Honda expanding Automobile and Motorcycle production operations in Indonesia
Honda to Build New Automobile Production Plant

JAKARTA, Indonesia, March 15, 2012 – P.T. Honda Prospect Motor (HPM), Honda’s automobile manufacturing and sales joint venture in Indonesia, has announced plans to build a new automobile production plant with annual production capacity of 120,000 units. The plant will be located within the property of the existing HPM plant in the Karawang Industrial Park in a suburb of Jakarta. Combined with the current capacity of 60,000 units, HPM’s total annual production capacity will be 180,000 units.

The new plant, an investment of approximately 3.1 trillion Indonesian rupiah (approximately 27 billion yen*), is scheduled to become operational in 2014, and initial employment will be approximately 2,000 associates. HPM is planning to produce small-sized vehicles such as the BRIO developed for Asian markets. Based on its vision for the continuing expansion of the small vehicle market in Indonesia and an increase in exports to ASEAN countries, Honda will further enhance its production capacity and product lineup in Indonesia.

Existing PT Honda Prospect Plant in Indonesia

Moreover, HPM will strengthen local product planning and development function, establish a highly efficient production system, and increase local content to approximately 80% from the current level of approximately 50%. Through these efforts, HPM will provide high-quality products to its customers with speed and affordability.

HPM will begin importing BRIO from Thailand before the end of 2012, and then begin local production of an Indonesian version of the model at the existing plant before the end of 2013. HPM is planning to transfer production of BRIO to the new plant when it becomes operational in 2014.

*Calculated with the exchange rate of 1 Indonesian rupiah = 0.0088 yen

Statement by Hiroshi Kobayashi / Managing Officer and Chief Operating Officer for Regional Operations (Asia & Oceania) of Honda Motor Co., Ltd. :

“Our operations in Indonesia will take the next step to become more autonomous and play an even more important role for Honda in this region. Honda will not only build automobiles in Indonesia to meet the needs of customers here. Indonesia will serve as a key export base for Honda – for both completed vehicles and components. At Honda, our corporate goal is to be a company that society wants to exist. In this spirit, we believe that our efforts to expand our business in Indonesia also will benefit the local community.”

JAZZ Production in Indonesia

About P.T. Honda Prospect Motor

Established: March 1999
Capital Investment: US$ 70 million
Capitalization Ratio: 51% Honda Motor Co., Ltd.49% P.T. Prospect Motor
Representative: Tomoki Uchida
Location: Head office: Jakarta, IndonesiaProduction Plant: Karawang
Business: Production and sales of automobiles
Products: Jazz, CR-V, Freed
Production Capacity: 60,000 units annually
Employment: Approx. 3,600 associates



Announcement of Fourth Motorcycle Plant Construction

March 13, 2012 – PT Astra Honda Motor (herein after called as “AHJ”; President Director: Yusuke Hori), Honda’s joint venture company in Indonesia responsible for motorcycle production and sales, plans to build a Fourth Motorcycle Plant that produces scooter models exclusively with 1,100,000 units production capacity per annum. This will be done with a view to satisfying the vigorous demand of the remarkable Indonesian markets.

The annual production capacity of AHJ through the construction of Fourth Plant including the existing First, Second and Third Plant will become 5,300,000 units in total, and AHJ is continuing to establish the production system throughout the concept of “To supply 100% good products, with speed, affordability, and low carbon”. This plant, which will be built in Bukit Indah Industrial Park about 70 kilometers east from central of Jakarta, is planned to start the operation in the autumn of 2013. The investment amount for the new plant is approximately 3.128 trillion Indonesian rupiah (approximately 27.5 billion yen), and AHJ plans to employ around 3,000 new employees, so in total the employees will become around 21,000 associates altogether with the existing plants. Reduction of CO2 emissions, utilization of the natural power sources by wind power generator and solar power generator, and adoption of automation at process are also tackled positively for this new plant, aimed to be an environmental green plant for employees, community and natural environment.

Supra X Helm from Indonesia

The motorcycle market of Indonesia is the world’s third-biggest market next to China and India, and the further expanding demand is expected on the back of the steady economic basis in recent years. The total market of motorcycle in 2011 reached 8.01 million units as the highest ever and became 109% compared with last year. The sales achievement of AHJ in 2011 updated to record the highest volume in history with around 4.27 million units and exceeds the growth of market by 125% compared with last year sales. For 2012, the total market is expected to be expanding approximately 8.7 million units and AHJ is planning to sell around 4.8 million units.

