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Hero Honda
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Hero Honda Motors Ltd.

Type Public company BSE:HEROHONDA M

Industry Automotive
Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarters New Delhi[clarification needed], India
Brijmohan Lal Munjal (chair and founder)

Key people
Toshiaki Nakagawa (joint managing director)
Pawan Munjal (Managing Director & CEO)[1]
Products Motorcycles, Scooters
Revenue U$ 2.8 billion[citation needed]
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[2]. The company is
the largest two wheeler manufacturer in India [3] and also has been referred to as the
world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it
produced 1.3 million motorbikes in a single year[citation needed]. The 2006 Forbes 200 Most
Respected companies list has Hero Honda Motors ranked at 108.[4]

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
o 2.1 Hero Honda motorbike models
• 3 History of Motorcycle Industry in India
• 4 Termination of Hero and Honda Joint Venture
• 5 References

• 6 External links

[edit] 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 [5]

Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana
and at Haridwar in Uttarakhand. These plants together are capable of churning out 3
million bikes per year.[6] Hero Honda has a large sales and service network with over
3,000 dealerships and service points across India. Hero Honda has a customer loyalty
program since 2000,[7] called the Hero Honda Passport Program.

[edit] Company Performance

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[8]. Hero Honda sells more two wheelers than the second, third and fourth placed
two-wheeler companies put together.[9] Hero Honda's bike Hero Honda Splendor, the
world's largest-selling motorcycle for the years 2001-2003[10], selling more than one
million units per year.[11]

[edit] Hero Honda motorbike models

See also: Category:Hero Honda motorcycles

• Achiever
• Ambition 133, Ambition 135
• CBZ, CBZ Star, CBZ Xtreme
• CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
• Glamour, Glamour F.I
• Hunk
• Karizma, Karizma R, Karizma ZMR FI
• Passion, Passion+, Passion Pro
• Pleasure
• Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG,Splendor PRO

[edit] History of Motorcycle Industry in India

India became the second largest two wheeler manufacturer in the world and starting in
the 1950s with the Automobile Products of India (API) that manufactured the Lambrettas
and Bajaj Auto Ltd. with its association with Piaggio of Italy (manufacturer of Vespa
scooters) as the largest manufacturers within the country.[citation needed]

The license raj that existed between the 1940s to 1980s in India did not allow foreign
companies to enter the market and imports were tightly controlled. This regulatory maze,
before the economic liberalization, made business easier for local players to have a
seller’s market.[neutrality is disputed] Customers in India were forced to wait up to 12 years to buy
a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing
department, only a dispatch department. By the year 1990, Bajaj had a waiting list that
was twenty-six times its annual output for scooters.[citation needed]

The motorcycle segment had the same long wait times with three manufacturers: Royal
Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-
stroke engine at that time and took the higher end of the market but there was little
competition for their customers. Ideal Jawa and Escorts took the middle and lower end of
the market respectively.[citation needed]

In the mid-1980s, the Indian government regulations changed and permitted foreign
companies to enter the Indian market through minority joint ventures. The two-wheeler
market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj
Kawasaki and Kinetic Motor Company (Kinetic Honda). The entry of these foreign
companies changed the Indian market dynamics from the supply side to the demand side.
With a larger selection of two-wheelers on the Indian market, consumers started to gain
influence over the products they bought and raised higher customer expectations. The
industry produced more models, styling options, prices, and different fuel efficiencies.
The foreign companies new technologies helped make the products more reliable and
with better quality. Indian companies had to change to keep up with their global
counterparts.[citation needed]

[edit] 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. [12]. 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.[13]

[edit] References
1. ^ "Board of Directors". Hero Honda.
http://www.herohonda.com/co_board_directors.htm. Retrieved 2009-10-15.
2. ^ "Corporate profile". Hero Honda.
http://www.herohonda.com/co_corporate_profile.htm. Retrieved 2010-09-26.
3. ^ "Two-wheeler makers ride high in May". Business Standard } url =
http://www.business-standard.com/india/news/two-wheeler-makers-ride-high-in-
may/21/40/396783/.
4. ^ Forbes, none. "World's most reputed companies (pg.3, rank101 to 150)".
http://www.forbes.com/business/2006/11/20/leadership-companies-reputation-
lead-managing-cx_hc_1120rep_list_3.html. Retrieved 2007-07-08.
5. ^ "Automobile Industry India". Imagin Mor Pty Ltd.
http://imaginmor.com/automobileindustryindia.html.
6. ^ "Hero Honda to up capacity". Financial Express.
http://www.financialexpress.com/news/hero-honda-to-up-capacity/169728/.
7. ^ "Anniversary Leadership Series, Hero Honda Motors Pvt Ltd". Business Week.
http://www.businessweek.com/adsections/2002/sap/hero.htm.
8. ^ "Hero Honda Sales Increased Up By 10 Percent In March 2009".
burnyourfuel.com. http://burnyourfuel.com/2009/04/02/bikes/hero-honda-sales-
increased-up-by-10-percent-in-march-2009/. Retrieved 2010-12-18.
9. ^ "Automobile Industry India". Imagin Mor Pty Ltd.
http://imaginmor.com/automobileindustryindia.html.
 10. ^ "Key Milestones of Honda". Hero Honda.
http://www.herohonda.com/co_milestones.htm.
11. ^ "Every Village, Every Home". Forbes 183 (12): p. 80. June 2008. ISSN 0015-
6914.
12. ^ "Hero to buy out Honda's stake". Indian Express.
http://www.indianexpress.com/news/Hero-to-buy-out-Honda-s-stake-in-26-year-
old-JV/725937. Retrieved 2010-12-18.
13. ^ "Hero Buys Honda's $1.9 Billion Stake in India Motorbike Maker on Exports".
Bloomberg. http://www.bloomberg.com/news/2010-12-16/hero-group-to-buy-
honda-s-26-stake-in-their-hero-honda-venture-in-india.html. Retrieved 2010-12-
18.

[edit] External links

• Official website

[show]
v•d•e
Major and notable Indian motorcycle marques

[hide]
v•d•e
Two wheelers in India

Avenger · Boxer · CT 100 · Discover · Eliminator · Legend · Pulsar · Pulsar

Bajaj 220-Fi (2007–2009) · Pulsar 220-i (2009–) · Pulsar 135 · Platina · Wind · XCD

Kristal · Chetak · Saffire · Sunny · Wave · Super

Hero
Achiever · CBZ · Hunk · Karizma · Passion · Splendor · CBZ Xtreme
Honda
Honda
HMSI Activa · Aviator · CBF125 · CB Twister · Dio · Stunner · Unicorn

Royal
Enfield Bullet · Thunderbird

TVS Flame · Apache

Enticer · Crux · Gladiator · Libero · RX-135 · RX 100 · YZF-R15 · FZ16 · FZ-S ·

Yamaha
Fazer · RX-Z
Others Kinetic · Ideal Jawa Yezdi · LML (Lohia) · Rajdoot 350

See also Cars in India · Transport in India

Companies portal

[show]
v•d•e
Honda Motor Company

[show]
v•d•e
BSE Sensex companies of
India

</noinclude>

[show]
v•d•e
S&P CNX Nifty companies of India

Retrieved from "http://en.wikipedia.org/wiki/Hero_Honda"

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based in New Delhi | Companies listed on the Bombay Stock Exchange | Motor vehicle
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