The journey of the now called 'Hero MotoCorp', started with the collaboration of Hero Cycles, an Indian cycle manufacturer with the Japanese company, Honda Motor Co Ltd, went through their split and finally reached its destiny of becoming the leading motorcycle manufacturer of the world.
Hero Honda
In 1984 Hero Cycles joined hands with Honda Motors to start a joint-venture, Hero Honda. The motorcycles of Hero Honda became an instant hit in the country. Its fuel efficiency and low cost made it desirable and affordable for the middle-class people. Soon it became a status symbol and one could see roads with just Hero Hinda bikes running on it. It literally drove over its rival to become one of the leading two-wheeler manufacturing company in the country.
CD 100 was the first successful motorcycle launched by Hero Honda in the year 1985. It became so popular that even the army started using it. Then came the Sleek in the year 1989 which specifically targeted the youngsters. this was followed by Splendor, one of the most successful bike from the company in 1995. Then came the first utility bike called Street in 1997. Soon came the CBZ in 1999 which again became very much popular and was the first 150cc bike in India. And this list continues with Passion and Joy in 2001, Dawn and Ambition in 2003, the 223cc bike Karizma, and countless beautiful yet affordable bikes.
These bikes were like a family member to the customers, and people today also still keep it even after it stopped working. Such was the impact of Hero Honda motorcycles. People were proud of having a Hero Honda in their house.
Brijmohan Lall Munjal - Founder and Patriarch of India's largest two-wheeler company, the Hero MotoCorp
End of Hero Honda
During the financial year 2010-2011, the Indian Promoter Group of the company which included Hero Investments Pvt Ltd (HIPL), Bahadur Chand Investment Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-arranged the shareholding in the company following a family agreement. As a result Hero Cycles transferred its shares in the company to HIPL on May 28, 2010. In accordance with 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 same year, the Indian Promoter Group and Honda Motor Co Ltd Japan (Honda) entered into a Share Transfer Agreement on January 22, 2011.
As per the terms of the Agreement, Honda 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 paperwork 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.
Right after this in July 2011 the company changed its name from Hero Honda Motors Ltd to Hero MotoCorp Ltd.
Hero MotoCorp
After its split with Honda, the company started selling its past projects under the name of Hero MotoCorp. In 2014 the company launched its path-breaking Splendor iSmart with I3s technology. The company also established its first-ever plant outside India, in Colombia.
In 2016 Hero launched three new bikes, Splendor iSmart 110 the Xtreme 200 S the XF3R and an electric scooter the Duet E at Auto Expo, New Delhi. In the same year, Hero inaugurated its Rs. 850 crore, world-class 'Global Centre of Innovation and Technology' in Jaipur, Rajasthan. It is aimed to design and develop world-class products for global markets. In order to commemorate the landmark of 70 million in cumulative production of two-wheelers, Hero MotoCorp on 26 September 2016 launched the limited edition of a new premium motorcycle, Achiever 150. The company sold a record-breaking 7207363 units of two-wheelers in the calendar year in 2017.
"Over the next five-seven years, we are aiming to create the next generation of mobility solutions that are relevant to customers across the world." - Dr. Pawan Munjal, Chairman, Hero MotoCorp
Apart from bikes
Apart from bikes Hero MotoCorp is also involved in many sponsorship deals. It is currently a Sponsor of the Caribbean Premier League Twenty-20 Cricket Franchise 2018, Hero also sponsors both of India's top-tier men's football leagues, the I-League and the India Super League, men's second-tier league I-League 2nd division, women's top-tier league Indian Woman'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 part sponsors, two British events on the Golf European Tour: English Open (known as the Hero Open) and Betfred British Masters.
Since its split, many new two-wheelers have been launched by the company, all being a hit globally and at present, the company has four manufacturing facilities in India namely Dharuhera and Gurgaon in Haryana, Haridwar in Uttarakhand, and Neemrana in Rajasthan.
Each year the sales are breaking records and Hero MotoCorp is currently, the leading manufacturer of two-wheelers in the world.
Future Plans
Hero MotoCorp has announced that it aims to sell as much as ten lakh units in the overseas market in the next 5-6 years. Also, the company is looking forward to investing in a whopping sum of Rs. 1,500 crore to expand its range.
Regarding this, an official was stated saying, "We will be launching some bikes with engine capacity above 150cc to 400cc in coming years".
Mr. Anil Dua, Senior Vice President (Marketing & Sales), Hero MotoCorp once said, “We are looking at an exponential increase in export numbers … In 5-6 years of time, we aim to sell a million bikes (every year) in international markets, which will be 10 percent of our total business. HMC's current export contribution is less than 2 percent of total sales”.
*source - Wikipedia, Hero Motocorp, Business Standards
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