Honda Achieves Record Monthly Overseas and Worldwide Auto Production

September 25, 2006, Japan

Corporate

September 25, 2006 - Honda Motor Co., Ltd., today announced its automobile production, domestic sales, and export results for the month of August 2006.

<Production>

Domestic auto production in August increased 11.8% compared to the same month a year ago due to an increase in production of export models. It is the third consecutive month for a year on year increase in domestic production.

Overseas and worldwide production achieved a new monthly record for the month of August, including record production in North America and Asia.

Overseas production in August increased 2.1% compared to the same month a year ago due to a 10.3% increase in Asia. It is the thirteenth consecutive month for a year on year increase in overseas production.

Worldwide production increased 4.9% for the month of August compared to the same month a year ago. It is the thirteenth consecutive month for a year on year increase in worldwide production.

<Japan Domestic Sales>

Total domestic auto sales declined 7.7% compared to the same month a year ago, due to a decline in new vehicle registrations (new vehicle registrations not including mini vehicles). It is the fifth consecutive month, since April 2006, that domestic sales declined compared to the same month a year ago.

New vehicle registrations declined 21% compared to the same month a year ago. This was due primarily to stabilizing sales of Air Wave and Step Wagon. It is the fifth consecutive month, since April 2006, that new vehicle registrations declined compared to the same month a year ago.

Sales of mini vehicles increased 19.1% for the month of August compared to the same month a year ago, due to increased sales of Zest. It is the sixth consecutive month, since March 2006, that mini vehicle sales increased compared to the same month a year ago.

Life was Honda’s best selling vehicle in August, with sales of 7,195 units, ranking as the industry’s fourth best selling mini vehicle. Fit ranked as Honda’s second best selling vehicle for the month of August, with sales of 6,327 units, and the industry’s third best selling vehicle among new vehicle registrations. Zest ranked as Honda’s third best selling vehicle for the month of August, with sales of 5,539 units, and the industry’s sixth best selling car among mini vehicles. Step Wagon was Honda’s fourth best selling vehicle for the month of August, with sales of 4,761 units, and it ranked as the industry’s seventh best selling vehicle among new registrations.

<Exports from Japan>

Exports for the month of August increased 30.5% compared to the same month a year ago, due to an increase in exports to North America. It is the third consecutive month for a year on year increase in exports.

Production

  August Year-to-Date Total
(Jan - Aug 2006)
Units
Vs.8/05
Units
Vs.2005
Domestic
90,278
+11.8%
848,126
+1.6%
Overseas (CBU only)
196,727
+2.1%
1,531,720
+7.2%
Worldwide Total
287,005
+4.9%
2,379,846
+5.1%

Production by Region

  August Year-to-Date Total
(Jan - Aug 2006)
Units
Vs.8/05
Units
Vs.2005
North America
126,413
+0.0%
934,388
+3.5%
(USA only)
90,008
+0.8%
657,680
+5.2%
Europe
10,825
-23.3%
126,210
+1.5%
Asia
50,305
+10.3%
409,538
+16.8%
(China only)
28,275
+23.0%
217,414
+27.0%
Others
9,184
+37.9%
61,584
+19.3%
Overseas Total
196,727
+2.1%
1,531,720
+7.2%

Japan Domestic Sales

Vehicle type August Year-to-Date Total
(Jan - Aug 2006)
Units
Vs.8/05
Units
Vs.2005
Registrations
26,139
-21.0%
272,611
-11.5%
Mini Vehicles
19,584
+19.1%
180,881
+8.3%
Honda Brand Total
45,723
-7.7%
453,492
-4.6%

Export from Japan

  August Year-to-Date Total
(Jan - Aug 2006)
Units
Vs.8/05
Units
Vs.2005
North America
28,787
+83.0%
224,226
+27.0%
(USA only)
27,234
+116.6%
198,509
+26.3%
Europe
6,015
-40.0%
90,075
-7.0%
Asia
566
-53.5%
12,114
+7.6%
Others
8,072
+28.1%
81,134
+15.7%
Total
43,440
+30.5%
407,549
+14.9%