Honda 2012 Annual Report Download - page 22

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Automobile Business
Civic
(Europe)
In production activities, Honda manufactured 1,229 thousand units, down 4.8% from the previous
fiscal year.
Honda Manufacturing of Indiana, LLC, a consolidated subsidiary in the U.S, began a second production
shift from October 2011, which increased annual production capacity at the plant to 200 thousand units.
Honda de Mexico, S.A. de C.V., a consolidated subsidiary in Mexico, announced plans to build a
new factory with an annual production capacity of approximately 200 thousand units in order to meet
expected market expansion in the compact car segment. This move is expected to raise Honda’s annual
automobile production capacity in North America to 1.87 million units by the first half of 2014.
* Source: Ward’s Auto
EUROPE
During calendar year 2011, total demand in Europe*1 edged down approximately 1% from the previous
year, to approximately 13.57 million units. In Germany, individual retail market sales significantly declined,
despite signs of a market recovery. The main factor was weak consumer sentiment due to concerns
about the economy. On the other hand, in Russia*2, sales increased approximately 39%, to approxi-
mately 2.65 million units, supported by higher sales of locally produced vehicles.
Honda’s consolidated unit sales in Europe decreased 20.2% from the previous fiscal year, to 158 thousand
units, despite increased sales of the fully remodeled Civic. In addition to supply constraints caused by
supply chain disruptions from the Great East Japan Earthquake, factors behind the decline were
increased sales competition and a drop-off in individual retail market sales, which forms the core of
Honda sales.
On the production front, unit output at Honda’s U.K. plant declined 24.7% from the prior fiscal year,
to 104 thousand units.
*1 Source: ACEA (Association des Constructeurs Europeens d’Automobiles (the European Automobile Manufacturers’ Association)
(new passenger car registrations cover 27 EU countries and three EFTA countries)), excluding Russia
*2 Source: AEB (The Association of European Businesses)
ASIA
In Asia in calendar year 2011, total demand increased approximately 6% from the previous year, to
approximately 7.9 million units*1, despite lower sales in Thailand caused by the flooding. Higher overall
sales resulted from a rise in demand in Indonesia, India and certain other countries. Unit sales in China
rose approximately 2%, to approximately 18.51 million units*2, despite lower growth brought on by the
end of a tax break available through 2010 and more stringent qualification standards for a government
incentive program for fuel-efficient vehicles.
Honda’s unit sales in Asia outside Japan, along with shipments to China, for fiscal year 2012 declined
13.3%, to 874 thousand units. The decline was a direct result of lower production due to the Great East
Japan Earthquake and the floods in Thailand.
Annual Report 201220