News Releases 2006

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June 26, 2006

First Honda Programmed Fuel Injection Motorcycle to be Launched in India

New Delhi, June 26, 2006 --- Hero Honda Motors Ltd., a motorcycle production and sales joint venture in India between Honda and Hero Group, today announced the sales launch of Glamour FI, which is the first motorcycle in India equipped with PGM-FI (Honda's Programmed Fuel Injection).

Glamour FI, based on the stylish 125cc motorcycle Glamour, has better fuel efficiency and ease of engine start, thanks to PGM-FI. Riders can see its high fuel efficiency by a digital real-time fuel economy indicator. Its design is more refined, with its engine integrated with a black color scheme and a unique FI logo.

Hero Honda began production of motorcycles in 1985. Its current annual production capacity is 3,450,000 units combined at its two plants in Dalhera and Gurgaon. This September, the annual production capacity at Dalhera will be expanded to 1,950,000 units from 1,500,000 units by adding a new line. Moreover, its annual capacity will increase to 4,400,000 units in 2007 when a third plant with 500,000 units of annual production capacity will be constructed.

The overall motorcycle market in India has been growing rapidly, reaching approximately 7,300,000 units in 2005, a 15% increase from 2004. The market is expected to grow further in 2006, up to approximately 8,500,000 units, a 17% increase from 2005. Total sales of Hero Honda and Honda's sole subsidiary, Honda Motorcycle and Scooter India (Private) Ltd. established in 1999, reached approximately 3,371,000 units in 2005, an 18% increase from 2004.

Honda plans to install PGM-FI on most of its motorcycles worldwide by the end of 2010 to reduce emissions. Following similar model introductions in Thailand and Indonesia, Honda is providing the environmentally-prominent PGM-FI model to the growing Indian market, thus strengthening environment-friendly activities in its global motorcycle business.

【Hero Honda Motors Ltd.】
Established : January 1984
Start of Production : May 1985
Location : New Delhi
Capital Investment : 399,375,000 rupee
Capitalization Ratio : 26% Honda Motor Co., Ltd.
26% Hero Group
Representative : B.M.L. Munjal, Chairman
Business : Production and sales of motorcycles and scooters
Employment : Approx. 4,200 associates (as of May 2006)
Annual Capacity : 3,450,000 units (as of May 2006)
Production Models : Splendor, Passion, Achiever, Karizma, Glamour, Pleasure etc.
Sales results in 2005 : Approx. 2,818,000 units
【Honda Motorcycle & Scooter India (Private) Ltd.】
Established : August 1999
Start of Production : May 2001
Location : New Delhi, India (Gurgaon area, Haryana state)
Capital Investment : 3,000,000,000 rupee
Capitalization Ratio : 100% Honda Motor Co., Ltd.
Representative : Yukihiro Aoshima, President
Business : Production and sales of motorcycles and scooters
Employment : Approx. 3,000 associates (as of May 2006)
Annual Capacity : 870,000 units (as of May 2006)
Production Models : Activa, Dio, Eterno, Unicorn, Lead (For export) etc
Sales results in 2005 : Approx. 553,000 units