Honda-The Power of Dreams
Honda Sets 10th Straight All-Time First Six Months Record for Overseas Production

TOKYO, Japan, July 24, 2006 – Honda Motor Co., Ltd. announced a summary of automobile production, Japan domestic sales, and export results for the months of June and the first six months of 2006. Honda set an all-time record of worldwide auto production for the period of first six months of 2006.

<Production>
June 2006
Japan domestic production for the month of June increased 8.8% compared to the same month a year ago due to an increase in production of export models. It is the first time in two months since April 2006, that domestic production increased compared to the same month a year ago.

Overseas production in June increased 6.7%, mainly due to production increases in North America and Asia. It is the eleventh consecutive month since August 2005, that overseas production increased over the same month a year ago.

Worldwide production in June increased 7.4%. It is the eleventh consecutive month since August 2005, that worldwide production increased over the same month a year ago.

Domestic, overseas and worldwide production as well as production in North America, the U.S.,  Europe, Asia and China achieved a new all-time monthly record for June production.

Calendar Year 2006
Total domestic production for the first six months of the year decreased 0.8% from the same period a year ago, due to a decrease in production of domestic models. This is the first time in three years since 2003, that domestic production declined compared to the same period of the previous year.

Overseas production increased 8.5% from the same period a year ago, mainly due to production increases in North America and Asia. This is the tenth consecutive year, since 1997, that overseas production exceeded the total production of the same period of the previous year.

Worldwide production increased 5.0% from the same period a year ago. This is the eighth consecutive year, since 1999, that worldwide production exceeded the total production of the same period of the previous year.

Honda set all-time first six months records for overseas and worldwide production, as well as production in North America, the U.S., Europe, Asia, and China.

<Japan Domestic Sales>
June 2006
Domestic auto sales of 66,670 units for the month of June represents a 5.0% decline compared to the same month a year ago, due to decreased sales in new vehicle registrations (passenger car and light truck sales). It is the third consecutive month, since April 2006, that domestic sales decreased compared to the same month a year ago.

New vehicle registrations (passenger car and light truck sales) totaled 37,048 units for the month of June, a 19.5% decline compared to the same month a year ago.  This was primarily due to stagnating demand for the Step Wagon and Air Wave. It is the third consecutive month since April 2006, that sales of new vehicle registrations declined compared to the same month a year ago.

Sales of mini-vehicles totaled 29,622 units for the month of June, a 22.9% increase compared to the same month a year ago.  This was due to increased sales of the Zest and the That’s. It is the fourth consecutive month since March 2006, that sales of mini-vehicles increased over the same month a year ago.

The Life was Honda’s best selling vehicle in June with sales of 9,707 units, and it was the industry’s fourth best selling mini vehicle. The Fit ranked as Honda’s second best selling vehicle for the month of June.  Fit was 9,482 units, the third best selling car among new vehicle registrations (not including mini vehicles). The Zest ranked as Honda’s third best selling vehicle for the month of June with sales of 8,611 units, the sixth best selling car among mini vehicle in the industry. The Step Wagon was Honda’s fourth best selling vehicle for the month of June with sales of 8,130 units, and it ranked as the fourth best selling vehicle in the industry.

Calendar Year 2006
Domestic auto sales for the first half of 2006, totaled 351,483 units, a 4.0% decline compared to the same period a year ago, due to decreased new vehicle registrations (passenger car and light truck sales). This is the fourth consecutive year since 2003, that domestic sales declined compared to the same period of the previous year.

New vehicle registrations (passenger car and light truck sales, not including mini vehicles) for 2006 decreased 8.1% compared to the same period of previous year, mainly due to drop  in sales of Fit and Odyssey due to stabilizing demand.  It is the fourth consecutive year since Calendar Year 2003, that new vehicle registrations declined compared to the same period of the previous year.

Sales of mini vehicles for the first half of 2006 increased 3.0% compared to the same period of the previous year due to increased sales of the Zest. It is the third consecutive year since 2004, that total mini vehicle sales increased compared to the previous year.

<Exports>
June 2006
Exports for the month of June increased 20.8% compared to the same month a year ago, mainly due to increase in export to North America. This is the first time in two months, since April 2006, that exports for the month of June exceeded the total exports of the same month a year ago.

Calendar Year 2006
Total exports for the first half of 2006 increased 11.3% compared to the same period of the previous year, mainly due to increased exports for North America. It is the fifth consecutive year since calendar year 2002, that exports increased over the same period of the previous year. .


PRODUCTION, SALES, EXPORTS (June 2006)

Production
  June 2006 Year-to-Date Total
(Jan-June 2006)
*1st Quarter
Fiscal Yyear 2006
Units
vs.6/05
Units
vs.2005
Units
vs.2005
Domestic
(CBU+CKD)
120,851
+8.8%
647,576
-0.8%
317,993
+4.4%
Overseas
(CBU only)
206,188
+6.7%
1,170,601
+8.5%
594,605
+7.2%
Worldwide Total
327,039
+7.4%
1,818,177
+5.0%
912,598
+6.2%
*(April/01/2006 - June/30/2006)

Production by region
  June 2006 Year-to-Date Total
(Jan-June 2006)
*1st Quarter
Fiscal Yyear 2006
Units
vs.6/05
Units
vs.2005
Units
vs.2005
North America
122,258
+2.7%
719,342
+4.5%
356,333
+3.0%
(USA only)
83,942
+2.5%
505,888
+6.9%
247,567
+4.1%
Europe
16,615
+4.1%
98,950
+1.7%
47,081
-2.6%
Asia
58,064
+15.2%
306,591
+21.1%
167,057
+21.1%
(China only)
32,410
+25.2%
161,793
+34.1%
88,357
+29.3%
Others
9,251
+16.4%
45,718
+13.2%
24,134
+8.3%
Overseas Total
206,188
+6.7%
1,170,601
+8.5%
594,605
+7.2%
*(April/01/2006 - June/30/2006)

Japan Domestic Sales
Vehicle type June 2006 Year-to-Date Total
(Jan-June 2006)
*1st Quarter
Fiscal Yyear 2006
Units
vs.6/05
Units
vs.2005
Units
vs.2005
Registrations
37,048
-19.5%
213,037
-8.1%
91,948
-16.8%
Mini Vehicles
29,622
+22.9%
138,446
+3.0%
75,289
+12.4%
Honda Brand Total
66,670
-5.0%
351,483
-4.0%
167,237
-5.8%
*(April/01/2006 - June/30/2006)

Export from Japan
  June 2006 Year-to-Date Total
(Jan-June 2006)
*1st Quarter
Fiscal Yyear 2006
Units
vs.6/05
Units
vs.2005
Units
vs.2005
North America
29,490
+20.2%
170,408
+21.9%
85,222
+29.0%
(USA only)
23,520
+3.5%
148,546
+18.9%
72,055
+21.0%
Europe
13,747
+21.8%
71,851
-5.6%
31,640
-20.2%
Asia
1,349
+12.4%
9,682
+10.5%
4,786
+16.8%
Others
12,216
+22.0%
60,310
+7.8%
34,929
+12.5%
Total
56,802
+20.8%
312,251
+11.3%
156,607
+11.2%
*(April/01/2006 - June/30/2006)