.

Overseas production increased 11.4% in May, due to increased production in North America and Asia. It is the tenth consecutive month, since August 2005, for an increase over the same month a year ago.

Worldwide production increased 6.8% in May, due to an increase overseas production. It is the tenth consecutive month, since August 2005, for an increase over the same month a year ago.

Overseas and worldwide production achieved a new monthly record in May, including record production in North America ,the U.S., Asia, and China.

<Japan Domestic Sales>
Total domestic auto sales declined 11.2% compared to the same month a year ago, due to a decline in new vehicle registrations (passenger car and light truck sales, not including mini vehicles). It is the second consecutive month, since April 2006, that total domestic sales declined from the same month a year ago.

New vehicle registrations declined 21.1% in May compared to the same month a year ago, due to decreased sales of popular models such as Fit, StepWGN and Air wave. It is the second consecutive month, since April 2006, that new vehicle registrations declined from the same month a year ago.

Sales of mini vehicles on the other hand, increased 4.1% for the month of May compared to the same month a year ago, due to increased sales of Zest which was introduced to the market in March and That’s. It is the third consecutive month, since March 2006, for sales of mini vehicles to increase compared to the same month a year ago.

Fit was Honda’s best selling vehicle on sales of 7,138 units, which ranked as the industry’s third best selling car in May among new vehicle registrations (not including mini vehicles). The Zest and Life ranked as Honda’s second and third best selling vehicles for the month.  Zest had sales of 6,985 units, the fifth best selling car among new mini vehicle in the industry, while Life had sales of 6,426 units, the industry’s sixth best selling mini vehicle.  

<Exports from Japan>
Auto exports from Japan declined 0.2% in May compared to the same month a year ago, due to sales declines for Europe. It is the first time in three months, since February 2006, that exports declined from the same month a year ago.

PRODUCTION, SALES, EXPORTS (May 2006)

Production
  May Year-to-Date Total
(Jan - May 2006)
Units
Vs.5/05
Units
Vs.2005
Domestic (CBU + CKD)
94,045
-1.9%
526,725
-2.8%
Overseas (CBU only)
203,020
+11.4%
964,353
+8.9%
Worldwide Total
297,065
+6.8%
1,491,078
+4.5%


Production by Region
  May Year-to-Date Total
(Jan - May 2006)
Units
Vs.5/05
Units
Vs.2005
North America
123,834
+8.8%
597,084
+4.9%
(USA only)
86,290
+10.8%
421,946
+7.8%
Europe
15,634
+0.8%
82,335
+1.3%
Asia
54,932
+21.3%
248,527
+22.6%
(China only)
26,112
+20.2%
129,383
+36.5%
Others
8,620
+13.0%
36,407
+12.2%
Overseas Total
203,020
+11.4%
964,353
+8.9%


Japan Domestic Sales
Vehicle type May Year-to-Date Total
(Jan - May 2006)
Units
Vs.5/05
Units
Vs.2005
Registrations
26,238
-21.1%
175,989
-5.2%
Mini Vehicles
22,263
+4.1%
108,824
-1.3%
Honda Brand Total
48,501
-11.2%
284,813
-3.8%


Export from Japan
  May Year-to-Date Total
(Jan - May 2006)
Units
Vs.5/05
Units
Vs.2005
North America
26,996
+18.6%
140,918
+22.3%
(USA only)
24,851
+26.8%
125,026
+22.3%
Europe
8,566
-41.9%
58,104
-10.4%
Asia
1,745
+24.6%
8,333
+10.2%
Others
10,963
+15.6%
48,094
+4.7%
Total
48,270
-0.2%
255,449
+9.4%