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Hero MotoCorp

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Hero Motocorp Ltd
Company typePublic company
BSE: 500182
NSE: HEROMOTOCO
BSE SENSEX Constituent
IndustryAutomotive
Founded19 January 1984 (Gurgaon)
FounderBrijmohan Lall Munjal
HeadquartersNew Delhi, India
Key people
Brijmohan Lall Munjal (Chairman)
Pawan Munjal (MD & CEO)[1]
ProductsMotorcycles, scooters, three-wheeler vehicles and spare parts
RevenueIncrease₹19,669.290 crore (US$2.4 billion)[2]
ParentHero Group
Websitewww.heromotocorp.com

Hero Motocorp Ltd. (BSE: 500182, NSE: HEROMOTOCO) formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles 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, When Honda decided to move out of the joint venture,[6] Hero Group bought the shares held by Honda.[7] Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.[8]

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 [9]

Hero MotoCorp 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.[10] Hero MotoCorp 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,[11] called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built. [12]

History

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.[3]

  • 1956 -- Formation of Hero Cycles in Ludhiana(majestic auto limited)
  • 1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
  • 1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed
  • 1984 -- Hero Honda Motors Ltd. incorporated
  • 1985 -- Hero Honda motorcycle CD 100 launched.
  • 1989 -- Hero Honda motorcycle Sleek launched.
  • 1991 -- Hero Honda motorcycle CD 100 SS launched.
  • 1994 -- Hero Honda motorcycle Splendor launched.
  • 1997 -- Hero Honda motorcycle Street launched.
  • 1999 -- Hero Honda motorcycle CBZ launched.
  • 2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
  • 2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.
  • 2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
  • 2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.
  • 2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.
  • 2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.
  • 2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.
  • 2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited edition of Hero Honda motorcycle Hunk launched
  • 2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
  • 2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched.
    New licensing arrangement signed between Hero and Honda.

August-- Hero and Honda part company, thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. November-- Hero launched its first ever Off Road Bike Named Hero "Impulse".

Termination of Honda joint venture

Main article: Hero Honda split

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 would buy out the 26% stake of the Honda in JV Hero Honda.[13] Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.[14]

Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff Olins.[15] The logo was revealed on 9 August 2011 in London, the day before the third test match between England and India.[15]

Hero MotoCorp can now export to Latin America, Africa and West Asia.[15] Hero is free to use any vendors for its components instead of just Honda-approved vendors.[15]

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.[16] 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 sells more than one million units per year.[17]

Recognition

File:Hero Honda Logo.svg
Logo of Hero Honda, as the company was known till Aug. 2011

The Brand Trust Report [18] published by Trust Research Advisory has ranked Hero Honda in the 13th position among the brands in India.

Motorcycle models

See also: Category:Hero Honda motorcycles
  • Sleek
  • 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

Suppliers

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.[19]

References

  1. ^ "Hero MotoCorp Board of Directors". Hero MotoCorp. Retrieved 2011-08-10.
  2. ^ "Standalone Result". Bombay Stock Exchange. Retrieved 2011-08-10.
  3. ^ a b Key Milestones of Hero MotoCorp Hero MotoCorp, August, 2011.
  4. ^ "Two-wheeler makers ride high in May". Business Standard.[dead link]
  5. ^ Forbes, none. "World's most reputed companies". Retrieved 2007-07-08. {{cite news}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help) [dead link]
  6. ^ "Honda Motor Co., Ltd.'s To Sell Hero Honda Motors Limited's Stake At Half Market Price-WSJ". Reuters. Retrieved 2011-08-10.
  7. ^ "Honda Motor Co., Ltd. Formally Decides To Sell Stake In India Motorcycle Joint Venture With Hero Honda Motors Limited-DJ". Reuters. Retrieved 2011-08-10.
  8. ^ "Hero relaunches itself, sans Japanese major". Business Today. Retrieved 2011-08-10.
  9. ^ a b "Automobile Industry India". Imagin Mor Pty Ltd.
  10. ^ "Hero Honda to up capacity". Financial Express.
  11. ^ "Anniversary Leadership Series, Hero Honda Motors Pvt Ltd". Business Week.
  12. ^ "Superhero Dreams". Business_Today_(business_magazine).
  13. ^ "Hero to buy out Honda's stake". Indian Express. Retrieved 2010-12-18.
  14. ^ Sharma, Subramaniam; Philip, Siddharth (2010-12-16). "Hero Buys Honda's $1.9 Billion Stake in India Motorbike Maker on Exports". Bloomberg L.P. Retrieved 2010-12-18.
  15. ^ a b c d "Hero goes global; to unveil new brand identity in London - Corporate News". livemint.com. 2011-07-25. Retrieved 2011-08-04.
  16. ^ "Hero Honda Sales Increased Up By 10 Percent In March 2009". burnyourfuel.com. Retrieved 2010-12-18.
  17. ^ "Every Village, Every Home". Forbes. Vol. 183, no. 12. June 2008. p. 80. ISSN 0015-6914.
  18. ^ "India's most trusted brands - Rediff.com Business". Rediff.com. 2011-01-20. Retrieved 2011-08-04.
  19. ^ Nandini Sen Gupta (2011-03-10). "Hero-Honda split: Honda restrategizing its vendor policy". Economic Times.
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