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Hero Honda is the World's No.1 two-wheeler manufacturing company having the
trust of more than 5 million customers. The company is a joint venture of Hero
Cycles of India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma,
Passion, Pleasure and Splendor are its famous brands on Indian roads.
Quick Facts
Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lall
Founder
Munjal and Mr. O. P. Munjal.
Year of Establishment 1984 (The Hero Group was established in 1956)
Mission "Its our mission to strive for synergy between technology,
systems and human resources, to produce products and services
that meet the quality, performance and price aspirations of our
customers. While doing so, we maintain the highest standards of
ethics and societal responsibilities."
- Mr Brijmohan Lall Munjal, Chairman & MD
Foundational Work Before the establishment of the Hero Group in 1956, Munjal
Brothers use to manufacture bicycle components in the early
1940's.
Industry Automotive - Two Wheelers
Business Group The Hero Group
Capitalization Ratio Hero Group - 26%
Honda Motor Co., Ltd. - 26%
Others - 48% (listing)
Listings & its codes BSE - Code: 500182
NSE - Code: HERO HONDA
Bloomberg - Code: HH@IN
No. of Sales Outlets 1500+
Joint Venture The Hero Group (India) with Honda Motor Co., Ltd. (Japan)
Registered & Corporate Office 34, Community Centre
Basant Lok, Vasant Vihar
New Delhi - 110057
Tel.: +(91)-(11)-26142451 - 59
Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 / 2132
Work Station 69 Km Stone
New Delhi-Jaipur Highway
Daruhera - 121106, Haryana
Website www.herohonda.com
www.herogroup.com
New Delhi, March 14 : After months of posting growth rates almost double that
of the industry, Bajaj Auto has gained a 3% increase in market share for the first
eleven months of this fiscal. This has come at a time, when market leader Hero
Honda’s market share has slipped 1.62% and No.3 TVS Motors’ share has
remained flat.
While the two-wheeler industry continues its double-digit growth rate, the growth
this year has been confined to a handful of players. During the first eleven
months of the year, the combined market share of the top three players —Hero
Honda, Bajaj Auto and TVS Motors — has increased by 2.5% to 85.39%. Honda
Motorcycles and Scooters India was the only other company to register growth
while others have reported slipping volumes.
The motorcycle segment continues to be the dominant segment both in terms of
growth and volumes. This segment now accounts for 82.4% of all..
Tags:
• Hero Honda Motors Ltd.|
• Bajaj Auto
NEW DELHI: With arch rival Bajaj Auto gaining ground in the entry level bike segment,
India's largest two-wheeler maker Hero Honda has acknowledged that its leadership
position will come under pressure.
The company, which is currently a subject of speculation over a possible exit of Japanese
partner Honda from the joint venture with Munjals, has been witnessing a decline in
market share in motorcycles of the 75-125cc category. Its market share declined to
68.9% in the April-August period this fiscal, from 81.8% in the same period of 2009-10.
Honda in search of distribution key
Sharmistha Mukherjee / April 08, 2011, 0:13 IST
While it has the firepower to launch new-age bikes, taking on Hero and Bajaj Auto on consumer
touch-points will be a key challenge
Post the termination of the joint venture with the Munjal-promoted Hero Group, Honda
Motorcycle and Scooter India (HMSI) is set to go full throttle in the world’s second largest
motorcycle market.
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The company, which is the fourth largest two-wheeler manufacturer in the country at present, is
already the king in the scooters market with a 43.2 per cent market share. But it has already
realized that alone won’t be enough to achieve its stated target of becoming the number one two-
wheeler brand in India. In the motorbike segment, it is the number four player with a share of
just 7.4 per cent, according to the Society of Indian Automobile Manufacturers data for April-
February.
So HMSI is already gearing up to introduce its first 100 cc bike in the Indian market next year. It
wasn’t possible earlier because of the joint venture with the Hero Group.
