What A Year! Honda Siel Cars Closes 2004 With a Grand 110 % Jump in Volume Sales

January 6, 2005 New Delhi

Marketshare in the premium segment increases to 22%

Production capacity increase to 50,000 units annually in 2005 to significantly reduce waiting period for the New City

Distribution network to be further strengthened in 2005

Honda Siel Cars India, the leading manufacturer of premium and luxury cars in the Indian automobile industry, has closed the year 2004 with a magnificent performance. The year was marked with several accomplishments for the company and its three models – the New City, the Accord and the CR-V - from increase in market share and higher volumes to new offerings and higher profits, among others.

The company sold a total of 35,414 units in the year 2004, registering a remarkable increase of 110 % as compared with sales in 2003.

The New City demonstrated remarkable gains during the year, both in terms of sales volume as well as market share. The company sold a total of 30,834 units of the model during the year, registering an increase of 115% over 2003. The New City today commands a 27% market share in the mid-size segment, a gain of 10 per cent over 2003.

The globally popular Honda Accord continued to lead the list of luxury sedans in India. The model sold a total of 2,977 units during the year and currently enjoys an enviable marketshare of 40% in its segment, an increase of 69% over 2003. The Accord V6, introduced in March 2004, has further strengthened Honda Accord’s leadership in the segment.

The CR-V, with its unique ‘SUV cum sedan’ concept is today one of the most popular cars in its segment. The company sold a total of 1,603 units of the CR-V during 2004, up by 147% over 2003. The car today holds a significant 35% market share in the segment. Honda Siel Cars recently introduced the New CR-V in India, also in manual version, further propelling CR-V’s popularity.

Commenting on the company’s brilliant performance, Mr. R. Saharia, DGM - Marketing, Honda Siel Cars India Ltd., said, “Our performance in 2004 is a step towards achieving our bigger objective of becoming the No.1 company in the premium segment of the Indian passenger car industry. The popularity of all our models is a testimony of the company’s single-minded focus on delivering the best product value to its customers. In 2005, we will work towards boosting our production capacity and strengthening our distribution network. While the former will significantly reduce the waiting period for our highest selling model, the New City, the latter will help us in becoming more accessible to our customers spread across the country.”

With increasing demand for its various models, Honda Siel Cars is planning to invest an additional Rs. 150 crores in 2005 to increase its total production capacity to 50,000 units annually by the end of the year. The company’s manufacturing plant in Greater Noida, is currently working on full capacity.

In the new year, the company will continue its efforts towards strengthening its presence in non-metro towns and cities. The company plans to further add nine new dealerships in seven new cities.

2004 also saw the company’s strengths being recognized by various automobile research organizations. J.D. Power Asia Pacific’s Initial Quality StudySM (IQS) for 2004 declared the New City as the leading midsize car in India, with the least number of problems reported per 100 cars. In addition, the ‘2004 Dealer Satisfaction Study’ conducted by TNS, ranked Honda Siel Cars at the top in dealer satisfaction in the four-wheeler category.