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  is a two wheeler manufacturer based in India. Hero Honda is a joint venture between the Hero
[2] [3]
Group of India and Honda of Japan . The company is the largest two wheeler manufacturer in India 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
[O

] [4]
year . The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.

In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.

u



[hide]

 Company profile

O Company Performance

r History of Motorcycle Industry in India

G Termination of Hero and Honda Joint Venture

è References

ë External links

[edit]Company profile

³Hero´ 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)
[5]
has come from the Japanese counterpart Honda

Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These
[6]
plants together are capable of churning out 3 million bikes per year. Hero Honda has a large sales and service network with over
[7]
3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, 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
[8]
had a market share of 57% in the Indian market . Hero Honda sells more two wheelers than the second, third and fourth placed
[9]
two-wheeler companies put together. Hero Honda's bike Hero Honda Splendor, the world's largest-selling motorcycle for the years
[10] [11]
2001-2003 , selling more than one million units per year.
***c
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   ***

· 

 
 
 OO 

o Achiever

o Ambition 133, Ambition 135

o CBZ, CBZ Star, CBZ Xtreme

o CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)

o Glamour, Glamour F.I

o Hunk

o Karizma, Karizma R, Karizma ZMR FI

o Passion, Passion+, Passion Pro

o Pleasure

o 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 [
   O


 [ that manufactured the Lambrettas and Bajaj Auto Ltd. with its association with Piaggio of Italy (manufacturer
[O

]
of Vespa scooters) as the largest manufacturers within the country.

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. 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
[O

]
was twenty-six times its annual output for scooters.

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
[O

]
competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively.

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
[O

]
with better quality. Indian companies had to change to keep up with their global counterparts.

[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
[12]
Hero Honda. . 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
[13]
Venture alone.

[edit]References

1. ƒ "Board of Directors". Hero Honda. Retrieved 2009-10-15.

2. ƒ "Corporate profile". Hero Honda. Retrieved 2010-09-26.

3. ƒ "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. ƒ Forbes, none. "World's most reputed companies (pg.3, rank101 to 150)". Retrieved 2007-07-08.

5. ƒ "Automobile Industry India". Imagin Mor Pty Ltd.

6. ƒ "Hero Honda to up capacity". Financial Express.

7. ƒ "Anniversary Leadership Series, Hero Honda Motors Pvt Ltd". Business Week.

8. ƒ "Hero Honda Sales Increased Up By 10 Percent In March 2009". burnyourfuel.com. Retrieved 2010-12-18.

9. ƒ "Automobile Industry India". Imagin Mor Pty Ltd.

10. ƒ "Key Milestones of Honda". Hero Honda.

11. ƒ "Every Village, Every Home". F  
(12): p. 80. June 2008. ISSN 0015-6914.

12. ƒ "Hero to buy out Honda's stake". Indian Express. Retrieved 2010-12-18.

13. ƒ "Hero Buys Honda's $1.9 Billion Stake in India Motorbike Maker on Exports". Bloomberg. Retrieved 2010-12-18.