History of Hero MotoCorp

The principal owner of the Hero two-wheeler manufacturing unit – Hero Cycles – was founded in 1956 in
Ludhiana, Punjab, by the Munjal brothers. In 1975, Hero Cycles became the largest manufacturer of
bicycles in India. An agreement of collaboration and formation of a joint venture was signed between Hero
Group of India and Honda of Japan in 1983. A year later, Hero Honda Motors Limited came into existence.
In 2001, the company attained the status of being the largest manufacturer of two-wheelers in the world.
The Japanese partner Honda walked out of the partnership in 2010, selling the 26 percent of stakes it held
to Hero. The company was named Hero MotoCorp in August 2011.

INTRODUCTION
Hero MotoCorp Limited is the world's largest manufacturer of two-wheelers. The company has four
manufacturing facilities namely Dharuhera and Gurgaon in Haryana, Haridwar in Uttarakhand and
Neemrana in Rajasthan. The company is based in New Delhi, India.

The company offers a range of bikes starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG,
Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour
F1. It also has an offering called Achiever in 135 cubic centimeter segment. In the 150 cubic centimeter
and above the company offers brands like Hunk, CBZ X-treme, Karizma and the Karizma ZMR. It also
offers a 100 cubic centimeter scooter, Pleasure.

Hero MotoCorp Limited was incorporated in the year 1984 with the name Hero Honda Motors Ltd. The
company was established as a joint venture company between Honda Motor Company of Japan and Hero
Group. In the year 1983, they signed a joint collaboration agreement and formed the company. The joint
venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's
single largest two wheeler company but also one of the most successful joint ventures worldwide.
• In the year 1985, the company commenced their commercial production at Dharuhera plant in
Haryana and introduced their first motorcycle, CD 100 in the market. In the year 1989, they
launched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new
motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their
extraordinary product, Splendor in the market.
In the year 1997, the company inaugurated their second manufacturing facility at Gurgaon in
Haryana. Also, they introduced new motorcycle model, Street in the market. In the year 1999, they
launched Hero Honda CBZ, the first 150cc motorcycle in the Indian two wheeler industry. In the
year 2001, the company introduced new models, Passion and Joy in the market. In the next year,
they introduced new models, Dawn and Ambition in the market.
In the year 2003, the company launched new motorcycle models namely, CD Dawn, Splendor+ and
Passion Plus in the market. Also, they launched Hero Honda Karizma, the industry's first 223cc
motorcycle. In the year 2004, they introduced new models, Ambition 135 and CBZ* in the market.
During the year, they renewed the joint technical agreement with the Honda Motors Company,
Japan.
In the year 2005, the company launched Super Splendor, CD Deluxe, Glamour and Achiever in the
market. In the year 2006, the company forayed into scotter segment and launched 100cc gearless
scotter, Pleasure in the market. In the year 2007, the company launched Splendor NXG, CD Deluxe,
Passion Plus and Hunk in the market.
During the year 2007-08, the company commissioned their third plant at Haridwar in Uttarakhand
with an initial installed capacity of 500,000 units. This plant had lean manufacturing and practices
that ensure efficiency. During the year, the company launched new models (including variants)
including Splendor NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative
Splendor+ and a refreshed version of Pleasure.
• During the year 2008-09, the company increased the installed capacity of Motorised 2 wheelers upto
350CC engine by 1800000 Nos to 5200000 Nos. Also, they launched eight models: Passion Pro (100
cubic capacity-4 Stroke), CBZ-Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics,
Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and HUNK
Special Edition. Also, they launched new motorcycle model, Karizma - ZMR in the market.
During the year 2009-10, the company increased the installed capacity of Motorised 2 wheelers upto
350CC engine by 200000 Nos to 5400000 Nos. The company launched nine new models during the
year.
During the year 2010-11, the company launched six new models including variants of existing
models successfully. They refreshed Glamour and Glamour FI. They introduced the New Hunk,
Super Splendor and Splendor Pro. The company launched the new upgraded versions of CBZ
Xtreme and Karizma. Also, they breached the landmark 5 million figure cumulative sales in a single
year.
During the year, the Indian Promoter Group of the company, which comprised of Hero Investments
Pvt Ltd (HIPL), Bahadur Chand Investment Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero
Cycles) re-aligned the shareholding in the company, following a family agreement. As a result, Hero
Cycles transferred its shareholding in the company to HIPL on May 28, 2010. As a result of these
transactions, the Indian Promoter Group of the company now comprises of HIPL and BCIPL owned
and controlled entirely by the Munjal Family headed by Brijmohan Lall Munjal.
Also, during the year, the Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered
into a Share Transfer Agreement (the Agreement) on January 22, 2011. As per the terms of the
Agreement, Honda had agreed to transfer its entire shareholding of 26% in the Company to the
Indian Promoter Group, bringing an end to the joint venture between the two promoter groups of the
company. The acquisition was completed on March 22, 2011 and the shares held by Honda were
transferred to the Indian joint venture partner.
• In addition to the Agreement, the Indian Promoter Group and Honda also entered into a License Agreement on
January 1, 2011. As per this agreement, Honda has given to the company, the right and license to manufacture,
assemble, sell and distribute certain products and their service parts under their Intellectual Property Rights.

