Honda 2012 Annual Report Download - page 23

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BRIO
(India)
On the production front, Honda’s unit production decreased 23.1%, to approximately 834 thousand*3
due to the impact of the floods in Thailand. In Asia, excluding China, production totaled 198 thousand
units, while output in China was approximately 636 thousand units.
Production activities at certain automobile plants in the Asia region were suspended due to the floods
in Thailand. Subsequently, however, production has gradually resumed at all factories since January 2012.
P.T. Honda Prospect Motor, a consolidated subsidiary in Indonesia, announced plans to construct a
new automobile factory with an annual production capacity of 120 thousand units for production of the
BRIO and other compact cars. This new facility is expected to raise the company’s annual production
capacity to 180 thousand units in 2014.
Furthermore, Dongfeng Honda Automobile Co., Ltd., an affiliate accounted for under the equity
method, is constructing a second plant to respond to a continuing increase in demand in China’s auto-
mobile market. By the end of 2013, Dongfeng Honda’s total annual production capacity is scheduled to
increase to 360 thousand units.
Moreover, Guangqi Honda Automobile Co., Ltd., an affiliate accounted for under the equity method,
has announced plans to build a third production line with an annual production capacity of 120 thousand
units. This new line will raise the company’s annual production capacity to 600 thousand units in 2014.
As a result, Honda’s annual production capacity of automobiles in China, including the annual produc-
tion capacity of Honda Automobile (China) Co., Ltd., a factory dedicated to production for export, is
scheduled to increase from 770 thousand units at present to 1,010 thousand units in 2014.
*1 The total is based on Honda research and includes the following 10 countries: Thailand, Indonesia, Malaysia, the Philippines,
Vietnam, Singapore, Taiwan, Korea, India and Pakistan.
*2 Source: China Association of Automobile Manufacturers
*3 The total includes the following nine countries: China, Thailand, Indonesia, Malaysia, the Philippines, Vietnam, Taiwan, India and Pakistan.
OTHER REGIONS
Total industry demand for automobiles in Brazil*, one of the principal markets among the Other Regions,
increased approximately 3%, to approximately 3,430 thousand units in calendar year 2011, marking a
record for the 5th consecutive year. Although the growth rate dropped due to the impact of fiscal tight-
ening measures from the end of 2010, light commercial vehicle sales increased.
In Other Regions (including South America, the Middle East, Africa, Oceania and other areas), unit
sales in fiscal year 2012 declined 24.1% from the previous fiscal year, to 202 thousand units. This was
due to supply chain disruptions caused by the Great East Japan Earthquake and supply constraints
caused by the floods in Thailand.
On the production front, Honda’s unit production in Brazil, decreased 36.5%, to 80 thousand units
from the previous fiscal year.
* Source: ANFAVEA (Associação Nacional dos Fabricantes de Veiculos Automotores (the Brazilian Automobile Association, includes
passenger cars and light commercial vehicles))
Honda Motor Co., Ltd. 21