While that is good news, industry insiders raise concern on Honda’s ability to put in place a
distribution network that can take on the likes of Hero Honda and Bajaj Auto which have 4,500
and 3,600 touch points respectively.
Rakesh Batra, analyst automotive practice, Ernst &Young, says, “Hero Honda has cultivated
marketing initiatives at the grassroot level over the last 30 years. To grow volumes, HMSI would
have to reach out to customers in rural areas. The company also needs to put in place a cost-
effective supply chain for delivering products.”
HMSI has a distribution network of 800 dealers and sub dealers. The company plans to add on
100 outlets in the current fiscal and an average of 200 new sale stations every year.
That is particularly critical as the company plans to focus on sales in rural areas to shore up
volumes. “Currently, the demand is more from the urban market which is going to reverse in the
next 10 years”, Shinji Aoyama, outgoing president and chief executive officer, HMSI, says. The
company at present registers two-third of its sales from urban centres and the remaining one-
third from rural and semi-urban areas.
Aoyama says it is crucial to introduce mass market products to drive up volumes in the Indian
market. The Twister has been HMSI’s workhorse in the commuter segment and has clocked an
average of 14,000 units every month since its launch in April 2010. Going ahead, HMSI is
looking at launching “inexpensive models” in the 100+ cc and 150 cc segments to grab a bigger
share of the market.
“We are in a hurry to fill up whatever we did not have in our product portfolio earlier. Introducing
inexpensive models is a crucial area for us. While we will not disturb the existing Hero Honda
customers, we will concentrate extensively in beefing up our line-up in the country”, Aoyama
adds. Industry experts note that nearly 60 per cent of the nine million motorcycles sold in the
last financial year came from products in the 100-110 cc segment and Hero Honda Splendor
alone sold two million units in the segment.
VG Ramakrishnan, senior director, Frost & Sullivan, says, “The pressure has increased on the
Indian subsidiary to increase sales in the motorcycle segment. While it would not be difficult for
HMSI to get products into the Indian market, it will have to get the pricing right to scale up
volumes.”
Another critical area HMSI needs to focus on, experts say, is to work on re-establishing the
uniqueness of the Honda brand in the country. “Hero Honda has entrenched itself in the minds
of customers and brand Honda is known for its association with Hero Honda. HMSI has to
establish the uniqueness of its brand so that loyalties towards HMSI do not get transferred to
Hero Honda”, says an industry observer on condition of anonymity.
At present, the company has three scooter brands — the Activa, Dio and Aviator priced
between Rs 39,820 and Rs 50,020. Its motorcycle portfolio includes the CB Twister (Honda’s
sole offering in the best-selling 110 cc segment), the CB Shine, the CB Stunner and the CB
Stunner PGM-Fi in the 125 cc segment and the CB Unicorn and CB Dazzler in the 150 cc
category.
SALES PERFORMANCE
HERO HONDA REPORTS LEADERSHIP
PERFORMANCE WITH 50 % NET PROFIT IN Q2, '08-
09
DEFIES INDUSTRY TREND WITH TURNOVER (NET
SALES & OTHER OPERATING INCOME), AT RS.
3202 CRORE; EBIDTA AT 13.58 PER CENT
Aug'06 Aug'07 FY 06-07 FY 07-08
Total Sales 2,15,076 2,40,875 12,82,860 12,63,254
Hero Honda
Type Public companyBSE:HEROHONDA
M
Industry Automotive
Website www.Herohonda.com
Hero Honda Motors Limited is a two wheeler manufacturer based in India. Hero
Honda is a joint venture between the Hero Group of India and Honda of Japan[3]. The
company is the largest two wheeler manufacturer in India.[4] The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at 108.[5]
In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal
family.
