Hero MotoCorp

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Hero MotoCorp Limited
Founded19 January 1984; 37 years ago (1984-01-19)
FounderBrijmohan Lall Munjal
HeadquartersNew Delhi, India
Key people
Production output
Increase 7,587,130 units (2018)
RevenueIncrease 29,614 crore (US$4.2 billion) (2020)[2]
Increase 3,958 crore (US$550 million) (2020)[2]
Increase 3,633 crore (US$510 million) (2020)[2]
Total assetsIncrease 18,749 crore (US$2.6 billion) (2020)[2]
Total equityIncrease 14,096 crore (US$2.0 billion) (2020)[2]
Number of employees
8,599 (2020)[2]
ParentHero Motors Company
WebsiteHero Motocorp

Hero MotoCorp Limited, formerly Hero Honda, is an Indian multinational motorcycle and scooter manufacturer headquartered in New Delhi, India. The company is the largest two-wheeler manufacturer in the world,[3] and also in India, where it has a market share of about 37.1% in the two-wheeler industry.[3][4] As of 27 May 2021, the market capitalization of the company was 59,600 crore (US$8.4 billion).[5]


Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes called Hero Group, not to be confused with the Hero Group food company of Switzerland) of India and Honda of Japan.[6][7] 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.[8]

"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 owned 26% stake in the Company.

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. In 2001, the company became the second largest two-wheeler manufacturing company in India and globally.[3] It maintains global industry leadership 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.[9]

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.[10] Under the joint venture Hero Group could not export to international markets (except Nepal, Bangladesh 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 the technology in their bikes.[11]

The Japanese automaker exited the joint venture through a series of off-market transactions by giving the Munjal family—which held a 26% stake in the company—an additional 26%. 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 120 billion or US$1.6 billion in 2019) 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.[12]

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.[12]

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 thrown open for private equity participation, and those in the fray included Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.[13]

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.[14] The logo was revealed on 9 August 2011 in London, to coincide with the third test match between England and India.[14]

Hero MotoCorp can now export to Latin America, Africa and West Asia.[14] Hero is free to use any vendor for its components instead of just Honda-approved vendors.[14]

On 21 April 2014, Hero MotoCorp announced its plan on a 254 crore (equivalent to 327 crore or US$46 million in 2019) 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 the 55% of the manufacturing company and rest 45% is owned by Niloy Motors (A subsidiary of Nitol-Niloy Group).[15] Hero also updated its 100cc engine range in 2014 for 110cc bikes except Hero Dawn.

Equity investments[edit]

In July 2013, HMC acquired 49.2%[16] 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[17] and Hero MotoCorp proceed to acquire certain assets for 18.2 crore (equivalent to 25 crore or US$3.5 million in 2019).,[18]

HMC invested 205 crore (US$30.5 million) as Series B round of funding in October 2016 and gained a 32.31% stake in Ather Energy, a startup company manufacturing electric scooters. It invested a further 130 crore (US$19 million) in 2018.[19] HMC share in Ather Energy has grown up to 34.58% since 2016.[20][21]


Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurugram, Neemrana, Haridwar, and Halol . These plants together have a production capacity of over 76 lakh (7.6 million) 2-wheelers per year.[22] Hero MotoCorp has a sales [23] and service network with over 6,000 dealerships and service points across India. It has a customer loyalty program since 2000, called the Hero Honda Passport Program which is now known as Hero GoodLife Program.[24] As of 31 March 2020 the company has annual capacity of 9.1 million units in its 8-world class manufacturing facilities. Apart from these manufacturing facilities the company also has 2 state of the art R&D facilities, in Germany & Jaipur respectively. [25]

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.[26]

As of March 2013, the company has sold over 7 crore (70 million) 2-wheelers since its inception in 1984.[3] It sold 60.7 lakh (6.07 million) 2-wheelers in 2012, out of which 55 lakh (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 10 lakh units per year.[27]

The company has a stated aim of achieving revenues of 64,000 crore (equivalent to 740 billion or US$10 billion in 2019) and volumes of 10 lakh 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% 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.

In 2019, Hero MotoCorp sold more than 78 lakh (7.8 million) units, which is the highest by any two-wheeler company in the world. It registered its best-ever monthly performance by selling 7,69,000 units in the month of September 2018. In the April - June 2018 quarter (non-festive time), the company registered its best-ever quarterly performance by selling more than 21 lakh (2.1 million) units.[28]

In January 2021, Hero MotoCorp's production exceeded 100 million.[29] As of 2021, Hero is the only Indian automobile brand to cross the 100 million mark in production.[29] In February 2021, Hero MotoCorp sold 484,405 units with 0.9 percent growth.[30]

Hero MotoCorp has launched an online virtual showroom. The virtual showroom would enable customers to discover, engage and purchase the company’s motorcycles and scooters digitally.[31]

Listings and shareholding[edit]

The equity shares of Hero MotoCorp are listed on the Bombay Stock Exchange,[32] and the National Stock Exchange of India,[33] where it is a constituent of the NIFTY 50.[34]

As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero MotoCorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares.[35] Foreign Institutional Investors hold approx. 30% shares in the company.[35]

Shareholders (as on 31 March 2020) Shareholding[35]
Promoter Group 34.60%
Foreign Institutional Investors (FII) 34.3%
Non Resident Indians (NRIs) 0.4%
Indian Public 8.30%
Insurance companies 8.30%
Mutual Funds / UTI 8.20%
Bodies Corporate 1.40%
Financial Institutions / Banks 2.00%
Others 2.50%
Total 100.0%


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 120 billion or US$1.7 billion in 2019) 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 #108.[36]
  • The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 7th position among the most trusted brands in India.[37]
  • It received the 'Best Value for Money Bike Maker' and 'Best Advertising' in Two Wheelers Category at the Auto India Best Brand Awards 2012.


