Honda 2015 Annual Report Download - page 15

Japan
Total demand for automobiles in Japan*1 decreased around
7% from the previous fiscal year to approximately 5,290
thousand units in fiscal year 2015. This was greatly influ-
enced by the impact of an increase in Japan’s consumption
tax rate in April 2014 and a fall-back from a spike in
demand prior to the increase.
Honda’s consolidated unit sales in Japan decreased
11.7% from the previous fiscal year to 696 thousand units*2
in fiscal year 2015. The main reasons for the decline were
weak demand due to Japan’s consumption tax rate
increase and the fall-back from a spike in demand prior to
the increase, along with intensified competition in the mini-
vehicle segment. This was despite the introduction of new
automobile models such as GRACE and solid sales of the
VEZEL and N-WGN models.
Honda’s unit production of automobiles in fiscal year
2015 decreased 7.4% from the previous fiscal year to 868
thousand units. This was mainly due to the negative effects
of a decline in unit sales.
*1 Source: JAMA (Japan Automobile Manufacturers Association), as measured by
the number of regular vehicle registrations (661cc or higher) and mini vehicles
(660cc or lower)
*2 Certain sales of automobiles that are financed with residual value type auto loans
by our Japanese finance subsidiaries and sold through our consolidated subsid-
iaries are accounted for as operating leases in conformity with IFRS and are not
included in consolidated sales revenue to external customers in the Automobile
business. Accordingly, they are not included in consolidated unit sales.
North America
Total industry demand for automobiles in the United
States*, the principal market within North America, rose
around 6% from the previous year to approximately 16,520
thousand units in calendar year 2014. This was mainly
attributable to stable economic conditions including the
positive effects of an improvement in employment condi-
tions and a continued increase in personal consumption, as
well as an increase in light truck sales as a result of lower
gasoline prices.
Under these conditions, Honda’s consolidated unit sales
in North America decreased 0.2% from the previous fiscal
year to 1,750 thousand units in fiscal year 2015. This
decline was mainly caused by the negative effects of inten-
sified competition in the passenger car segment and the
U.S. West Coast port strikes, which more than offset the
positive impact of the Acura TLX launch and a full model
change of the Fit model.
Honda manufactured 1,810 thousand units in fiscal year
2015, up 1.8% from the previous fiscal year. This increase
mainly reflected an increase in unit production at Honda’s
new Celaya plant in Mexico, despite the negative effect
from the U.S. West Coast port strikes.
* Source: Autodata
Europe
Total demand for automobiles in Europe* increased about
5% from the previous year to approximately 13,000 thou-
sand units in calendar year 2014. Expansion in the market
as a whole was driven by an upturn in economic conditions.
Honda’s consolidated unit sales in Europe decreased
5.8% from the previous fiscal year to 161 thousand units in
fiscal year 2015. This was mainly due to a decline in unit
sales of the JAZZ.
Unit output at Honda’s U.K. plant in fiscal year 2015
declined 14.2% from the previous fiscal year to 115 thou-
sand units.
* Source: ACEA (Association des Constructeurs Europeens d’Automobiles (the
European Automobile Manufacturer’s Association)) New passenger car registra-
tions cover 28 EU countries and three EFTA countries, excluding Russia.
FIT (North America)
Honda Motor Co., Ltd. Annual Report 2015 14
4 Review of Operations
1 The Power of Dreams
2 Financial Highlights
3 To Our Shareholders
5 Corporate Governance
6 Financial Section
7
Investor Relations
Information
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