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Hero MotoCorp

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Hero MotoCorp
FormerlyHero Honda
Company typePublic
Founded19 January 1984; 40 years ago (1984-01-19)
FounderBrijmohan Lall Munjal
HeadquartersNew Delhi, India
Key people
Production output
Increase 7,587,130 units (2018)
RevenueIncrease 38,643 crore (US$4.6 billion) (2024)[2]
Increase 5,370 crore (US$640 million) (2024)[2]
Increase 3,742 crore (US$450 million) (2024)[2]
Total assetsIncrease 26,153 crore (US$3.1 billion) (2024)[2]
Total equityIncrease 17,835 crore (US$2.1 billion) (2024)[2]
OwnerMunjal family: (40%), Government of India (through public sector banks): (15%), Tata asset management (0.8%),more.
Number of employees
8,599 (2020)[2]
ParentHero Motors Company
SubsidiariesVida EV
Websitewww.heromotocorp.com Edit this at Wikidata

Hero MotoCorp Limited is an Indian multinational motorcycle and scooter manufacturer headquartered in Delhi. It is one of the world's largest two-wheeler manufacturer and has a market share of about 46% in the Indian two-wheeler industry.[3][4] As of 15 May 2024, the market capitalization of the company was 101,500 crore (US$12 billion).[5][6]

The major shareholders of the company include The Munjal family: (40%), the Government of India (through public sector banks):(15%) and Tata asset management: (0.8%).


Hero Honda started its operations in 1984 as a joint venture between Hero Cycles of India and Honda of Japan.[7][8] In June 2012, Hero MotoCorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from Hero Honda.[9]

"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.[10] Munjal family and the Honda group both owned a 26% stake in the company.[11]

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 emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since its inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally.[3] It maintains global industry leaders to date.[3] The technology in the bikes of Hero Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.[12]

Termination of Honda joint venture and the renaming[edit]

Hero Honda Passion
Hero Karizma R

By December 2010, the board of directors of the Hero Honda Group had 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 Bangladesh, Nepal and Sri Lanka) and the termination would mean that Hero Group could now export. From the beginning, the Hero Group relied on their Japanese partner Honda for technology.[14]

Honda exited the joint venture through a series of off-market transactions by giving the Munjal family, which held a 26% stake in the company. Honda, wanting to focus only on its independent fully owned two-wheeler subsidiary, Honda Motorcycle and Scooter India (HMSI), exited Hero Honda at a discount and get over 6,400 crore (equivalent to 140 billion or US$1.7 billion in 2023) for its stake. The discount was between 30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed on 16 December 2010.[15]

The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expired in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda, (mainly managed by the Munjal family), to merge the company's spare parts business with Honda's new fully owned subsidiary, HMSI.[15]

As per the arrangement, it was a two-leg deal: In the first part, the Munjal family, led by Brijmohan Lal Munjal group, formed an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which was backed by bridge loans. This SPV was eventually opened for private equity participation, and those included Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital and The Carlyle Group.[16]

Formation of the new company[edit]

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp Limited on 29 July 2011.[3] The new brand identity and logo of Hero MotoCorp were developed by the British firm Wolff Olins.[17] The logo was revealed on 9 August 2011 in London, to coincide with the third test match between England and India.[17]

Hero MotoCorp can now export to Latin America, Africa, and West Asia.[17] Hero is free to use any vendor for its components instead of just Honda-approved vendors.[17]

On 21 April 2014, Hero MotoCorp announced its plan on a 254 crore (equivalent to 406 crore or US$49 million in 2023) joint venture with Bangladesh's Nitol-Niloy Group in the next five years to set up a manufacturing plant in Bangladesh. The plant started production in 2017 under the name "HMCL Niloy Bangladesh Limited". Hero MotoCorp owns 55% of the manufacturing company and the rest 45% is owned by Niloy Motors (A subsidiary of Nitol Niloy Group).[18] Hero also updated its 100cc engine range in 2014 for 110cc bikes except for Hero Dawn.[19]

Equity investments[edit]

In July 2013, HMC acquired 49.2%[20] shareholding in Erik Buell Racing, a motorcycle sport company which produced street and racing motorcycles based in East Troy, Wisconsin, United States. EBR filed for bankruptcy in 2015[21] and Hero MotoCorp proceed to acquire certain assets for 18.2 crore (equivalent to 31 crore or US$3.7 million in 2023).,[22]