The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was known as Hero Honda Motors Ltd., that 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. Hero also sponsors India's top men's football league the Indian Super League, men's second-tier I-League, third-tier I-League 2nd Division, women's top-tier Indian Women's League and also the domestic football tournament Super Cup. They are also the principal sponsors of the Indian football team's training kit and the developmental team Indian Arrows. Since 2014, Hero has sponsored the Hero World Challenge golf tournament. Hero also sponsors, or partly sponsors, two British events on the Golf European Tour: English Open (known as the Hero Open) and the Betfred British Masters.

See also[edit]


  1. ^ "Board of Directors - Hero MotoCorp Ltd". Hero MotoCorp. Retrieved 19 January 2014.
  2. ^ a b c d e f "Hero Motocorp Profit & Loss account, Hero Motocorp Financial Statement & Accounts" (PDF). Hero Motocorp Limited. Retrieved 20 October 2020.
  3. ^ a b c d e f g h i "Annual Report 2016-17" (PDF). Hero MotoCorp. 3 April 2018.
  4. ^ "Honda Motorcycle overtakes Bajaj as 2nd largest domestic two-wheeler maker". Business Line. 10 April 2013. Retrieved 15 January 2014.
  5. ^ "Hero MotoCorp share hits 52-week high post Q3 earnings". Business Today. Retrieved 5 February 2021.
  6. ^ "Milestones". Hero MotoCorp. Retrieved 15 January 2014.<|url=https://www.wsj.com/news/articles/SB10001424052748704758904576187842700072676 |title=Honda to Sell Hero Stake at Half Market Price | work=The Wall Street Journal |date=9 March 2011 |accessdate=15 January 2014}}
  7. ^ "Hero gets Honda stake at big discount". The Economic Times. 9 March 2011. Retrieved 15 January 2014.
  8. ^ "Investment arm to merge with Hero MotoCorp". The Hindu. 5 June 2012. Retrieved 15 January 2014.
  9. ^ "Automobile Industry India". Imagin Mor Pty Ltd. Archived from the original on 17 March 2012. Retrieved 14 September 2010.
  10. ^ "Hero to buy out Honda's stake". The Indian Express. Retrieved 18 December 2010.
  11. ^ "Munjal family & Honda Motor to discuss Hero Honda split today". The Times of India. 16 December 2010.
  12. ^ a b "Hero, Honda split terms finalized – The Times of India". The Times of India.
  13. ^ Hero approves Honda's exit from Hero Honda, India Infoline news service
  14. ^ 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.
  15. ^ "Hero MotoCorp forms JV in Bangladesh; to set up manufacturing plant". Retrieved 2 July 2015.
  16. ^ "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.
  17. ^ http://www.cycleworld.com/2015/04/15/erik-buell-racing-files-for-bankruptcy-protection-and-ceases-operations/
  18. ^ http://articles.economictimes.indiatimes.com/2015-07-28/auto/64957907_1_hero-motocorp-ltd-settlement-agreement-erik-buell-racing
  19. ^ "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.
  20. ^ "Hero MotoCorp To Invest Up To ₹ 205 Crore In Ather Energy". NDTV Auto.
  21. ^ "Hero MotoCorp to refuel Ather Energy with $19 mn". VCCircle. 25 July 2018. Retrieved 30 July 2018.
  22. ^ "Hero MotoCorp plans 6th plant, scouts for site in South India". The Economic Times. 17 June 2014. Retrieved 17 July 2017.
  23. ^ "Hero MotoCorp August sales up 7%, TVS down 1% — Bajaj Auto numbers awaited". Business Insider.
  24. ^ "Hero MotoCorp New Two Wheelers , Motorcycles, Two Wheelers in India". goodlife.heromotocorp.com. Retrieved 17 July 2017.
  25. ^ "Annual Report, 2019-20" (PDF).
  26. ^ Nandini Sen Gupta (10 March 2011). "Hero-Honda split: Honda restrategizing its vendor policy". The Economic Times.
  27. ^ "Every Village, Every Home". Forbes. 183 (12). June 2008. p. 80. ISSN 0015-6914.
  28. ^ MotorCorp, Hero (2018–19). "Annual report" (PDF).
  29. ^ a b "ഹീറോ: നിർമാണത്തിൽ 10 കോടി പിന്നിട്ട ഏക ഇന്ത്യൻ ഓട്ടോമൊബൈൽ ബ്രാൻഡ്". Mathrubhumi (in Malayalam).
  30. ^ M, Surendhar (29 March 2021). "Hero MotoCorp Feb 2021 Sales Analysis - Splendor, Xpulse, Passion, Xtreme". Gaadiwaadi.com.
  31. ^ Sharma, Swati (13 May 2021). "Hero MotoCorp Launches Virtual Showroom To Sell Vehicles". motorgyan.com.
  32. ^ "Hero MotoCorp Ltd". BSEindia.com. Retrieved 23 January 2014.
  33. ^ "Hero MotoCorp Limited". NSE India. Retrieved 23 January 2014.
  34. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 23 January 2014.
  35. ^ a b c "Shareholding Pattern - March 2020". Hero Motor Corp. Retrieved 27 May 2021.
  36. ^ "The World's Most Reputable Companies". Forbes. 21 November 2006. Retrieved 15 January 2014.
  37. ^ "India's Most Trusted Brands 2014". Archived from the original on 2 May 2015.

External links[edit]