In July 2011, the company changed their name from Hero Honda Motors Ltd to Hero MotoCorp Ltd.

In February 2012, the company entered into a strategic partnership with Erik Buell Racing (EBR) of USA for
contemporary technology and design inputs to enable the company to launch high end bikes for the domestic and
international markets.

In 2013, Hero Motocorp commenced construction of its new plant & Global Parts Centre. The company
Commences Construction of Its 'GAME-CHANGING' Centre of Global Innovation And Research & Design.

In 2014, Hero Motocorp Heralds A New Era Of Technology Leadership. The company Sets New Benchmark For
The Global Two Wheeler Industry. The company Launches Splendor Ismart With Game Changing I3s Technology.
The company also rides Into A Greener Tomorrow With 'GARDEN Factory‘
• In 2015, Hero MotoCorp launched a new entry level commuter, the HF Dawn. During the year, the company has
been allocated a 592-acre site to facilitate development of its Rs 1600-crore Greenfield manufacturing unit in
Andhra Pradesh. HMCL Americas INC enters into 'Settlement Agreement' to Acquire EBR's Consulting Business.
The company commences operation in their first ever plant outside India established in Villa Rica, Colombia.

On 29 September 2015, Hero MotoCorp launched two scooters under the brands Maestro Edge and Duet.

In February 2016, Hero MotoCorp showcased three new bikes Splendor iSmart 110, the Xtreme 200 S, the XF3R
and an electric scooter the Duet E at Auto Expo, a trade show in New Delhi. On 10 March 2016, Hero MotoCorp
formally inaugurated its world-class Global Centre of Innovation and Technology' (CIT) in Jaipur, Rajasthan. Built
with an investment of Rs 850 crore, the CIT will design and develop world-class products for global markets.

In April 2016, Hero MotoCorp launched a drive against unscrupulous traders selling counterfeit Hero spare parts.
On 14 July 2016, Hero MotoCorp launched the new Splendor iSmart 110, the first motorcycle to be developed
completely in-house with Hero's own technology. To commemorate the landmark 70 million in cumulative
production of two-wheelers, Hero MotoCorp on 26 September 2016 launched a Limited Edition of a new premium
motorcycle Achiever 150.
• The Board of Directors of Hero MotoCorp at its meeting held on 26 October 2016 approved an investment
of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy
Private Limited. Ather is a Bangalore-based technology start-up engaged in the business of designing and
manufacturing smart Electric Vehicles (EV) and associated charging infrastructure.

On 10 November 2016, Hero MotoCorp unveiled its new Dawn 125 motorcycle at the EICMA Motorcycle
show in Milan, Italy. As part of Hero MotoCorp's market-specific product strategy, the Dawn 125
motorcycle has been developed specifically for the Africa region.

On 12 January 2017, Hero MotoCorp launched new Glamour motorcycle in Argentina, its first-ever global
launch of a new product outside India. On 3 April 2017, Hero MotoCorp announced that the company
clocked its highest-ever sales in a financial year at 66,63,903 units in FY 2017 compared to 66,32,322 units
it had sold in the previous fiscal (FY 2016).

In May 2017, Hero MotoCorp commenced commercial production at the second global manufacturing
facility in Bangladesh. On 3 October 2017, Hero MotoCorp announced that it has set a new global
benchmark in the two-wheeler industry, surpassing the seven lakh sales mark in any month. Riding on
robust demand for its range of two-wheelers, the company registered its highest-ever sales for any month,
despatching 720,739 units in September 2017.

On 11 October 2017, Hero MotoCorp announced that it has set a new global record, clocking 2 million unit
sales in Q2 September 2017. Hero MotoCorp sold 20,22,805 units of two-wheelers in Q2 September 2017,
recording 11% growth over the corresponding quarter in the previous fiscal.

On 7 November 2017, Hero MotoCorp unveiled the Xpulse Concept motorcycle as a world premier at the
EICMA annual trade show in Milan, Italy. On 21 December 2017, Hero MotoCorp unveiled three new
motorcycles - the 125cc Super Splendor, the 110cc Passion PRO and the 110cc Passion XPRO - to further
augment its dominant leadership in the domestic market. On 22 December 2017, Hero MotoCorp
announced that it will be increasing the ex-showroom prices of its motorcycles by about Rs 400 per model
with effect from 1 January 2018 to partially off-set rising input costs.
• Hero MotoCorp surpassed the landmark seven million units in cumulative sales in a calendar year in 2017.
The company sold a record 7,207,363 units of two-wheelers in the calendar year in 2017.

