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Old 18 Apr 2012, 11:44 am
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Default Honda teases two concepts debuting in China

From AB

Honda Announces Mid-term Business Strategy for China

BEIJING, China, April 10, 2012 - Honda Motor (China) Investment Co.,
Ltd. today announced its mid-term business strategy for China.
Outline of mid-term strategy
< Strengthening Honda brand product >

For the Honda brand, introduction of more than 10 new and
full-model-change models is scheduled during the 3-year period from
2013 to 2015. By enhancing its product lineup, we will steadily
increase our sales striving to double its 2011 unit sales in 2015.
Honda will more focus on the needs of customers in China and introduce
a number of products that will bring joys to customers.
All Honda vehicles sold in China will shift to new engines that apply
Earth Dreams Technology, Honda's innovative next-generation
technologies. The engines of all Honda brand vehicles will be renewed
by the end of 2015. In this way, Honda will strive to realize the
highest fuel economy in each vehicle category in the Chinese
automobile market.
As for hybrid models, within this year, Honda will introduce three
models to the Chinese market. All three models, the CR-Z, the Insight
and the Fit Hybrid, are equipped with Honda's original IMA (Integrated
Motor Assist) lightweight and compact hybrid system.
Honda is currently preparing for local production of hybrid models in
China. Through local procurement of key components such as batteries
and motors, Honda will strive to reduce costs in order to popularize
hybrid vehicles in China.
As the next step following the popularization of the IMA hybrid
system, Honda will introduce to the Chinese market a new hybrid system
most appropriate for mid- to large-sized vehicles as well as a plug-in
hybrid system.
As for electric vehicles, Honda began demonstration testing in
Guangzhou last year. Based on the results of this testing, Honda is
preparing to begin local production at Guangqi Honda sometime toward
the end of this year.

< Strengthening Acura brand products >

The new NSX will be introduced to the Chinese market which represents
the Acura brand. The new NSX will apply the Sport Hybrid SH-AWD(R)
(Super Handling All Wheel Drive) hybrid system which combines superior
driving and environmental performance.
The Acura brand will strengthen its product lineup in China this year
with introduction of the ILX, a small-sized sedan, and the RDX, a
small-sized SUV, as well as the scheduled introduction next year of
the RLX luxury sedan.
Moreover, starting in stages next year, the Acura brand is planning to
introduce models equipped with new, relatively small-sized engines,
for which demand is high in China.
The powertrains of all Acura models also will be renewed by the end of
2015 to bring the latest advanced technologies to customers in China.

< Strengthening R&D >

Honda is considering the establishment of a Honda design studio in
China. The R&D teams of the joint venture companies, the
development team of Honda China and Honda research centers in Japan
will work together to significantly enhance Honda's R&D capacity
in China. Through this initiative, Honda will further strengthen its
system and capability to enable its Chinese associates to locally
develop products that exceed the expectations of customers in China.
Along with the further localization of our development, Honda also
will pursue further localization in the sourcing of parts and
components. To increase cost competitiveness, Honda will further
increase the number of new local suppliers.

< Expansion of production capacity >

In July of this year, the second plant of Dongfeng Honda will begin
production. At this new plant, Honda will employ the world's latest
production technologies to achieve excellent environmental performance
and to make it an advanced plant with a human-friendly workplace for
Guangqi Honda is also making progress with a plan to build its third
line and is aiming to begin production on this new line in 2014.

< Brand communications >

Honda is taking various actions to attain new growth while moving
toward the new era of a fast-changing China. To communicate its
passion, Honda will begin a new brand communication campaign with the
key phrase of
*e -- meaning "a new future will be
carved out when Honda takes new actions together with its
The Acura brand will also adopt a new brand key phrase of
which will help communicate the values of Acura products and services
more clearly to the customers. This means that Acura brand vehicles
put the central focus on customers, and provide each customer with the
joy of becoming one with the vehicle and the freedom of maneuvering at
the will of the driver. In the area of service, we will put the focus
on customers and further strengthen our well-established service by
providing customized services for each customer.

< Motorsports >

Honda will initiate the promotion of racing activities and expand the
awareness of motorsports activities which are currently hasn't yet
gained great popularity in China. Honda will participate in the FIA
World Touring Car Championship (WTCC) starting this year. In addition,
Honda will race on a spot participation basis in the China Touring Car
Championship (CTCC), starting this year.
For this year's China Grand Prix in November, Honda will participate
both in WTCC and CTCC.

< Overview of Display for the Beijing International Automotive
Exhibition (starting April 23, 2012, open to public from April 27
through May 2, 2012) >

At the Honda booth, two concept models that focus on Chinese customers
will make their world premiere. In addition, hybrid models (CR-Z,
Insight, Fit Hybrid) which will be introduced to the market this year,
will be on display.

At the Acura booth, in addition to the all-new NSX Concept, the ILX
and the RDX which will be introduced to the Chinese market this year,
will be on display. The Honda booth and Acura booth will each host a
press conference at 10:00am (11:00am Japan time) and 10:30am (11:30am
Japan time), respectively, on April 23, 2012.
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