Motorcycle Business

Review of Operations
Motorcycle Business
Honda’s unit sales in fiscal year 2012 increased 9.7% from the previous
fiscal year, to 12,559 thousand units, despite a negative impact on sales
caused by the floods in Thailand. The increase was mainly attributable to
increased sales in India and Vietnam in line with expanded production
capacity, as well as to strong sales in Brazil.
CROSSTOURER (Europe)
Net Sales by Region
Yen (billions)
Japan
2008
2009
2010
2011
¥   93.5 ¥   81.8 ¥   70.4 ¥   70.2
2012
¥   72.9
% change
3.8%
North America
265.6
182.2
103.9
96.6
97.3
0.7
Europe
226.6
178.6
124.6
103.8
96.1
(7.5)
Asia
484.4
460.4
461.0
577.6
579.5
0.3
Other Regions
488.3
508.3
380.1
439.7
502.8
14.4
¥1,558.6 ¥1,411.5 ¥1,140.2 ¥1,288.1
¥1,348.8
Total
Yen (billions)
(%)
1,800
12.0
1,200
8.0
600
4.0
4.7%
0
08
09
10
Japan
North America
Asia
Other Regions
Operating Margin
14
Annual Report 2012
11
12
Europe
0.0
Japan
Total industry demand for motorcycles in Japan* in fiscal year 2012 was approximately 450 thousand
units, approximately 6% higher than in the previous fiscal year. Although the number of licensed riders
declined in line with the continued decline in the population of young people in Japan as well as changes
in consumer preferences, unit sales growth was driven by the launch of new models, etc.
Honda’s consolidated total unit sales in Japan in fiscal year 2012 were 220 thousand units, up 15.8%
from the previous fiscal year. This result reflects the positive impact of the launch of the new Dio110
model scooter, increased sales of the Giorno scooter, and the newly launched global strategic road
sports CBR250R model, whose global manufacturing base is in Asia.
* Source: JAMA (Japan Automobile Manufacturers Association)
Dio110 (Japan)
CBR250R (Japan)
North America
Total demand for motorcycles and all-terrain vehicles (ATVs) in the United States* during calendar year
2011 declined approximately 5% from the previous fiscal year, to approximately 663 thousand units.
Demand fell short of making a full-scale recovery as consumer sentiment remained muted despite signs
of improvement in the employment rate and income levels.
Under these circumstances, Honda’s consolidated unit sales in North America for fiscal year 2012
increased 8.1% from the previous fiscal year, to 200 thousand units. Unit sales of motorcycles increased
18.9% from the previous fiscal year, to 107 thousand units, due to strong sales of the newly introduced global
strategic road sports CBR250R model, the Ruckus scooter and certain other models. Unit sales of ATVs
decreased 2.1%, to 93 thousand units, due to decline in industry demand for sport ATVs, which more than
offset favorable sales of utility ATVs, such as Four Trax Foreman 4x4, which underwent a full model change.
* Source: MIC (Motorcycle Industry Council)
Four Trax Foreman 4x4 (North America)
Honda Motor Co., Ltd.
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Motorcycle Business
Europe
Total demand for motorcycles in Europe* during calendar year 2011 declined approximately 8%, to
approximately 865 thousand units. Weak consumer sentiment due to growing economic instability in
Southern European countries, in particular, adversely affected demand.
Under these circumstances, Honda’s consolidated unit sales in Europe for fiscal year 2012 decreased
2.0% from the previous fiscal year, to 198 thousand units, slightly better than the lackluster market as a
whole. This result is attributable to strong sales of the newly-launched global strategic road sports
CBR250R model the newly-launched scooter model Vision110 as well as a modest contribution from
the NC700S, which was launched in the last month of the fiscal year.
* Based on Honda research, the motorcycle registration market for Europe includes 10 countries: the United Kingdom, Germany,
France, Italy, Spain, Switzerland, Portugal, the Netherlands, Belgium and Austria.
NC700S (Europe)
Asia
Total demand for motorcycles in Asia*1 during calendar year 2011 increased approximately 3%, to
approximately 42.9 million units. Demand for motorcycles continued to expand despite the impact of
the floods in Thailand, the introduction of interest rate hikes to control inflation and tightening of credit
policies in certain countries in the region. Unit sales in India rose approximately 16%, to approximately
13.14 million units, while sales in Indonesia increased approximately 9%, to approximately 8.01 million
units. Sales in Thailand rose approximately 4%, to approximately 1.92 million units, despite the effects
of the flooding.
Activa (India)
16
Annual Report 2012
Air Blade (Vietnam)
Under these circumstances, Honda’s unit sales on a consolidated basis in Asia*2 for fiscal year 2012
rose 8.0%, to 9,910 thousand units. Sales rose on growth in sales of the Activa scooter and Shine
motorcycle in India, and the Air Blade scooter and Wave cub-type motorcycle models in Vietnam.
With respect to production activities, P.T. Astra Honda Motor in Indonesia, which is an affiliate
accounted for under the equity method, announced plans to build a fourth factory specifically for scooters.
With an annual production capacity of around 1,100 thousand units, the plant will help Honda meet
burgeoning demand in the Indonesian market. By the autumn of 2013, the company’s annual production
capacity will be approximately 5,300 thousand units.
*1 Based on Honda research, the motorcycle registration market includes eight countries: Thailand, Indonesia, Malaysia, the Philippines,
Vietnam, India, Pakistan and China.
*2 This total includes sales of completed products of the Company and its consolidated subsidiaries and unit sales of parts for use in
local production to Honda’s affiliates accounted for under the equity method.
Other Regions
In Brazil, the principal market within Other Regions, total demand in calendar year 2011 increased
approximately 7%, to 1,930 thousand* units, on the momentum created by economic growth in the first
half of the year. This result was achieved despite a fiscal tightening policy, and an economic slowdown
brought on by the reverberations of the European sovereign debt crises in the second half of the year.
In Other Regions (including South America, the Middle East, Africa, Oceania and other areas), unit
sales rose 20.2% over the previous fiscal year, to 2,031 thousand units. Strong sales of mainstay models
in Brazil, including the CG150 Fan motorcycle and NXR150 Bros dual-sport motorcycle contributed to
sales growth.
* Source: ABRACICLO (the Brazilian Association of Motorcycle, Moped, and Bicycle Manufacturers)
CG150 Fan (Brazil)
NXR150 Bros (Brazil)
Honda Motor Co., Ltd.
17