Honda 2009 Annual Report Download - page 30

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During calendar 2008, demand in the principal markets of Spain, Italy, and the Unit-
ed Kingdom declined along with the unfavorable impact of the financial crisis from
September 2008. As a consequence, total demand in Europe*1 fell approximately
8%, to about 14,710,000 units. On the other hand, total demand in Russia*2 in-
creased approximately 13% from the previous year, to 2,930,000 units.
Amid this business environment, although Honda introduced the all-new Ac-
cord in June and Jazz (sold as the Fit in Japan) in October 2008 into European
markets, unit sales in this region were down 10.5% from the previous year to
350,000 units mainly due to decreased total demands.
In production activities, Honda of the U.K. Manufacturing Ltd., a Honda U.K.
subsidiary, made production adjustments in response to the sudden decline in au-
tomobile demand. As a result, production at Honda’s U.K. plant decreased 29.4%,
to 175,000 units compared to the same period of the previous fiscal year.
*1: Source: Association des Constructeurs Europeens d’Automobiles (the European automobile association) (Pas-
senger cars, figures include 27 EU countries and 3 European Free Trade Association (EFTA) countries.)
*2: Source: Association of European Businesses
In Asia, total demand in principal countries*1 in calendar 2008 increased over the
previous year to about 15,100,000 units, despite the impact of the global financial
crisis from September 2008 onward.
Under this business operating environment, Honda introduced the all-new Fit in
Taiwan in October 2008. Honda also introduced the all-new City, a small sedan in
Thailand, in September 2008, and subsequently to India and other countries in
Asia. The number of countries in Asia that are offering tax breaks to stimulate de-
mand for fuel-efficient compact cars is increasing. In the compact car market,
where continued growth is expected, Honda is introducing the City and the Jazz to
follow the Civic, Accord, and CR-V, as consistent volume sales products.
During the fiscal 2009, total sales (comprising finished automobiles of Honda
and its consolidated subsidiaries and unit sales of parts to Honda’s affiliated com-
panies accounted for under the equity method) rose 5.0% over the level of the pre-
vious fiscal year, to 793,000 units. Sales of the City and Jazz models held strong in
Thailand, Indonesia, Malaysia, and elsewhere. Similarly, sales of the new Accord
Accord (Europe)
A sporty look combining superior driving stability with high-
level safety and environmental performance
Jazz (Europe)
Featuring top-class utility, high-level fuel economy, and
monoform design
ASIA
EUROPE
Annual Report 2009
28
Automobile Business
Review of Operations