HERO HONDA INTRODUCTION

Hero %toCorp is Workfs largest motorcycle company. Honda %tor

Company of Japan Hero Group entered a joint venture to setup Hero
Honda %tors Limited in 1984. joint venture betvqen Hero GroL4)
and
%tor Company, Japan has not only created worki's single
largest two
company but a so o of most sLEcessful joint
ventures worldwide.
80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle po uting roads. The
company introduced new geration motorcycles that set industry
for fuel thrift and bw emission. A legendary 'Fill it Shut it Forget
it' campaign captured imagination of commuters across
Hero sold millions of bikes purely on the commitment of increased
mileage.
Over 20 million Hero kbnda two tread roads today. are almost as
many as number of people in Sweden put
together. Honda has consistently grown at double digits im:eption;
today, every motorcyc e sod in country is a Hero Every 30 secoryjs,
someo i n buys Hero Horxia's top motorcycle Spleryjor. This
festi season, company sold half a mil ion two ina single month? a
feat urparalleled ingoba automotive history.
Hero became first company in the country to introduce fourstroke
motorcycles set for fuel efficierx:y, po utioncontrol quality. It has an
excellent distribution service network spread the country.
Hero bikes currently roll out from its three globally benchmarked
facilities. Two of are based at Dharuhera and Gurgaon in Haryana
third state of the art manufacturing facility was inaugurated at
Haridwar, i n April this year. plants together are capable of out 4.4
million units per year.

reached an unassailable pole postionin the Indian two

wheeler market, Hero Honda is constantly working towards

consolidating its postion in market place. The company believes

that demographic profile of
urbanization and empowerment of rural India will add mil ions of
tv,v families to the mainstream. This woud provide growth ballast
that woud sustain Hero years to come. As Brijmohan Lall Munjal the
Chairman, in
V-ero Honda %tors succirx:tly ponts out, 'We pioered
motorcycle industry,
it's our responsibility rmv to take the
industry to the next lel. Well do all it takes to

reach

Product range of the company includes:

CD Dawn
CD Deluxe P asure Spleryjor *
Spleryjor NXG

Passion PRO
Passion Plus

Swer Splendor

Glamour
Glamour PGM Fl
Achiever
CBZ Extreme

Karizma

1983
Joint Collaboration Agreement With
Agreement sigd

1984

 Hero Honda %tors Ltd. Irx:orporated

1985
First motorcycle 'CD 100' rolled out

1987
100000th motorcycle produ:ed

1989
New motorcycle model 'Sleek' introduced

1991
New motorcycle model 'CD 100 SS' introduced
500000th motorcycle prodLned

1992
Raman Munjal Vidya Mandir inaLOurated A Sciwol in memory
of founder Managing Director, Mr. Raman Kant Munjal

1994
New motorcycle model 'Sp introduced
1
motorcycle prodLEed

1997
New motorcyce model 'Street' introdLEed

1999
New motorcycle model 'CBZ i ntrodLEed
Ewironment Management System of
with SO 14001 by DW Holland

Plant certified

 Raman Munjal Memorial Hospital

A Hospital in

memory of

Director, Mr. Raman Kant Munjal

2000
motorcycle prodLEed

Ewironment Management System of Gurgaon Plant certified

SO14001 by
DNV Holland
Spleryjor declared 'World Nb. 1' largest
model
'Hero

Passport Programme' CRM Programme

2001
New motorcycle model 'Passion' i
O million prodLEtion in one year New motorcycle model
'Joy' introduced
motorcycle prodLEed

2002
Becomes the first hdian Company to cross the cumulative

7 million sales ma rk
Spler has emergedas Worki's
mode for the third
calendar year in a row (2000, 2001, 2002)
New motorcycle model 'CD Dawn' introduced, New
motorcycle model
'Sp
introduced, New motorcycle model 'Passion Plus'
introduced,
New motorcycle model 'Karizma' introduced

2004
New motorcycle model 'Ambition 135' introdtned
Hero Honda became the Worki Nb. 1 Company for the third
consecutive year.

