Honda 2007 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2007 Honda annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 136

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136

VTX1300C
Motorcycles ATVs
Gold Wing
CRF450X
CRF150R
FourTrax Rancher
TRX450R
CBR1000RR
Cruiser
Touring
Enduro
Motocross
Utility
Sport
Sport
Models suited for long-distance riding over paved
surfaces and focused on rideability
On-road motorcycles:
Primarily for recreational
and competitive racing
in forests and on sandy
trails
Off-road models:
Used mainly for
practical applications,
such as in agriculture
Mainly for recreational use
17
Business Development in Developed Countries of Matured Markets
1. Soaring Gasoline Prices and Rising Interest Rates
Affect North American Market
The U.S. market is divided into motorcycles and ATVs. In calendar 2006, the
U.S. motorcycle market for on-road models expanded, spurred by new
model launches by various manufacturers, but off-road category demand for
enduro models suffered a decline as soaring gasoline prices and concerns
about the economy prompted customers to curtail recreational spending.
Consequently, overall demand remained approximately on par with the pre-
vious year. At the same time, in calendar 2006 the U.S. ATV market was
relatively strong in the sport category, in response to the introduction of new
products by various manufacturers. Higher interest rates and concerns
about an economic slowdown affected demand in the utility category,
however, driving down overall ATV demand compared with the preceding
fiscal year.
In fiscal 2007, Honda’s unit sales in North America fell 18.2%, to
503,000 units. In the motorcycle category, sales of new sports and off-road
models were strong, but enduro models experienced a sales decline as a
result of the shifts in the market environment. In the ATV category, sales
were strong for new models, such as the FourTrax Rancher series, launched
in December 2006, following a full model change. However, shifts in the
market environment caused overall sales to decline.