Honda to Strengthen Mini-vehicle Business

Tokyo, Japan, July 18, 2007; Yachiyo Industry Co., Ltd., a Honda consolidated subsidiary in Japan, announced it has determined to acquire the land adjacent to its Yokkaichi Factory to build new production facility in the effort to further strengthen its mini-vehicle business. The purpose of the land acquisition is to establish the optimal production system for mini-vehicles, including engines and parts, in order to further improve the competitiveness of mini-vehicles that the company produces.

Although the detailed plans are still to be finalized, the company plans to begin with the establishment of an engine assembly facility, which will enable the company to achieve synchronous production of automobiles including the engine and the complete automobile, which in turn will help the company improve the efficiency of production and logistics.

About Yachiyo Industry Co., Ltd.

Established:         August 1953
Capital:             JPY 3,685.6 million (50.34% Honda Motor Co., Ltd.)
Location:            Saitama (Sayama)
Representative:      Motoastu Shiraishi, President & CEO 
Business activities: Production and sales of motorcycle parts and 
                     automobile parts, Production of automobiles
                      (Honda's mini-vehicles: Life, Zest, Vamos, 
                       Vamos Hobio, Acty Truck, Acty Van) 
Major operations: 
   Japan:            Saitama (Sayama), Shizuoka (Hamamatsu), 
                     Mie (Suzuka, Yokkaichi, Kameyama), Tochigi (Sakura)
   Overseas:         U.S.A., Canada, Thailand, Vietnam, China 
Consol. employment:  6,408 associates 
Consol. net sales:   JPY 353,083 million (FY ended March 31, 2007) 
Ordinary profit:     JPY 9,861 million (FY ended March 31, 2007)  
Factories in Japan


Kashiwabara Factory: Sayama
                     Automobile parts: fuel tank, sun roof, 
                      stamped metal parts, plastic parts 
                      (instrument panel, bumper, etc)  
Suzuka Factory, 
 Suzuka plant:       Suzuka 
                     Automobile parts: fuel tank, stamped metal parts,
                      plastic parts (instrument panel, bumper, etc)  
Suzuka Factory, 
 Kameyama plant:     Kameyama
                     Automobile parts: fuel tank, repair parts  
Suzuka Factory, 
 Hamamatsu plant:    Hamamatsu 
                     Motorcycle parts: Engine parts, fuel tank, etc  

Yokkaichi Factory:   Yokkaichi
                     Automobiles (Honda's mini-vehicles):  Stamped metal
                      parts for automobiles


Honda Motor Co., Ltd.

Honda Motor Co., Ltd. is one of the
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than 120 manufacturing facilities in 30 countries worldwide, producing a
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information, please visit http://world.honda.com.