Contents
[hide]
• 1 Company profile
• 2 Company performance
• 3 Recognition
• 4 Motorcycle models
• 5 Suppliers
• 7 References
• 8 External links
Company profile
“Hero” is the brand name used by the Munjal brothers for their flagship company Hero
Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal
family and Honda group both own 26% stake in the Company. In 2010, it was reported
that Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan
'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the
company grow at a double-digit pace since inception. The technology in the bikes of
Hero Honda for almost 26 years (1984–2010) has come from the Japanese
counterpart Honda [6]
During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12%
over last year. In the same year, the company had a market share of 57% in the Indian
market[9]. Hero Honda sells more two wheelers than the second, third and fourth placed
two-wheeler companies put together.[10] Hero Honda's bike Hero Honda Splendor, the
world's largest-selling motorcycle for the years 2001-2003[11], selling more than one
million units per year.[12]
Recognition
The Brand Trust Report [13] published by Trust Research Advisory has ranked Hero
Honda in the 13th position among the brands in India.
Motorcycle models
Achiever
Hunk
Pleasure
It is reported Hero Honda has five joint ventures or associate companies, Munjal
Showa, AG Industries , Sunbeam Auto, Rockman Industries and Satyam Auto
Components, that supply a majority of its components.[14]
Termination of Hero and Honda Joint Venture
In December 2010, the Board of Directors of the Hero Honda Group have decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group of India would buy out the 26% stake of the Honda in
JV Hero Honda.[15]. Under the joint venture Hero Group could not sell into international
markets and the termination would mean that Hero Group can exploit global
opportunities now. Since last 25 years the Hero Group relied on their Japanese partner
Honda for R & D for new bike models. So there are concerns that the Hero Group might
not be able to sustain the performance of the Joint Venture alone.[16]
Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group
and Japanese Honda Motors Company in the year 1983. This joint venture has not
only created the world's single largest two wheeler company but also one of the
most successful joint ventures worldwide. Hero Honda is globally known of being
the most fuel-efficient and the largest CBZ selling Indian motorcycle company.
This is a relationship so harmonious that Hero Honda
has managed to achieve indigenisation of over 95
percent, a Honda record worldwide.
1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Spelendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
CD-DAWN, SPLENDOR +, PASSION +,
2003
KARIZMA
SUPER-SPLENDOR, CD-DELUX,
2005
GLAMOUR, ACHIEVER
The company is committed to provide the customer with excellence. A rich
background of producing high value products at reasonable prices led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer. During 80s, Hero Honda became the first company in India to prove
that it was possible to drive a vehicle without polluting the roads. They company
possess three manufacturing units based at Dharuhera, Gurgaon and Haridwar are
capable to produce 4.4 million units per year. They introduced new generation
motorcycles that set industry benchmarks for fuel thrift and low emission.
The unique features like fuel conservation, safety riding courses and mobile
workshops helped the group reach in the interiors of the country. Well-entrenched
in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and
exports have been steadily on the rise.
Over the years, the Company has received its share of accolades, including the
National Productivity Council's Award ( 1990-91), and the Economic Times -
Harvard Business School Association of India Award, against 200 contenders. The
gross sales of Hero Honda by March end'2008 was 33,371,43 Crores
Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma
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Hero Honda Bikes are reputed for low maintenance and high fuel efficiency. Today, Hero
Honda is taken to be the world's largest two-wheeler manufacturer based in India. Hero Honda
markets two wheelers for the middle-class & upper class families too. Hero Honda bikes price
range are attractive in comparison of other bike manufacturing company. Hero Honda bikes
have been on Indian roads since 1984 when Hero Cycles Ltd. Tied up with Hero Group of India
and Honda of Japan to start a joint venture.
Hero Honda's commitment is to customer - quality & excellence. Hero Honda's key strategy has
been driven by innovation in every sphere of activity. Hero Honda Bikes are manufactured
across three globally benchmarked manufacturing facilities. Hero Honda's product range
includes variety of motorcycles that have set the industry standards across all the market
segments.
Hero Honda two wheelers have been on Indian roads since 1984 when Hero Cycles Ltd. tied up
with Honda Motor Company to start a joint venture. Today, Hero Honda is taken to be the
world's largest two-wheeler manufacturer.
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