News Releases 2003

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May 26, 2003

Honda's Cumulative Motorcycle Production in Indonesia Reaches 10 Million

Jakarta, Indonesia, May 26, 2003 --- P.T. Astra Honda Motor, Honda's joint venture company in Indonesia responsible for motorcycle production and sales, announced that they have rolled out their 10 millionth motorcycle. Indonesia is the first country outside Japan where Honda has achieved this level of motorcycle production.

Honda started motorcycle production in Indonesia in 1971 through a technical cooperation agreement with P.T. Federal Motor. In December 2000, Honda established P.T. Astra Honda Motor, which is a joint venture company with P.T. Astra International based on an equal equity ratio. The company integrated the functions of parts manufacturing, engine and body assembly, and wholesale activities. P.T. Astra Honda Motor started operations in January 2001.

The motorcycle market in Indonesia continues to expand, with the total market for 2003 forecast to reach 2.6 million units. P.T. Astra Honda Motor launched new models, the Karisma and Kirana, in 2002, helping the company to post record sales of 1.437 million units. In 2003, further sales expansion is targeted with the launch of new products that meet customers' needs.

P.T. Astra Honda Motor "Karisma D"

P.T. Astra Honda Motor "Karisma D"

Outline of P.T. Astra Honda Motor

December 2000
Start of operations
January 2001
Location of head office
Jakarta City
185 billion rupiah
Capitalization ratio
50% Honda Motor Co., Ltd., 50% P.T. Astra International
Minoru Yamashita
Business activities
Manufacture of motorcycle components; assembly of engine and body
Number of employees
Approx. 8,400
Production capacity
7,000 units/day
Nine models, including the Karisma, Kirana and Supra