Honda 2008 Annual Report Download - page 23

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In North America, Honda will begin to market its multi utility vehicle (MUV), Big Red, which is
intended for utility and recreational use, in summer 2008. Total sales in fiscal 2009 are forecast to
rise 6.0%, to 480,000 units.
Unit sales in Europe are expected to decline 1.0%, to 310,000.
In Asia, sales are forecast to increase 15.9%, to 7,685,000 units.
In Thailand, Honda will also introduce 100cc-class models in the first half of fiscal 2009
equipped with a new engine that has met the emission standard level 6, with a maximum of 15%
improvement in fuel efficiency and an increase in power compared with previous engine models,
while also featuring a lower price. These new models, equipped with this new engine, will be in-
troduced first in Thailand in summer 2008, and then will be introduced steadily in other countries
in Asia beginning from fiscal 2009. These models will be capable of operating on E20 gasoline,
which includes a 20% ethanol ratio.
Also, in Vietnam, in August 2008, Honda’s second plant in Vietnam will begin operations with
an annual capacity of 500,000 units, thus bringing total annual capacity in Vietnam to 1,500,000
units.
In India, Hero Honda Motors Ltd. began production in April 2008 at its third plant, which has
an annual production capacity of 500,000 units.
In China, Honda is scheduled to clear new environmental standards in the first half of fiscal
2009 and to steadily introduce new models with improved fuel efficiency.
In Other Regions, Honda is expecting sales to increase to 1,845,000 units in fiscal 2009.
Expansion of production capacity in Brazil, from 1,350,000 units to 1,500,000 units a year, was
completed in December 2007. In addition, plans to increase capacity to 2,000,000 units by early
2009 are also under way.
In Japan, the new motorcycle plant at the Kumamoto Factory began production in April 2008.
With a target of the first half of calendar 2009, Honda is scheduled to gradually transfer motorcycle
production from Hamamatsu and the production of large motorcycles from the Ohio plant in the
United States and consolidate these activities in the new Kumamoto Factory. Honda has incorpo-
rated the most advanced and efficient production technologies into this plant, and it will play the
role of the leader plant for Honda’s worldwide motorcycle production.
Review of Operations
Third plant of Hero Honda
Big Red
New Kumamoto motorcycle plant
Annual Report 2008 21