January 28, 2009 - Honda Motor Co., Ltd. today announced a summary of automobile production, Japan domestic market sales, and export results for the calendar year 2008 as well as for the month of December 2008.

{Production}
Calendar Year of 2008
Production in Japan experienced a year-on-year decrease for the second consecutive year (since 2007).

Due primarily to increased production in Asia, production in regions outside of Japan experienced a year-on-year increase for the 12th consecutive year (since 1997).

Worldwide production also experienced a year-on-year increase for the 12th consecutive year (since 1997).

Honda sets an all-time record for calendar year production in regions outside of Japan and worldwide production as well as production in Asia and China.

December 2008
Production in Japan experienced a year-on-year decrease for the second consecutive month (since November 2008).

Production in regions outside of Japan experienced a year-on-year decrease for the third consecutive month (since October 2008).

Worldwide production experienced a year-on-year decrease for the second consecutive month (since November 2008).

{Japan Domestic Market Sales}
Calendar Year of 2008
Due mainly to strong sales of Fit and Freed, total domestic auto sales in calendar year 2008 experienced a year-on-year increase for the first time in four years (since 2004).

New vehicle registrations experienced a year-on-year increase for the first time in four years (since 2004).

Sales of mini-vehicles experienced a year-on-year decrease for the second consecutive year (since 2007).

{Vehicle registrations - excluding mini-vehicles}
Fit was the industry's best-selling car among new vehicle registrations for calendar year 2008 with sales of 174,910 units. Freed had sales of 50,646 units.

{Mini-vehicles - under 660cc}
Life was the industry's fifth best-selling car among mini-vehicles for calendar year 2008, with sales of 97,129 units. Zest had sales of 42,341 units.


December 2008
Total domestic sales for the month of December 2008 experienced a year-on-year decrease for the second consecutive month (since November 2008).

New vehicle registrations in December experienced a year-on-year decrease for the second consecutive month (since November 2008).

Sales of mini-vehicles in December experienced a year-on-year decrease for the first time in two months (since October 2008).

{Vehicle registrations - excluding mini-vehicles}
Fit was the industry's best-selling car among new vehicle registrations for the month of December 2008, with sales of 9,910 units. Freed was the industry's sixth best-selling car with sales of 4,918 units.

{Mini-vehicles - under 660cc}
Life was the industry's third best-selling car among mini-vehicles for the month of December 2008, with sales of 10,652 units.

{Exports from Japan}
Calendar Year of 2008
Total exports experienced a year-on-year decrease for the first time in five years (since 2003).


December 2008
Total exports from Japan in December 2008 experienced a year-on-year decrease for the third consecutive month (since October 2008).

Honda’s lineup of fuel-efficient vehicles ensured the company survived $4 gas, but the economic collapse during the second half of 2008 has put a serious strain on the automaker’s bottom line. Honda’s operating profit in the third quarter tumbled 63 percent, forcing the Japanese automaker to further slash its fiscal year forecast. Just one month ago Honda reduced its operating profit forecast for the fiscal year ending March 31st to $1.88 billion, but that figure has been revised to just $1.46 billion – an 81.1 percent decline from the previous year, according to Automotive News.

The further erosion of Honda’s operating profits can largely be attributed to the collapse in the North American market – Honda’s largest. North American sales dipped by 13.5 percent, leading to a 55.2 percent decline in operating profit.