Honda 2008 Annual Report Download - page 19

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Unit sales of Honda motorcycles, all-terrain vehicles (ATVs) and personal watercraft (PWC) in fis-
cal 2008 totaled 9,320,000 units*, a decrease of 10.1% from the previous fiscal year. Although
unit sales increased in Other Regions including South America, sales of component parts sets to
Honda affiliate companies accounted for under the equity method for their use in local production
declined.
Revenue increased 13.7% from the previous fiscal year, to ¥1,558.6 billion, as a result of
higher sales in Asia and Other Regions and the positive impact of currency translation effects. Op-
erating income rose 50.4% over the previous fiscal year, to ¥151.2 billion, mainly because of the
positive effect of the appreciation of the Brazilian real and changes in model mix. These positive
factors offset the rise in R&D expenses and higher SG&A expenditures.
In Japan, total industry demand for motorcycles in fiscal 2008 was approximately 710,000 units*,
down from the previous fiscal year. Although sales of the over 251cc class were strong––due to
structural changes such as the decline in the population of younger people, a decrease in newly
licensed drivers in the 50cc or under class, and the shortage of motorcycle parking spaces in
urban areas––sales of the 50cc or under and the 126cc-250cc classes declined.
Amid these market conditions, Honda’s unit sales of motorcycles declined 7.7% from the
previous fiscal year, to 311,000 units, despite an increase in sales of the 51cc-125cc class for
business use due to replacement demand, as sales of scooters in the 50cc as well as the 126cc-
250cc class declined.
To accelerate initiatives for the reduction of Honda’s environmental footprint, Honda newly
applied its programmed fuel-injection system on the Today, Super Cub 50 and other models. In
addition, to stimulate new demand, Honda introduced the DN-01, a large sport cruiser equipped
with a new automatic transmission.
Review of Operations
* Please note that motorcycles manufactured by companies licensed by Honda and accounted for under the equity
method that do not include any production parts supplied by Honda or its consolidated subsidiaries are not included
in the number of units on a consolidated basis. The number of motorcycles classified in this category totaled
approximately 4,580,000 units in fiscal 2008.
* Source: JAMA (Japan Automobile Manufacturers Association)
DN-01
Motorcycle Business
Japan
Annual Report 2008 17