Honda announces mid-term business strategy for China

April 13: Ahead of the Beijing Motor Show starting on April 27, Honda Motor (China) Investment Co announced its mid-term business strategy for China. Strengthening Honda brand product

• For the Honda brand, introduction of more than 10 new and full-model-change models is scheduled during the 3-year period from 2013 to 2015. The company plans to double its 2011 unit sales in 2015.

• All Honda vehicles sold in China will shift to new engines that apply Earth Dreams Technology, Honda’s innovative next-generation technologies. The engines of all Honda brand vehicles will be renewed by the end of 2015.

• As for hybrid models, within this year, three models will be introduced to the Chinese market. All three -- the CR-Z, Insight and Fit Hybrid -- are equipped with Honda’s original IMA (Integrated Motor Assist) lightweight and compact hybrid system.

• Honda is also preparing for local production of hybrid models in China. Through local procurement of key components such as batteries and motors, it aims to reduce costs in order to popularise hybrid vehicles in China. • Demonstration tests of electric vehicles has begun in Guangzhou last year. Based on the results, Honda is preparing to begin local production at Guangqi Honda sometime toward the end of this year. Strengthening Acura brand products

• The new NSX will be introduced to the Chinese market. It will apply the Sport Hybrid SH-AWD(R) (Super Handling All Wheel Drive) hybrid system which combines superior driving and environmental performance. • The Acura brand will see the introduction of the ILX, a small-sized saloon, and the RDX, a small-sized SUV, as well as the scheduled introduction next year of the RLX luxury saloon.

• Starting in stages next year, the Acura brand plans to introduce models equipped with new, relatively small-sized engines, for which demand is high in China.

Strengthening R&D

• Honda is considering the establishment of a Honda design studio in China. The R&D teams of the JV companies, the development team of Honda China and Honda research centres in Japan will work together to locally develop products. The carmaker also plans to pursue further localisation in the sourcing of parts and components and also increase the number of new local suppliers.

Expansion of production capacity

• In July 2012, the second plant of Dongfeng Honda will begin production. Guangqi Honda is also making progress with a plan to build its third line and is aiming to begin production on this new line in 2014.