HMC invested 205 crores (US$30.5 million) as a Series B round of funding in October 2016 and gained a 32.31% stake in Ather Energy, a start-up company manufacturing electric scooters. It invested a further 130 crores (US$19 million) in 2018.[23] HMC's share in Ather Energy has grown up to 34.58% since 2016.[24][25]




  • Destini Prime (110 cc)(125 cc)
  • Pleasure+ (110 cc)
  • Xoom (110cc)


  • Hero maestro edge bs6
  • Hero Xtreme 200R
  • Hero Impulse
  • Hero Achiever 150
  • Hero Splendor ISmart

Hero also manufactures the Vida V1 brand of electric scooters as its parent company VIDA is held as a subsidiary of Hero motocorp..

Similarly Surge ,another Startup funded by Hero has unveiled the Surge S32, a unique three-wheeler EV, can seamlessly convert into a two-wheeler scooter.


Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurugram, Neemrana, Haridwar and Halol. A new manufacturing facility is in the process of being set up in Chittoor in Andhra Pradesh. Spread over 600 acres, the company has invested 1600 crores in setting up this greenfield facility.[26] These plants together have a production capacity of over 7.6 million 2-wheelers per year.[27] Hero MotoCorp has a sales [28] and service network with over 6,000 dealerships and service points across India. It has had a customer loyalty program since 2000, called the Hero Honda Passport Program which is now known as Hero GoodLife Program.[29] As of 31 March 2020, the company has an annual capacity of 9.1 million units in its eight manufacturing facilities. Apart from these manufacturing facilities the company also has two R&D facilities, in Germany & Jaipur.[30]

It is reported that Hero MotoCorp 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.[31]

As of March 2013, the company has sold over 7 crores (70 million) of 2-wheelers since its inception in 1984.[3] It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero MotoCorp sells more two-wheelers than the second, third, and fourth-placed two-wheeler companies put together.[3] Its most popular bike, the Hero Splendor sells more than one million units per year.[32]

The company aims to achieve revenues of 64,000 crore (equivalent to 920 billion or US$11 billion in 2023) and volumes of one million two-wheelers by 2016–17. This is in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10% of its revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early 2012. Hero MotoCorp launched XPulse 200 adventure motorcycle in India on 1 May 2019, along with the XPulse 200T touring motorcycle.[33]

In 2019, Hero MotoCorp sold more than 78 lahks (7.8 million) units, the highest of any two-wheeler company in the world. It registered its best-ever monthly performance by selling 7,69,000 units in September 2018. The company registered its best-ever quarterly performance in the April - June 2018 quarter (non-festive time) by selling more than 21 lahks (2.1 million) units.[34]

In January 2021, Hero MotoCorp's production exceeded 100 million.[35] As of 2021, Hero is the only Indian automobile brand to exceed 100 million in production.[35] In February 2021, Hero MotoCorp sold 484,405 units with 0.9 percent growth.[36]

Hero MotoCorp has launched an online virtual showroom.[37]

Listings and shareholding[edit]

The equity shares of Hero MotoCorp are listed on the Bombay Stock Exchange,[38] and the National Stock Exchange of India,[39] where it is a constituent of the NIFTY 50.[40]

As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero MotoCorp. Over 601,000 individual shareholders hold approx. 7.44% of its shares.[41] Foreign Institutional Investors hold approx. 30% shares in the company.[41]

Shareholders of Hero MotorCorp, as of 31 March 2020
Shareholder Percent ownership[41]
Promoter Group 34.6%
Foreign Institutional Investors (FII) 34.3%
Non-Resident Indians (NRIs) 0.4%
Indian Public 8.3%
Insurance companies 8.3%
Mutual Funds / UTI 8.2%
Bodies Corporate 1.40%
Financial Institutions / Banks 2.0%
Others 2.5%
Total 100%


As of 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%). It also had approx 13,800 temporary employees on that date. The company had an attrition rate of 5.1% in the FY 2012–13.[3] The company spent 8,210 crore (equivalent to 150 billion or US$1.9 billion in 2023) on employee benefits during the FY 2012–13.[3]

Awards and recognition[edit]

  • The 2006 Forbes list of the 200 World's Most Respected Companies had Hero Honda Motors ranked at No. 108.[42]
  • The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 7th position among the most trusted brands in India.[43]


The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero Honda Motors Ltd.,[44] which looks after:

During the financial year, the company spent ₹1.4 crores) on corporate social responsibility.


