The 42nd Tokyo Motor Show 2011 Speech of Sho Minekawa Managing Officer and Chief Operating Officer for Regional Sales Operations in Japan

November 30, 2011, Japan

News Release

Today, I would like to explain the initiatives we will be taking in Japan.
Honda has a history of introducing various environmentally-responsible vehicles ahead of the times. Starting from the CVCC engine, we are now selling various models equipped with Honda's original IMA hybrid system. With the recent introduction of the all-new Freed series, our hybrid lineup in Japan now consists of six models, and the percentage of hybrid vehicles among new vehicle registrations in the current fiscal year ending March 31, 2012 is expected to be approximately 50%.

A wide variety of environmentally-responsible vehicles, including hybrids, are being introduced by each automaker; however, the toughest market in Japan is the mini-vehicle market. Today, I will introduce to you the new mini-vehicle series, N Concept, which was created as a result of our complete review of our mini-vehicle history.
The name "N" represents both Honda's original passion as well as our strong passion today to propose new vehicles for Japan for the new era to come - based on the key words of New, Next, Nippon (Japan) and Norimono (which means "vehicles" or "mobility devices").
The N BOX is Honda's completely new mini-vehicle that combines a newly-designed platform, which adopts Honda's original packaging technology, and a highly competitive new powerplant. In order to realize spaciousness, comfort and economic efficiency beyond conventional thinking, we condensed the values of a minivan, where Honda has great experience, into a mini-vehicle. The N BOX will go on sale in Japan on December 16.
Furthermore, the new platform and powerplant, which are adopted for the first time in this N BOX, will be expanded to other models which will be introduced to the market in the future. As a part of the N Series, a new model based on N Concept 3 will be introduced to the market in spring 2012, followed by the introduction of another model based on N Concept 4 in fall 2012. With that, we will strive to increase our mini-vehicle sales to 280,000 units, which would double the sales of 2011.

Fit EV will be introduced to the Japanese market in summer of 2012. Initially, we are assuming the lease sales will be conducted mainly with businesses and the public sector; however, we will enhance our product lineup and expand sales in the future.

As for the recently announced all-new CR-V, in addition to the 2.4-liter model, a 2.0-liter model which realizes the top fuel economy in the SUV class will be introduced exclusively in Japan.

Offering a variety of services for our customers that enhance the value and enjoyment of the automobile is as important as the new values offered by our products. Our signature service is the Internavi, which is an interactive car navigation service that utilizes Honda's original floating car data (driving data). This service has been widely utilized, and the "Traffic Information Maps", which we released in response to the Great East Japan Earthquake to help people go in and out of the affected areas, received the 2011 Good Design Grand Award. In the future, we will extend the sharing of floating car data, a unique technology of Honda, not just between cars, but from cars to people and to society, to connect people through social media and other technologies.
This new initiative to utilize our Internavi is named the "dots project", and will be sequentially expanded from end of this year.
The first set of contents to be provided through this project will be Internavi information such as the most appropriate route to a destination, weather and disaster information. This information will be posted through social media and shared by customers. We are going to start this function before the end of this year.
Furthermore, we are planning to begin providing a broad range of Internavi Linc services to our motorcycle customers as an application dedicated to motorcycle users.

The motorcycle is at the origin of Honda's establishment. I have always thought that the motorcycles Honda offers must always be fun. The New Mid Concept, which I am pleased to introduce to you today, is being developed as a product which exceeds the expectation of our customers with the fun of maneuvering and ease of handling it provides. The all-new 700cc engine realizes both the joy of riding and excellent fuel economy at a high level. It offers powerful torque and ease of handling in the low- to mid-speed range as well as excellent fuel economy which was improved by more than 40% compared to sports models in the same class. In addition, we offer a type equipped with the second-generation Dual Clutch Transmission, realizing an exhilarating ride that provides a powerful and direct feeling despite the fact it is still an automatic motorcycle.
Now, let me introduce three different models all based on this innovative New Mid platform.
First, the NC700S -- an easy-to-handle model with dynamic styling that enables the rider to enjoy riding with a secure feeling in urban areas or on winding roads.
Next, the Integra -- with unique styling that realizes both the fun of riding a motorcycle and the comfort of riding a scooter. And finally, the NC700X -- which was developed based on the Crossover Concept and offers Fun riding beyond the range of on-road and off-road.
These three models as well as the CRF250L, an eagerly-awaited on/off model, will be introduced to the Japan market sequentially starting from spring 2012 to offer the joy of riding to more customers.

Honda will continue its challenge to deliver mobility products and services that are beyond the expectations of our customers and are unique to Honda, with speed and affordability. So please maintain your high expectations!

Thank you very much for coming today!