 Crossed sales of over 2 million units ina single year, a global

record

Hero Honda's

plant at Gurgaon inaugurated

1998
motorcycle produced

Spleryjor Worlds largest

motorcycle crossed 5
mark
New motorcycle model 'CBZ i
Joint Technical Agreement red
Total sales crossed a record of 10 mil ion motorcycles

million

2005
Hero Honda is Worki No. 1 for
4th year ina row
New motorcycle model 'SL4)er Spler' introduced, New
motorcycle model 'CD Deluxe' introdLEed New motorcycle
model 'Glamour' introduced, Nbw motorcycle model
'Achiever' introdLEed
First Scooter mode from Hero

'Pleasure' introdLEed

2006
Hero Honda is Worki No. 1 for
5th year ina row
15 million production milestone achieved

2007

Hero Honda is Worki No. 1 for

New 'Sp WG' launched
New 'CD Deluxe' aunched
New 'Passion Plus' launched

New motorcycle model 'Hut*

6th year ina row

 20 million production milestone achieved

2008
Hero Honda Haridwar Plant inauguration
New 'Pleasure' launched
Spleryjor NXG with power start feature
New motorcycle model 'Passion Pro'
launched
25 mil ion production milestone achieved

New 'CBZ Xtreme'

CD

Deluxe

with power start feature

New 'Glamour'
New 'Glamour Fi'

2009
Hero Honda GoodLife Program launched Hut* (Limited Edtion)
launched
Spleryjor completed 11 million production landmark
New motorcycle model 'Karizma

Silver jLbilee

celebrations

2010
New model Sp
Pro
L_atmn of new Super Sp

Nbw Hut*

2011
New licensing
sigd between Hero and
L_atmn of new refresiMi versions of Glamour, Glamour FL
CBZXtreme,

Karizma
Crosses figure of5 million cumulative sales ina
year
July 29, 2011 Hero
Motors
its name to Hero %toCorp

the exit of its erstwhile Japanese promoter, Honda, from

company

2012
Migration of all prodLEts to Brand Hero
L_atmn of Impulse, Maestro and Onitor

2013
Neemrana Plant

Sto aid

50 Mil ion cumulative

production

Green Pioneer Award 2013

Busiss Leader ofthe Year' Award by kbnble Presidentof

hdia, Shri.
Pranab MLkherjee, at the AMA

India Awards 2013 on April 11,

2013 (Conferred on Mr. Pawan Munjal)

Busiss Leader ofthe Year' Award in Auto (Two category by
Deputy Chairman of the Commission Mr. Montek Ahluwalia, at
the NDTV Busiss Leadership Awards 2013 (Conferred on Mr.
Pawan
Munjal)
year Award (Conferred on
Mr. Ravi

2012
Busiss Leader i n Automobiles
Busiss

at the NDTV Profit

Leadership Awards 2012 (Conferred L4)on Mr. Pawan

Munjal)
Best value for %ney Bike Maker

Best

Advertising

Category at Auto hdia Best Brand Awards 2012

in

Two

Digita Advertiser of year

Digita Media Awards
(DMA) 2012 Three awards (Laurx:h Event of the year,
Rural
Progamme and Live Patron Award for
Marketing Excellence) at the WOW Awards organised by
EventFAQsAdvertiser of year 2012 by Indian Digita Media
Awards
2012
hrmation i n Loyalty Marketing Award (hitiative:
GoodLife Utsav) by
Co loquy Loyalty Awards

TPM ExcelletE:e Award 2012 by JPM (Japan institute of Plant

Maintenam:e)

2011
Twowheeler Manufacturer of Year award by Bike hdia magazine
Adjudged
'Bike Manufacturer of the Year' at the
Economic Times

Car and Bike Awards

2010
Rated as Top hdian Company in Automobile Two
Wheelers sector by Dun
& Bradstreet Rotta Corporate Awards 2009
Preferred Brand of TwoWheelers award atthe CNBC
Awaaz Consumer Awards.

