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

TOKYO, Japan, August 28, 2006 – Honda Motor Co., Ltd., today announced its automobile production, Japan domestic sales, and export results for the month of July 2006. Honda achieved a new record for overseas and worldwide production for the month of July.

<Production>
Japan domestic auto production in July increased 8.9% compared to the same month a year ago due to an increase in production of domestic and export models. It is the second consecutive month for a year on year increase in domestic production.

Overseas and worldwide production achieved a new monthly record in July, including record production in Europe and Asia.

Overseas production in July increased 4.4% compared to the same month a year ago due to a 26.4% production increase in Europe. It is the twelfth consecutive month for a year on year increase in overseas production.

Worldwide production increased 6.2% for the month of July, compared to the same month a year ago. It is also the twelfth consecutive month for a year on year increase in worldwide production.

<Japan Domestic Sales>
Total domestic auto sales declined 5.4% compared to the same month a year ago, due to a decline in new vehicle registrations (Total vehicle registrations not including mini vehicles). It is the fourth consecutive month, since April 2006, that domestic sales decreased compared to the same month a year ago.

New vehicle registrations declined 22.8% compared to the same month a year ago. This was primarily due to stabilizing sales of the Step Wagon and Air Wave. It is the fourth consecutive month, since April 2006, that new vehicle registrations declined compared to the same month a year ago.

Sales of mini vehicles increased 41.1% for the month of July compared to the same month a year ago, due to increased sales of Zest which was launched in March. It is the fifth consecutive month, since March 2006, for sales of mini vehicles to increase compared to the same month a year ago.

The Zest was Honda’s best selling vehicle in July, with sales of 9,526 units, ranking as the industry’s third best selling mini vehicle.The Fit ranked as Honda’s second best selling vehicle for the month of July. Fit was 8,535 units, the fourth best selling car among new vehicle registrations. The Step Wagon ranked as Honda’s third best selling vehicle for the month of July, with sales of 6,606 units, the ninth best selling car among new vehicle registrations. The Life was Honda’s fourth best selling vehicle for the month of July, with sales of 6,421 units, and it ranked as the seventh best selling vehicle car among mini vehicles in the industry.

<Exports from Japan>
Exports for the month of July increased 26.7% compared to the same month a year ago, due to an increase for North America and Europe. It is the second consecutive month for a year on year increase in exports.

Production
  July Year-to-Date Total
(Jan - July 2006)
Units
Vs.7/05
Units
Vs.2005
Domestic (CBU + CKD)
110,272
+8.9%
757,848
+0.5%
Overseas (CBU only)
164,352
+4.4%
1,334,961
+8.0%
Worldwide Total
274,624
+6.2%
2,092,809
+5.1%


Production by Region
  July Year-to-Date Total
(Jan - July 2006)
Units
Vs.7/05
Units
Vs.2005
North America
88,571
+0.7%
807,913
+4.1%
(USA only)
61,722
-1.4%
567,610
+5.9%
Europe
16,435
+26.4%
115,385
+4.6%
Asia
52,595
+1.5%
359,186
+17.8%
(China only)
27,231
-1.3%
189,024
+27.5%
Others
6,751
+48.5%
52,477
+16.8%
Overseas Total
164,352
+4.4%
1,334,961
+8.0%


Japan Domestic Sales
Vehicle type July Year-to-Date Total
(Jan - July 2006)
Units
Vs.7/05
Units
Vs.2005
Registrations
33,435
-22.8%
246,472
-10.4%
Mini Vehicles
22,851
+41.1%
161,297
+7.1%
Honda Brand Total
56,286
-5.4%
407,769
-4.2%


Export from Japan
  July Year-to-Date Total
(Jan - July 2006)
Units
Vs.7/05
Units
Vs.2005
North America
25,031
+18.7%
195,439
+21.5%
(USA only)
22,729
+15.9%
171,275
+18.5%
Europe
12,209
+14.2%
84,060
-3.2%
Asia
1,866
+46.2%
11,548
+15.1%
Others
12,752
+62.1%
73,062
+14.5%
Total
51,858
+26.7%
364,109
+13.3%