April 12, 2001 - Honda Motor Co., Ltd., together with Hero Honda Motors Ltd., a joint venture company, and subsidiary Honda Motorcycle & Scooter India (Private) Ltd. (HMSI), today announced their two-wheeler business plans for India, targeting annual sales of 1.75 million units in FY 2003.

This number represents 25% of the world-wide seven million unit target that Honda set last May for two-wheeler production and sales.

India represents one of Honda's most important production and export bases for finished products and parts in the two-wheeler market. In collaboration with local partners, Honda is investigating how to fully utilize their respective strengths.

Through a 17-year cooperative relationship with Honda, Hero Honda has grown to become a leading motorcycle manufacturer and in FY 2001, produced and sold about 1.03 million motorcycles. In the future, with an additional investment of 3 billion rupees, production capacity will be increased to 1.5 million units. The future line-up will be expanded to include a new model in addition to the "JOY," which will be introduced tomorrow.

On April 12, the new company HMSI conducted a line off of the "Honda Activa," its first model, and plans to increase production capacity to 250,000 units by FY2003. HMSI has applied to the State of Haryana for the purchase of a plot of land measuring 100,000 square meters located next to the existing factory, to be used for future production expansion.

Honda will actively support both companies to enable them to fully develop their growth potential in both local and overseas markets in a spirit of "mutual benefit and prosperity"