New Delhi, India, April 12, 2001 - Hero Honda Motors Ltd. (Headquarters: New Delhi, India; President: Brijmohan Lall), the joint venture company of Honda Motor Co., Ltd. in India, announced today that it achieved a record annual production of one million units as of March 21. A commemorative ceremony will be held on April 13.

Hero Honda is the top motorcycle manufacturer in India. Since production started in 1985, Hero Honda has achieved a cumulative production of 4.3 million two-wheeler units (as of March 2001), and an annual sales figure of about 1.03 million units as of the end of FY2000. Both of these achievements make Hero Honda the leader in two-wheeler production and sales among Honda's overseas operations.

After launching its popular "Splendor" model, the company released the "Passion" model in January, and today launched the "Joy," a new type of two-wheeler with a streamlined design which is also a basic, practical vehicle. The "Joy" will go on sale from tomorrow.

Through intensive marketing of the new model, supported by a sales network that includes 420 outlets, Hero Honda aims to achieve an annual sales record of 1.2 million units in FY 2001, which would be a 16.5% increase over last year.

The two-wheeler market in India* is the second largest behind China, with total sales last year of about 3.87 million units. Of these, 2.14 million units were motorcycles.

In the past, the number of scooters in the market far exceeded the number of motorcycles, but when the "Splendor" was introduced in 1993, its convenience, typified by its large loading capacity, ease of handling and maintenance, gradually led to an increase in its popularity. In 2000, the number of units sold reached a total of 645,000 units. This model played an important role in expanding the motorcycle category in India.