Honda 2008 Annual Report Download - page 27

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in January 2007, and the three-door Type S as well as Type R models in the Civic series, and
strong sales of the sedan-type models, such as Accord and Civic four-door sedans, especially in
Russia.
In the area of production, Honda of the U.K. Manufacturing Ltd., our consolidated subsidiary,
expanded the production shifts from February 2007 to meet the expanding demand for the Civic
and CR-V. As a result, the output for fiscal 2008 increased 29.7%, to 247,000 units, and the cu-
mulative production at the plant reached two million units in February 2008.
In Asia, total demand in principal countries* in calendar 2007 increased, to approximately
14,330,000 units, as a result of stable economic expansion.
Unit sales of Honda automobiles in Asia** during fiscal 2008 expanded 21.8%, to 755,000
units.
By country, sales of the Civic and the new CR-V that were introduced in early 2007 showed
favorable expansion in Indonesia, India and other countries. In China, sales were strong for the
City and Odyssey by Guangzhou Honda Automobile Co., Ltd., an affiliate accounted for under
the equity method, and for the Civic and CR-V which was introduced in April 2007 by Dongfeng
Honda Automobile Co., Ltd., also an equity-method affiliate.
In production, Honda began construction of a second plant in Thailand in July 2007, which
will have a maximum annual production capacity of 120,000 units with an eye to further expansion
in demand both in Thailand and other parts of Asia and Oceania. In addition, construction of a
second plant in India, which will have an annual capacity of 60,000 units, began in July 2007, and
work on expanding the capacity at the existing first plant from 50,000 units to 100,000 units was
completed in January 2008. Through these expansion activities, Honda is preparing to respond to
rising demand for its automobiles. To note, cumulative production in Thailand reached one million
units in December 2007.
CR-V
* Source: Association des Constructeurs Européens d’Automobiles (the European automobile association) (Passenger
cars, figures include 25 EU countries and 3 European Free Trade Association (EFTA) countries)
Cumulative production at the Thai plant
reaches 1 million
* The total includes Thailand, Indonesia, Malaysia, the Philippines, Vietnam, Singapore, Taiwan, Korea, India, Pakistan
and China.
** Total of sales of finished automobiles of Honda and its consolidated subsidiaries, and unit sales of parts to Honda’s
affiliate companies accounted for under the equity method for use in local production by such companies
Review of Operations
Asia
Annual Report 2008 25