Honda 2007 Annual Report Download - page 60

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Europe
Total demand in Europe* in calendar year 2006 amounted to
approximately 14,620,000 units, roughly the same level as in
2005.
Unit sales for fiscal year 2007 climbed 11.3%, to 324,000
units from the previous year. Recording strong sales results
were the five-door Civic and the Accord, as well as the CR-V,
a compact SUV that was launched in January 2007 which
underwent a full model change, and the three-door Civic.
In production, consolidated subsidiary Honda of the U.K.
Manufacturing Ltd. responded to rising demand for the Civic
and the CR-V, ramping up to full production in calendar year
2007 by starting two-shift production in February at its second
plant. The company is strengthening its production system
through the gradual transfer of diesel engine production from
Japan.
* Source: European Automobile Manufacturers’ Association (ACEA),
passenger car category (15 countries in the European Union, three
countries in the European Free Trade Association)
Asia
In Asia in fiscal year 2007, total unit sales of completed auto-
mobiles of Honda and its consolidated subsidiaries, and unit
sales of parts to Honda’s affiliates accounted for under the
equity method for purposes of local production by such affili-
ates in the aggregate, grew 19.0%, to 620,000 units from the
previous fiscal year.
Total demand amounted to approximately 5,200,000 units
in China in calendar year 2006, rising substantially from the
previous year. Particularly strong were sales of the City by
Guangzhou Honda Automobile Co., Ltd., an affiliate accounted
for under the equity method, and Civic sales by Dongfeng
Honda Automobile Co., Ltd., also an equity-method affiliate. In
September 2006, the Acura brand was introduced in China, in
the brand’s first launch outside North America, through sales of
the Acura RL and the Acura TL. In fiscal year 2007, total unit
sales of completed automobiles of Honda and its consolidated
subsidiaries, and unit sales of parts to Honda’s affiliates
accounted for under the equity method for purposes of local
production by such affiliates in the aggregate, significantly
increased 37.6%, to 361,000 units from the previous fiscal
year. In production, in September 2006 operations began at
the second plant of Guangzhou Honda Automobile Co., Ltd.,
which has an annual production capacity of 120,000 units. In
March 2007, production also began at a new plant in China
that manufactures automobile transmissions and other
powertrain components. These advances are in line with
Honda’s move to strengthen its structure to meet burgeoning
Chinese demand.
In India, where the market continues to expand, an Indian-
made Civic model went on sale in July 2006, contributing to
higher unit sales.
In Vietnam, consolidated subsidiary Honda Vietnam Co.,
Ltd., began local production of the Civic in July 2006.
Other Regions
Due to expansion in Latin America, the Pacific, and the Middle
& Near East, unit sales in Other regions rose 23.4% in fiscal
year 2007, to 248,000 units.
In Brazil, Honda began local production of the Civic in April
2006, and sales of this model were strong. In November 2006,
we introduced the Civic FFV, a flexible-fuel vehicle that runs on
100% ethanol or any gasoline-ethanol mixture, followed by the
launch of the Fit FFV in December. Australian sales of the Civic,
Jazz and the new CR-V were strong.
Power Product and Other Businesses
Honda’s unit sales of power products totaled 6,421,000 units,
up 9.3% from the previous fiscal year. In Japan, unit sales
totaled 527,000 units, an increase of 8.2%. Overseas unit sales
came to 5,894,000 units, an increase of 9.4%, due mainly to
increased unit sales in North America and Europe. Revenue in
power product and other businesses, including intersegment
sales within Honda, increased 14.7%, to ¥438.9 billion, from
the previous fiscal year, due mainly to increased unit sales of
power products and the positive impact of currency translation
effects. Operating income was ¥36.1 billion, an increase of
0.6% from the previous fiscal year, due mainly to the positive
impact of increased profit attributable to higher revenue and
the currency effects caused by the depreciation of the Japa-
nese yen, which offset the negative impact of the increased
SG&A expenses and the gain on return which was recorded in
the fiscal year ended March 31, 2006. The operating margin
was 8.2%.
Unit Sales
Thousands
Years ended March 31 2006 2007 % change
Japan 487 527 8.2%
North America 2,827 3,103 9.8
Europe 1,477 1,625 10.0
Asia 717 760 6.0
Other Regions 368 406 10.3
Total 5,876 6,421 9.3%
03 04 05 06 07
2,000
4,000
8,000
6,000
4,584
5,047
5,876
326
342
382
0
6,421
438
03 04 05 06 07
0
120
240
360
480
5,300 341
Unit Sales
Years ended March 31
(Thousands)
Net Sales
Years ended March 31
Yen (billions)
Japan
North America
Europe
Asia
Other Regions