Honda 2007 Annual Report Download - page 20

18
400
300
200
100
0
Italy Spain France
Germany
The United
Kingdom
2004
2005
2006
Source: Honda
(Thousands of units)
Motorcycle Demand in Key European
Countries (Registered Vehicles) (Year)
CBF1000
Touring–sport model made
in Italy
Deauville
Touring model made in
Spain
SH125i / SH150i
Strongest selling Italian-
made model in fiscal 2007
MotorcyclesScooter
1,200
1,000
800
600
400
200
0
9796 9998 01 0200 03 04 05 06
60
40
20
0
(Thousands of units) (%)
Over 250cc
126~250cc
Second-class motor-driven cycles
First-class motor-driven cycles
Honda’s share
Overall Japanese Demand,
by Category (Year)
Source: Japanese Automobile Manufacturers
Association
Motorcycle Business
1,400
1,200
1,000
800
600
400
200
0
25
20
15
10
5
0
01 02 03 04 05 06
(Thousands of units) (%)
Other companies
Honda
Honda’s share
Source: Honda and government data from
individual countries
Total Registered Vehicle Demand
in Europe (Year)
2. The Japanese Market, Impacted by a Declining Birthrate
In fiscal 2007, demand in the Japanese motorcycle market for motorcycles
under 50cc of engine displacement—the largest demand category—fell as
a result of the declining number of youth in the population, resulting in the
declining number of licensed motorcycle drivers. Overall, demand declined
approximately 2%, to 730,000 units.
Looking at recent trends in the Japanese motorcycle market, restrictions on
motorcycles with passengers traveling on expressways have been lifted, auto-
matic-only vehicle licenses have been introduced, and the ETC*
1
system has
been expanded to include motorcycles. Each of these changes has helped to
improve the riding environment, a culmination of years of effort. As a result,
demand stopped declining in certain categories during fiscal 2007.
Due to the decline in demand for inexpensively priced scooters under 50cc, in
fiscal 2007 Honda’s unit shipments decreased 7.0%, to 343,000 units. In fiscal
2008, we expect demand to shrink slightly to approximately 720,000 units.
To meet anticipated increases in the diverse recreational mobility needs of
Japanese customers, we will work to meet customers’ demand focusing on
customers’ satisfaction, developing “Dream Shops” in Japan which offer
products and services of high value, centering on sport models.
*1: ETC System (Electronic Toll Collection System)
This system for paying expressway tolls without stopping at toll booths uses a wireless system for
toll collection by communicating between the antenna of a vehicle-mounted ETC unit and a toll
collection machine.
3. Expanding Demand in Southern Europe, Particularly
for Scooters
The motorcycle market in Europe in calendar 2006 was characterized by
growing demand in Southern Europe, including Italy, Spain and France,
driving up demand 8.5%, to approximately 1,310,000 units*2. A licensing
system revision in Spain in October 2004, raised from 50cc to 125cc the
maximum size of motorcycles that could be ridden legally with a standard
automobile license, prompting a surge in demand in this country. Demand in
France and Germany also surged in advance of the January 2007 introduc-
tion of Euro3*3 emissions restrictions in 15 European countries.
Honda’s unit sales in Europe in fiscal 2007 came to 297,000 units, down
6.6%. Sales of SH125i, SH150i and other scooters were robust, but sales of
large super sport models and motorcycles in the 125cc class were lackluster.
*2: Number of motorcycles registered in the European market (12 countries: Italy, Spain, France,
Germany, the United Kingdom, the Netherlands, Belgium, Austria, Switzerland, Portugal, the
Czech Republic and Hungary)
*3: Euro3: An emission regulation that calls for a 55% reduction against previous levels of carbon
monoxide (CO), a reduction in hydrocarbons of between 33% and 70%, depending on vehicle type
and a 50% reduction in nitrogen oxides (NOx).