News Releases 2004

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May 20, 2004

Sundiro Honda Begins Construction of New Plant in Tianjin

Tianjin, May 20, 2004 -- Sundiro Honda Motorcycle Co., Ltd., Honda's motorcycle production and sales joint venture in China, today announced that it has begun construction of a new plant in Tianjin with the goal of improving efficiency of production and logistics over the existing Tianjin facility that it will replace. An investment of 150 million yuan, the new plant will be completed by the end of 2004 and will have an annual production capacity of 300,000 units. 

The new 53,000 square meters plant will be located on a 150,000 square meters lot seven kilometers southeast of the existing facility. The existing plant was built in 1984 and acquired by China Tianjin Honda Motors Co., Ltd. (now Sundiro Honda Motorcycle Co., Ltd.) when the joint venture between Honda and Tianjin Motors Group Inc. was established in 1992. The layout of the new plant will accommodate all production processes on one floor. Currently, the various production processes are spread over six buildings on three floors. In addition, synchronization of engine assembly and motorcycle assembly will make it possible to reduce inventory and improve efficiency of production and logistics while the new plant will utilize equipment from the existing Tianjin plant. 

Sundiro Honda has plants in Tianjin, Shanghai, and Hainan. The Honda Wave, a 100cc Cub-type motorcycle is produced at the existing Tianjin plant. A commemorative ceremony was held today at the Tianjin plant to celebrate cumulative production of 1 million units in conjunction with the introduction of a new model, Deputy, 125cc Cub-type motorcycle designed for the Chinese market. 

The motorcycle market in China is expected to exceed 12 million units in 2004, making it the largest in the world. In order to better meet the needs of Chinese customers, Honda also plans to launch the Today model, a 50cc scooter produced by Sundiro Honda, in China this summer. This model has been exported to and well received in Japan. In addition, another new model developed through efforts of Honda's local R&D in Shanghai will be introduced this fall.

<About Sundiro Honda Motorcycle Co.,Ltd.>

Establishment : September 2001
Location : Tianjin, China
Capital : USD 99,565,000
Capitalization Ratio : 50% Honda Motor Co., Ltd.
    47.33% Hainan Sundiro Holding Co., Ltd.
    2.67% Tianjin Motors Group, Inc.
Representative : Atsuyoshi Hyogo (Chairman)
Business Activities : Production and sales of motorcycles
Employment : 6,400 associates (as of April 2004)
Production models : M-LIVING (125cc motorcycle), Wave (100cc Cub),
  : V-MEN (125cc motorcycle), DEPUTY(125cc Cub)
  : Export only:Today (50cc scooter), Dio(50cc scooter) and others.