Honda 2010 Annual Report Download - page 9

Although unit sales increased in Japan and the rest of Asia,
total sales were below the level of the previous fiscal year
because of declines in North America, Europe and Other
Regions, including South America.
In Japan, during the first half of the fiscal year,
operating conditions were difficult because of the
weakness in corporate business activities as a result of
the global downturn and stagnant consumer spending.
However, in the latter half of the fiscal year, based on the
positive effects of measures to stimulate demand, including
tax reductions and subsidies for eco-friendly automobiles,
sales of automobiles moved toward recovery. Sales of
Honda’s Insight, Fit, and StepWGN held firm, and unit sales
rose. Additionally, in Asia outside Japan, several key factors
spurred an increase in auto sales, including the significant
growth of business in China, and the smash success of the
new City in Thailand, India and other markets.
At the same time, in North America, while sales of
the CR-V, the new-model Accord Crosstour and other
light truck models, including the brand-new Acura ZDX,
expanded, Honda’s unit sales declined because of the
overall shrinkage in the market. In Europe, industry demand
expanded in some countries as a result of the adoption of
government incentives to encourage purchases of new cars;
however, Honda‘s unit sales decreased due to increased
competition and other factors.
Total unit sales of motorcycles declined from the previous
fiscal year, despite increases in Asia, because of lower unit
sales in Japan, North America, Europe and Other Regions,
including South America.
In Asia, where market growth is continuing, demand
in the first half of the calendar year 2009 was influenced
by the global economic downturn, but in the second half,
demand showed recovery throughout the region. Honda’s
total unit sales in Asia rose along with expanded sales of
the Activa and the new CB Twister in India as well as higher
sales of the Wave 110i AT and the new PCX in Thailand.
In contrast, in North America, compared to last year,
unit sales decreased for mid-size models, principally in
the 750cc class, as well as all types of scooters and ATVs,
especially in the United States. Also, unit sales declined
in Other Regions, including South America, mainly in
the Brazilian market, because of the tightening of loan
standards for motorcycles in the wake of the financial crisis.
Motorcycle Business
Automobile Business
Total unit sales of power products decreased from the
level of the previous fiscal year, despite increased sales in
Asia outside Japan. This decline was due to lower sales
in Japan, North America, Europe and Other Regions,
including South America. In Asia, unit sales of engines and
pumps for use in agricultural machinery as well as sales of
trimmers expanded because of the effects of agricultural-
support policies adopted by some countries and the effects
of weather conditions. On the other hand, in Japan, North
America and Europe, unit sales of engines for OEM use
declined, while in Other Regions, including South America,
sales of pumps and general-purpose engines decreased,
thus leading to an overall decline in unit sales.
Power Product and Other Businesses
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