News Releases 2005

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September 30, 2005

Honda Begins Operation of Third Motorcycle Plant in Indonesia

Bekasi, September 30, 2005 --- PT Astra Honda Motor, a Honda motorcycle production and sales joint venture in Indonesia, today held a ceremony to commemorate both the startup of production at its third plant, and the achievement of a key milestone -- cumulative production of 15 million units. An investment of approximately US$140 million (approximately 15 billion yen), annual production capacity of the third plant is approximately 1 million units. Astra Honda now has overall annual production capacity of 3 million units for the three plants.

"It is a great joy that our motorcycles have been enjoyed by 15 million customers in Indonesia," said Honda Motor Co., Ltd. Senior Managing Director and C.O.O. of Asia & Oceania Regional Operations, Satoshi Toshida at the ceremony. "The addition of this new plant enables us to continue fulfilling the needs of a rapidly growing market, and to make more customers happy by introducing products and technologies that exceed their expectations."

The motorcycle market in Indonesia is now the third largest in the world after only China and India. In 2004, the market size reached 4.27 million units, a 39% increase compared to 2003. For 2005, the size of the market is expected to grow 30%, to reach 5.5 million units. In 2004, Honda sold approximately 2.04 million units a 29% increase from 2003 primarily through sales of Cub-type motorcycles, including the Supra series and Karisma series. In 2005, Honda remodeled the best-selling Cub-type products, and sales in the first eight months of 2005 increased by 32% compared to the same period a year ago.

Astra Honda began mass production of engines at the new third plant in May, before the remaining processes became operational today. Now, the addition of 1 million units in annual production capacity better enables Honda to respond to the ongoing expansion of the market.

About PT Astra Honda Motor

Established : December 2000
Start of Operations : January 2001
Location : Jakarta City, Indonesia
Capital Investment : 185 billion rupiah
Capitalization Ratio : 50% Honda Motor Co., Ltd.
50% PT Astra International
Representative : Minoru Yamashita, President
Business : Motorcycle parts production, motorcycle engine and chassis assembly, motorcycle sales
Employment : Approx. 13,000 associates (as of September 30, 2005)
Annual Capacity : 3 million units
(1st plant: 1.1 million, 2nd plant: 0.9 million, 3rd plant: 1 million)
Production Models : Supra X125 (125cc Cub-type), Supra Fit (100cc Cub-type)
Mega Pro (156cc sports-type), Tiger 2000 (200cc sports-type), etc

About the New Plant

Production Start : September 30, 2005
Location : MM2100 Industrial Town, Bekasi
Area : Lot size: 30 hectares / Building size: 8.8 hectares
Total Investment : US$140 million (approximately 15 billion yen)
Annual Capacity : Approximately 1 million units