Unit sales of all of Honda products - motorcycles, cars and power products - increased during the fiscal second quarter.

Motorcycle sales increased 21.8% to 2,701,000 units. Sales in Japan decreased 8.3% to 110,000 units, and overseas unit sales increased 23.5% to 2,591,000 units. Continued strong sales in Asia, such as Indonesia and India, and other regions, such as Brazil contributed to these increases.

Car sales increased 8.0% to 794,000 units. In Japan, sales of automobiles increased 8.0% to 190,000 units, contributed by new models such as the Elysion, Edix and Odyssey.

Overseas unit sales increased 8.1% to 604,000 units. Increased unit sales of parts for local production in China, and favourable sales in Europe were the major contributing factors for this increases in unit sales.

Unit sales of power products totaled 1,085,000 units, an increase of 10.9% compared to the corresponding period in 2003.

In Japan, revenue was Y1,020.8 billion ($9,192 million), up 8.2% due primarily to increased car sales. Operating income in Japan was Y53.8 billion ($485 million), up 47.1%, with higher profit from increased unit sales, improvements of model mix and cost reduction effects, offsetting negative impacts of appreciation of the yen against the US dollar.

In North America, revenue decreased 5.9% to Y1,098.5 billion ($9,893 million), due to the negative impact of the appreciation of the yen against the US dollar, although unit sales in motorcycles and power products increased. Operating income in North America increased 6.4% to Y85.1 billion ($767 million) due to improved ATV profits, ongoing cost reduction effects and revised prices for 2004 year models, which offset the negative impact of the appreciation of the yen.

In Europe, revenue for the quarter increased 8.9% to Y240.0 billion ($2,162 million), due primarily to increased unit sales in motorcycles, automobiles and power products. Operating income in Europe decreased 21.9% to Y9.0 billion ($82 million), due mainly to increased expenses.

In Asia, revenue increased 18.4% to Y212.5 billion ($1,914 million), due mainly to continued strong sales in motorcycle and automobiles. Operating income increased 24.4% to Y17.5 billion ($158 million).

Revenue from other regions for the quarter increased 29.6% to Y116.6 billion ($1,050 million), due to increased unit sales in automobile business in Latin America and Oceania, and motorcycle business in Latin America. Operating income increased 88.3% to Y10.5 billion ($95 million).

First half car sales increased 8.5% to 1,566,000 units. In Japan, unit sales of automobiles increased 4.6% to 344,000 units, and overseas unit sales increased 9.7% to 1,222,000 units.