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Corporate

November 20, 2001

Honda Joint Venture Company Begins Motorcycle Business in China

Tokyo, November 20, 2001 --- Honda Motor Co., Ltd. today announced that its new joint venture company in China, Sundiro Honda Motorcycle Co., Ltd., has begun production of a new 125cc motorcycle. A commemorative ceremony to mark the foundation of the company was held as well as a lineoff ceremony for the jointly developed M-LIVING motorcycle ('WanLiXing' in Chinese).

Sundiro Honda was established as the result of a merger of China Tianjin Honda Motors Co., Ltd, Hainan Sundiro Motorcycle Co., Ltd, and their motorcycle related subsidiaries. The annual sales target of the new company for 2002 is one million units.

M-LIVING is designed to incorporate the major attributes of the GL125 and CG125, both well-known business motorcycles in the Chinese market, as well as the renowned characteristics of the Honda brand - engine durability, superb fuel economy and emissions technology that meet forthcoming regulations.

The new motorcycle, to be sold at an affordable price of 5,500 yuan (80,000 yen), will be an ideal means of transportation especially in regional cities and agricultural districts where motorcycle sales have increased drastically in recent years. The annual sales target for M-LIVING is 96,000 units.

Honda President and CEO Hiroyuki Yoshino attended the foundation ceremony and said: "This new company has begun with big dreams in the world's largest motorcycle market, where the economy is growing at a tremendous rate. I am excited by the energy displayed by this new company. It reminds me of the spirit we at Honda experienced in our early days. I am convinced that this new joint venture will provide customer satisfaction in China by offering a wide range of motorcycles that reflect the ingenuity of all three partners ."

The four pillars of the joint venture are;

Honda's technological expertise and global network.
Sundiro's experience and expertise in the Chinese market, enhancing the model lineup in the mid-price range.
Sundiro's procurement network, which strengthens its competitiveness due to reduced costs.
Sundiro's current sales/marketing network, which allows a more active pursuit of business.

The Chinese motorcycle industry, with stable and continuing growth as well as an aggressive increase in exports, will account for 13.5 million units in 2001.

Corporate Information

Foundation	:	September 2001.
Headquarters	:	Tianjin, The People's Republic of China.
Production facilities	:	Tianjin, Shanghai and Hainan
Capital	:	US$99,565,000 (equivalent to 12.21 billion yen).
Capital investment	:	50% Honda Motor, 47.33% Sundiro and 2.67% Tianjin Motors Group Inc.
Major business activities	:	Manufacturing and sales of motorcycles.
Number of employees	:	Approx. 5,600.
Production capacity	:	1.4 million units annually.
Major products	:	Honda brand M-LIVING 125cc scooter AME100 100cc custom motorcycle production by Tianjin factory
		Sundiro brand	XDZ50QT-A 50cc scooter XDZ125T-10 125cc scooter XDZ125-36 125cc motorcycle
		In total, about 40 different models will be produced

Major Specifications of M-living (Chinese name: WanLiXing)

Length (mm)	:	2020
Width (mm)	:	800
Height (mm)	:	1065
Engine type	:	Air-Cooled 4-stroke Single OHV.
Displacement (cc)	:	124.1.

*	1RMB = 14.69 yen
	1US dollar=122.65 yen (as of November 15, 2001).

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