Honda 2008 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 2008 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 128

  • 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

In calendar 2007, total industry demand in the United States for motorcycles and ATVs de-
clined. Although sales of on-road bikes remained stable, sales of off-road bikes and sport
ATVs, which are recreational products, declined reflecting the economic slowdown as a re-
sult of the turmoil in financial markets stemming from the subprime mortgage crisis.
Under such circumstances, Honda’s unit sales in this market for fiscal 2008 declined
9.9%, to 453,000 units.
In the motorcycle category, although the number of super sport bikes such
as the CBR600RR increased, sales of cruiser models and off-road bikes declined.
As a result, Honda’s motorcycle sales in North America fell 14.2%, to 242,000
units. In the ATV category, despite favorable sales of models in the utility ATV
FourTrax Rancher series, sales of ATVs decreased 4.5%, to 211,000 units, as
the number of sport ATV models declined.
In calendar 2007, total industry demand for motorcycles in Europe* other than Italy in-
creased over the previous year, to approximately 1,320,000 units, as a result of the growth in sales
of large scooters, which are the largest segment in Europe.
In this operating environment, Honda’s motorcycle sales in this region for fiscal 2008 de-
creased 4.9% from the previous year, to 313,000 units. Despite flat sales of large scooter models,
soft demand for the 125cc class scooters, naked sports models** and dual-purpose*** models
undermined total unit sales.
In Asia, demand for motorcycles as a primary mode of transportation has continued to grow. Dur-
ing calendar 2007, total industry demand in principal Asian countries excluding Japan* rose to
approximately 35,500,000 units, as a result of stable economic growth.
Amid this business environment, Honda’s consolidated unit sales of motorcycles** declined
16.0%, to 6,633,000 units.
Honda has been working to expand as a business with deep roots in this region through more
proactive sourcing of local component parts for production. In Asia, particularly in China and India,
this strategy has resulted in an increase in sales of Honda-brand motorcycles that are manufac-
tured and sold by affiliate companies accounted for under the equity method. However, because
these models do not include any parts supplied by Honda or its consolidated subsidiaries, they
are not included in Honda’s consolidated unit sales.
Reviewing sales by country, in Thailand, although sales of the Wave series were favorable,
sales of existing models weakened. As a result, Honda’s unit sales in Thailand declined 8.2% from
the previous fiscal year, to 1,286,000 units.
In Vietnam, unit sales in fiscal 2008 climbed 42.9% over the previous fiscal year, to 1,125,000
units. Factors accounting for these increases were the introduction of the first programmed fuel-
Motorcycle Business
SH300i
CBR600RR
* The motorcycle registration market includes10 countries: the United Kingdom, Germany, the Netherlands, Belgium,
France, Spain, Italy, Switzerland, Portugal and Austria.
** Naked sports models are not equipped with a cowl.
*** Dual-purpose: motorcycles used mainly for off-road riding but also designed to run on paved roads (public roads)
North America
Europe
Asia
Annual Report 2008
18