Adjudged at top

category in

Brand

Equty

Most

Trusted Brands 2010 Sury

Rared No. 3 Most Trusted across categories
Adult
Ma
Company of the Year awarded by Economic Times Awards for
Corporate

2008-09

CNBC TV 18 0'erdrive Awards 2010 'Hall of Fame' to Sp

NDTV Profit Car & Bike Awards 2010 Twowheeler
Manufacturer of the Year, CnB Viewers' Choice
the Year (Karizma ZMR)
Bike Maker of Year by ET
ZgWheels Car & Bike of Year Awards

of

2009'
2009
Manufacturer

Year' by NDTV ProfitCar & Bike

Awards
2009 and Passion Pro adjLrjged as CNB Viewers' Choice
Top Company under

'Automobile

Dun & BradstreetRo ta Corporate Awards

Won Gold in Reader's Digest Trusted
'Motorcycles' category

2009

the

NDTV Profit Busiss Leadership Awards 2009

category

2008
NDTV Profit Busiss Leadership Award 2008

TopGear

Design Awards 2008

NDTV Profit Car & Bike Awards
hdiaTimes Mindscape
Savile Row ( A Forbes GroL4) Venture ) Loyalty
Awards
Asian Retail Award for Retail ExcelletE:e (Strategies and
Solutions of busiss inrmation transformation)
NDTV
Profit Car & Bike Awards
Overdrive Magazine
TNS Voice of Customer Awards

2007 The NDTV Profit Car

&

Bike

Awards 2007

2006
Corporate Social Responsibility Award
Top company in the Automobile Two Wheeler sector by Dun
&
Bradstreet American
Corporate Awards 2006
Hero Honda Splerr rated as hdia's most preferred
brand at the Awaaz Consumer Awards 2006
NDTV Profit Car

& Bike

Awards 2006

2005
Awaaz Consumer Awards 2005 Bike Maker of the Year Award
by Overdrive Magazi

2004
Winr of the Review 200 Asia's Companies Award (3rd
Rank amongst the top 10 companies)
CSI National Award for
in Corporate
by The
Institute of Company Secretaries of

2004

2003
Winr of

Review 200

Respected Company in Automobi e Sector by Busiss

World
Bike Maker of Year by O.erdri'.e Magazine.

2002
Bike Maker of Year by O.erdri'.e Magazine

Winr of
Review 200 Company ofthe Year of ET Awards
for Corporate

2001
Bike Maker of Year by O.erdri'.e Magazine
Winr of Three Leaves Award for showing Corporate En
ronment
Responsibility in the Automobile Sector by Centre for Science
& En ronment
Busiss Sciwol Award for Corporate
Honda Motors Ltd.
many more..

to Hero

HERO HONDA JOINT VENTURE

Hero kbnda Motors Ltd. (Hero Honda), a joint venture between
Hero Cycles of India and kbnda of Japan, came into existence
in 1984 as a motorcycle and scooter manufacturer in India. In
2001, Hero became largest two wheeler
company i n
India with over a million units produced as well as the 'Worki's
number one' company i n terms of the unit volume sales for
the
year. The technology for
bikes was provided by
whereas Hero was i n its distribution and service t',wrk
spread across the country.

In 1999, Motor Company annoutNMi the up of

Motorcycle and Scooter India (HMSI) for scooters ater
motorcycles as well. After this, stock of Hero fell by 30%.
SLbsequently, HMSI started
motorcycles, directly with
Hero Honda. Hero felt that its ambition to go international was

hampered by joint venture. Both the companies decided to the

joint venture signed parting agreement on
December 16, 2010. With the split, the erstwhile partners
became competitors. Both
the companies have several opportunities challenges to gain
and consolidate their positionin and are likely to face two
wheeler
market.

The

Industry in India

The industry i n India is highly dynamic. Post 90s, automobi e

has been on list of high potential industries of India . India is the
vwrlcfs largest manufacturer of motorcycles, with annual sales
exceeding 8.5 million units in 2009. The country next to China and
Japan i n terms of prodLEtion and sales respectively. automotive
irriustry consists of five segments: commercial vehicl
Automobile Domestic Sale s Tre nds
INu
mbe
r

20
07-08

201
1M I

250
154

15
552,703
49
3
8
4
,
1

es & pass
two-wheelers;

532
72

201
1-12

201
213

2,61

793,
15

multiutility 'vehicl
tractors

The demand for

is inflLEtE:ed by a number of
factors, as followirv
hadequate public transportation system, especially in the
semi-urban and rural areas;
increased availability of cheap
consumer increasing availability of fuel-efficient and models;
Changes in the demographic
profile;
Steady growth in per capta
irx:ome;
increasing number of models.
Table 1: Growth rate (in per cent) of Automobile Domestic
Sales Trends i n various segments in automobile industry