Hero Motocorp Plant Locations in

India
• Hero MotoCorp has manufacturing facilities located at five locations in India. The five manufacturing
plants of Hero MotoCorp have a combined production capacity of more than 9 million vehicles annually.

Satyavedu, Andhra Pradesh

• Dharuhera, Haryana
• Gurgaon, Haryana
• Neemrana, Rajasthan
• Haridwar, Uttarakhand
• Hero MotoCorp has over 7,000 dealership and service centre units in 29 states and four union territories of
India.
Hero Motocorp Current Models
• Being the largest manufacturer of two-wheelers in India and the world, Hero MotoCorp produces a
diversified range of models and variants to cater to the needs and demands of its customers.
Following are the current models and their starting prices:
Karizma ZMR (Rs. 1,05,500)

• Karizma (Rs. 83,900)

• Xtreme Sports (Rs. 72,625)

• Xtreme (Rs. 71,925)

• Hunk (Rs. 69,725)

• Impulse (Rs. 71,400)

• Achiever (Rs. 61,425)

• Ignitor (Rs. 60,500)

• Glamour Programmed Fi (Rs. 65,600)

• Glamour (Rs. 55,925)

• Super Splendor (Rs. 53,600)

• Splendor iSmart (Rs. 50,000)

• Splendor Pro Classic (Rs. 50,500)

• Splendor Pro (Rs. 47,650)

• Splendor+ (Rs. 45,850)

• Passion Xpro (Rs. 49,525)

• Passion Pro (Rs. 47,650)

• Passion Pro TR (Rs. 53,500)

• HF Deluxe Eco (Rs. 46,150)

• HF Deluxe (Rs. 42,100)

• HF Dawn (Rs. 39,470)

• Maestro (Rs. 48,050)

• Pleasure (Rs. 44,650)

 Hero Motocorp Future
• Hero motorcycles are a household name in India and are famous worldwide. The continuous manufacturing
of quality products over the years helped Hero MotoCorp achieve the status of being the largest
manufacturer of two-wheelers in the world, as being the most sought-after brand is a per-requisite for being
the biggest producer. A vision and a strategy for the company to strive hard to keep moving towards
perfection have been laid down. The company's vision document says, “The story of Hero Honda began
with a simple vision - the vision of a mobile and an empowered India, powered by its two wheelers. Hero
MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility
solutions with renewed focus on expanding company's footprint in the global arena. Hero MotoCorp’s key
strategies are to build a robust product portfolio across categories, explore growth opportunities globally,
continuously improve its operational efficiency, aggressively expand its reach to customers, continue to
invest in brand building activities and ensure customer and shareholder delight”.

Milestones achieved by Hero

Motocorp
• 1,00,000th motorcycle produced in 1987.
• New motorcycle model - 'CD 100 SS' introduced and 500,000th motorcycle in 1991 produced.
• Hero Honda Splendor was declared the world's largest selling two-wheeler in 2000.

• 4,000,000th motorcycle produced in 2000.

• 5,000,000th motorcycle produced in 2001.

• Declared the largest manufacturer of two-wheelers in the world in 2001.

• Became the first Indian company to have sold 70,00,000 units in 2003.

• Achieved the 15 million production mark in 2006.

• Crossed the 20 million production mark in 2007.

• Achieved the 25 million production milestone in 2008.

• Crossed the landmark figure of 5 million cumulative sales in a single year in 2011.

• Crossed the 50 million production milestone in 2013.

 Awards won by HeroMotocorp
• Received the 1991 Harvard Business School Award for Corporate Performance by Economic Times.

• Received the NSIC award- National Award for outstanding contribution to the Development of Indian
Small Scale Industry by the President of India in 1995.

• Received the 1999 National Productivity Award for the Best Productivity Award in the category of
Automobile & Tractor by the Vice President of India.

• Received the Most Respected Company Award in Automobile Sector by Business World in 2003.

• Received the 2006 Top Indian Company in the Automobile - Two Wheeler sector by American Express
Corporate Awards.

• CBZ Xtreme won the 'Bike of the Year' award at the NDTV Profit Car India & Bike India Awards 2007.

• Received the Business Leadership Award by NDTV Profit in 2008.

• Hunk won Bike of the Year at the TopGear Design Awards in 2008.

• Won Two-wheeler Manufacturer of the Year at the NDTV Profit Car & Bike Awards 2009.

• Won the Company of the Year award at the Economic Times Awards for Corporate Excellence 2008-09 in
2010.
• Adjudged as the best brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand"
2011 survey.

• Adjudged the Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business Leadership
Awards 2012.

• Received Business Leader of the Year Award by the President of India, Shri. Pranab Mukherjee, at the
AlMA Managing India Awards 2013.

Two Wheeler Manufacturers

• TVS Motor Company

• Honda Motorcycle and Scooter India (Pvt.) Ltd

• LML (India) Limited

• Hero Honda Motors India Limited

• Royal Enfield Motors India Ltd

• Yamaha Motors India Pvt. Ltd

• Mopeds in India