Motorcycling is the primary form of transport in Indonesia

Honda’s motorcycle production capacity in the Asia Oceania region currently reached 11.5 million units in total. The production bases in Asia Oceania region are expected to expand further capacity with the vigorous motorcycle demand on the back of economic growths, besides as export base globally. Honda continues expanding the Joy of Customer in the future, from the commuter (small size) types that play an essential role in daily life of customer to motorcycles with high pleasure that equipped with advanced technology to satisfy the global widespread needs of customers.

Profile of PT Astra Honda Motor

Established on: December 2000
Start to operate: January 2001
Head Quarter: Jakarta, Indonesia
Capital: 185 Billion Rupiahs (approx. 1.63 Billion Yen)
Share Holder: Honda Motor Co., Ltd. 50%PT Astra International 50%
President Director: Yusuke Hori
Scope of Business: Manufacture component, assembling engine and body,and sales (wholesaler) of motorcycle
Production Capacity: 4.2 million units/year(1st Plant: 1 mill. units, 2nd Plant: 1 mill. units and 3rdPlant: 2.2 mill. units)
Number of employee: 18,000 persons (end of January, 2012)
Models: SupraX-125, Revo, Blade, Mega Pro, Tiger, Vario,Vario Techno 125, BeAT, CS1, Scoopy, Spacy Helm-In
Number of dealer: 1,775 outlets (end of February, 2012)

The KEY to success is to get off the starting grid quickly...!



Honda Holds a Ceremony to Commemorate Resumption of Production at its Automobile Plant in Thailand

Honda Automobile (Thailand) Co., Ltd. (HATC), the Honda automobile production subsidiary in Thailand which resumed production on March 26, 2012, after having suspended production since October 4, 2011, due to the damage sustained from the flooding in Thailand, recently held a ceremony to commemorate the resumption of production.

Thailand Prime Minister Yingluck Shinawatra (right) and Takanobu Ito, President & CEO of Honda, at the ceremony

The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Seiji Kojima as guests of honour, as well as Honda executives and associates including Takanobu Ito, President & CEO of Honda, and Hiroshi Kobayashi, Chief Operating Officer for Honda’s regional operations in the Asia Oceania Region.

Thailand Prime Minister Yingluck Shinawatra, Takanobu Ito, President & CEO of Honda, and Hiroshi Kobayashi, Chief Operating Officer for Honda's regional operations in the Asia Oceania Region

Positioning HATC as one of its key operations in the Asia Oceania Region, Honda exerted company-wide recovery efforts to realize the earliest possible resumption of the operation. HATC is expected to normalize production from the second week of April 2012 and will continue its production in Ayutthaya so that its products will be delivered to customers as soon as possible.

Moreover, the Honda group in Thailand will establish a fund named the Honda Khiang Khang Thai Fund, and will contribute a predetermined amount to the fund for each Honda motorcycle, automobile and power product sold in Thailand. Honda expects this fund to grow to approximately 300 million baht by the end of the fiscal year ending March 31, 2013. In this way, Honda will be able to support the people of Thailand in case natural disasters should occur again in the future. At the same time, Honda will contribute to the local community through the expansion of its operations in Thailand.

Statement by Takanobu Ito / President and CEO of Honda Motor Co., Ltd.:

“We are grateful for all the support and understanding we received from Thai governments, customers and for the hard work of our associates during the recovery of HATC. As a production and R&D base, Thailand is very important for Honda’s operation. As a base for our product supply in the Asia Oceania Region, Honda will continue expanding our operations in Thailand along with the growth of the market. During our 48 years in Thailand, Honda has established a close bond with the Thai people and the local community. It is Honda’s corporate goal to be a company that Thai society wants to exist. But this takes concerted action based on the needs of the community. By continuing to work together, Honda and Thailand will create a bright and strong future for our mutual success.”

About Honda Automobile (Thailand) Co., Ltd.

Location: Ayutthaya province, Thailand
Representative: Hiroshi Kobayashi/President
Capital Investment: 5.46 billion baht
Capitalization Ratio: 75.94% Honda Motor Co., Ltd.13.05% Asian Honda Motor Co., Ltd.11.01% Others
Business Areas: Production and sales of automobiles
Established: December 2000
Employment: Approximately 4,000 associates
Production Capacity: 240,000 units per year