Honda Postpones Assembly Operations at Rajasthan Plant

December 17, 2008 New Delhi

New Delhi, December 17, 2008: Honda Siel Cars India, leading manufacturer of premium cars in India, today announced the postponement of capacity enhancement and assembly operations at its second plant in Tapukara, Rajasthan.

Addition of new capacity, initially scheduled for Q4 of 2009, has been deferred in view of the current economic slowdown, which has impacted the automobile industry, resulting in a drop in demand. Honda will continue to assess the market situation to decide on the timing of the car roll-out.

The deferment was announced at a press conference addressed by Mr Takeo Fukui, President & CEO, Honda Motor Co. about various swift and flexible measures taken by the Company to counter the sudden and expansive weakening of the marketplace in all business areas.

In view of the negative growth in the Indian automobile industry and in the interest of maintaining lean operations, Honda Siel Cars India has also decided to reduce production at its Greater Noida plant.

HSCI is closely monitoring the market situation and will adjust monthly production volumes to respond promptly to market demands while ensuring operational efficiencies and low inventory levels.