Hero has been the sponsor of the Caribbean Premier League, a twenty-20 cricket franchise, since 2018.[45] Since 2014, Hero has sponsored the Hero World Challenge golf tournament.[46] Hero also sponsors two British events on the Golf European Tour: English Open (known as the Hero Open) and the Betfred British Masters. Hero is also a partner of Spanish club Atlético Madrid.[47]

Hero were also the title sponsors of the first ever senior FIH World Hockey5s in 2022.[48]


Hero sponsored India's football leagues, the Indian Super League, I-League, I-League Qualifiers, Futsal Club Championship, Indian Women's League, Senior NFC for Santosh Trophy, Super Cup, Youth League and previously Federation Cup. They were also the principal sponsors of all India national and developmental football team kits. They pulled out from all the sponsorships in 2023 due to internal issues.[49]

Allegations of tax evasion[edit]

In March 2022, the Income tax department conducted raids on offices and several other locations of Hero MotoCorp. Following this, the department stated in a report that the two-wheeler giant had made bogus claims of expenses to the tune of Rs 1000 crore.[50]

See also[edit]


  1. ^ "Board of Directors - Hero MotoCorp Ltd". Hero MotoCorp. Archived from the original on 17 July 2021. Retrieved 19 January 2014.
  2. ^ a b c d e f "Hero Motocorp Profit & Loss account, Hero Motocorp Financial Statement & Accounts" (PDF). BseIndia. Retrieved 8 May 2024.
  3. ^ a b c d e f g h "Annual Report 2016-17" (PDF). Hero MotoCorp. 3 April 2018. Archived (PDF) from the original on 17 July 2021. Retrieved 3 April 2018.
  4. ^ "15 biggest bike companies in the world". Yahoo Finance. 31 December 2023.
  5. ^ "Hero MotoCorp share hits 52-week high post Q3 earnings". Business Today. 5 February 2021. Archived from the original on 5 February 2021. Retrieved 5 February 2021.
  6. ^ Mohan, Ashwin (17 October 2023). "Hero MotoCorp arm Hero FinCorp picks 8 i-banks for mega IPO of around Rs 4,000 crore". Moneycontrol. Retrieved 30 October 2023.
  7. ^ "Milestones". Hero MotoCorp. Retrieved 15 January 2014."Honda to Sell Hero Stake at Half Market Price". The Wall Street Journal. 9 March 2011. Archived from the original on 14 March 2016. Retrieved 15 January 2014.
  8. ^ "Hero gets Honda stake at big discount". The Economic Times. 9 March 2011. Retrieved 15 January 2014.
  9. ^ "Investment arm to merge with Hero MotoCorp". The Hindu. 5 June 2012. Retrieved 15 January 2014.
  10. ^ "Hero MotoCorp: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Hero MotoCorp". www.ndtv.com. 30 October 2023. Retrieved 30 October 2023.
  11. ^ "Hero Honda announces realignment of Munjal family stake in the company". The Economic Times. 19 July 2010. Retrieved 30 October 2023.
  12. ^ "Automobile Industry India". Imagin Mor Pty Ltd. Archived from the original on 17 March 2012. Retrieved 14 September 2010.
  13. ^ "Hero to buy out Honda's stake". The Indian Express. Retrieved 18 December 2010.
  14. ^ "Munjal family & Honda Motor to discuss Hero Honda split today". The Times of India. 16 December 2010.
  15. ^ a b "Hero, Honda split terms finalized – The Times of India". The Times of India.
  16. ^ Hero approves Honda's exit from Hero Honda, India Infoline news service, archived from the original on 21 September 2012, retrieved 25 November 2012
  17. ^ a b c d "Hero goes global; to unveil new brand identity in London – Corporate News". livemint.com. 25 July 2011. Retrieved 4 August 2011.
  18. ^ "Hero MotoCorp forms JV in Bangladesh; to set up manufacturing plant". 21 April 2014. Archived from the original on 3 July 2015. Retrieved 2 July 2015.
  19. ^ Mathai, Lijo (7 November 2019). "Hero 100-110cc motorcycles that could have been gamechangers: Passion Pro TR, Splendor Classic and more". Financialexpress. Retrieved 30 October 2023.
  20. ^ "Hero MotoCorp picks up 49.2% stake in US-based Erik Buell Racing for $25 million". The Economic Times. 1 July 2013. Retrieved 19 January 2014.
  21. ^ "Erik Buell Racing Closes Down".
  22. ^ "Business News Today: Read Latest Business news, India Business News Live, Share Market & Economy News".
  23. ^ "Hero Motocorp Share Price, Hero Motocorp Stock Price, Hero Motocorp Ltd. Stock Price, Share Price, Live BSE/NSE, Hero Motocorp Ltd. Bids Offers. Buy/Sell Hero Motocorp Ltd. news & tips, & F&O Quotes, NSE/BSE Forecast News and Live Quotes". www.moneycontrol.com. Retrieved 27 May 2021.
  24. ^ "Hero MotoCorp To Invest Up To ₹ 205 Crore In Ather Energy". NDTV Auto.
  25. ^ "Hero MotoCorp to refuel Ather Energy with $19 mn". VCCircle. 25 July 2018. Archived from the original on 30 July 2018. Retrieved 30 July 2018.
  26. ^ "Hero MotoCorp starts new work in Andhra Pradesh". The Economic Times. 23 March 2018. Retrieved 23 July 2012.
  27. ^ "Hero MotoCorp plans 6th plant, scouts for the site in South India". The Economic Times. 17 June 2014. Retrieved 17 July 2017.
  28. ^ "Hero MotoCorp August sales up 7%, TVS down 1% — Bajaj Auto numbers awaited". Business Insider.
  29. ^ "Hero MotoCorp New Two Wheelers, Motorcycles, Two Wheelers in India". goodlife.heromotocorp.com. Retrieved 17 July 2017.
  30. ^ "Annual Report, 2019-20" (PDF).
  31. ^ Nandini Sen Gupta (10 March 2011). "Hero-Honda split: Honda restrategizing its vendor policy". The Economic Times.
  32. ^ "Every Village, Every Home". Forbes. Vol. 183, no. 12. June 2008. p. 80. ISSN 0015-6914.
  33. ^ Mitra, Anirban (1 May 2019). "Hero Xpulse 200T: Hero launches XPulse 200, XPulse 200T and Xtreme 200S, starting Rs 94,000". The Times of India. Retrieved 30 October 2023.
  34. ^ MotorCorp, Hero (2018–19). "Annual report" (PDF).
  35. ^ a b "ഹീറോ: നിർമാണത്തിൽ 10 കോടി പിന്നിട്ട ഏക ഇന്ത്യൻ ഓട്ടോമൊബൈൽ ബ്രാൻഡ്". Mathrubhumi (in Malayalam).
  36. ^ M, Surendhar (29 March 2021). "Hero MotoCorp Feb 2021 Sales Analysis - Splendor, Xpulse, Passion, Xtreme". Gaadiwaadi.com.
  37. ^ Sharma, Swati (13 May 2021). "Hero MotoCorp Launches Virtual Showroom To Sell Vehicles". motorgyan.com.
  38. ^ "Hero MotoCorp Ltd". BSEindia.com. Retrieved 23 January 2014.
  39. ^ "Hero MotoCorp Limited". NSE India. Archived from the original on 16 April 2016. Retrieved 23 January 2014.
  40. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Archived from the original on 13 October 2013. Retrieved 23 January 2014.
  41. ^ a b c "Shareholding Pattern - March 2020". Hero Motor Corp. Archived from the original on 27 May 2021. Retrieved 27 May 2021.
  42. ^ "The World's Most Reputable Companies". Forbes. 21 November 2006. Retrieved 15 January 2014.
  43. ^ "India's Most Trusted Brands 2014". Archived from the original on 2 May 2015.
  44. ^ "Big benefits up to Rs 27,000 are available on HERO VIDA V1 PRO". Bikenwheel. Retrieved 30 October 2023.
  46. ^ "Hero World Challenge Sponsors". Hero World Challenge. Retrieved 20 October 2023.
  47. ^ "Hero MotoCorp announced as the Title Partner of Hero Open". Challenge Tour. 14 July 2020. Retrieved 30 October 2023.
  48. ^ "Hero named title sponsor of FIH Hockey5s Lausanne 2022". International Hockey Federation. 3 May 2022. Retrieved 20 October 2023.
  49. ^ Joshi, Rutvij. "Hero MotoCorp pulls out of ISL & Indian football sponsorship". Khel Now. Retrieved 20 October 2023.
  50. ^ "Rs 1,000 crore bogus expenses detected in I-T raid on Hero Motocorp; stock slides 7%". Moneycontrol. 29 March 2022. Retrieved 29 March 2022.