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Indian Two wheeler industry, Key players and Types of two-wheelers

India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies lead to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry.

Kinetic Honda was introduced in the Indian market during the mid 80s. The main feature of Kinetic Honda is its ease of use. This helped the youngsters and the women to buy scooters.

Key players in the Two-wheeler Industry :After facing its worst recession during the early 1990s, the two-wheeler industry bounced back with a 25% increase in volume sales in February 1995. The scooters are considered as family vehicles. There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India :There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.

Motorcycles in India :Bikes comprise a major segment of Indian two wheeler industry. 

Company : Hero Honda Company : Bajaj Auto Ltd

* Bajaj Avenger* Bajaj CT 100* Bajaj Platina* Bajaj Discover DTSi* Bajaj Pulsar DTSi* Bajaj Wave* Bajaj Wind 125* Sonic DTSi

* Hero Honda Achiever* Hero Honda CD Dawn* Hero Honda CD Deluxe* Hero Honda Glamour* Hero Honda Glamour-Fi* Hero Honda Karizma* Hero Honda Passion Plus* Hero Honda Pleasure* Hero Honda Super Splendor* Hero Honda Splendor NXG* Hero Honda CBZ X-Treme

Company : Kinetic Motor Company

Company : TVS MOTOR Company : Yamaha Motor India

* Kinetic Aquila* Kinetic Boss* Kinetic Challenger* Kinetic Comet* Kinetic GF* Kinetic Stryker* Kinetic Velocity

* TVS Apache* TVS Centra* TVS Fiero* TVS Star* TVS Victor

* Yamaha CruxS* Yamaha G5* Yamaha Gladiator

Scooters in India :The scooter and the scooterette share in the Indian two wheeler market is 13.4%. The main models available in India are Bajaj Chetak, Honda Eterno, Kinetic Blaze, LML NV SPL and LML Select II.

Scooterettes/Mopeds :TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS also launched India's first indigenous scooterette: Scooty in 1994. This segment has about one-fourth share in the Indian two wheeler industry. The major models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure, Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

TWO WHEELERS IN INDIAThe feeling of freedom and being one with the Nature comes only from riding a two wheeler. Indians prefer the two wheelers because of their small manageable size, low maintenance, pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace. Thus, in India, we would see swanky four wheels jostling with our ever reliable and sturdy steed: the two wheelerIndia is the second largest producer and manufacturer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world.In the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML.

The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike.The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot.The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990.In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in company either reporting losses or a fall in profits.

Key players in the Two-wheeler Industry:

There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.

Motorcycles in India: Bikes comprise a major segment of Indian two wheeler industry.

Company : Bajaj Auto Ltd Company : HERO HONDA* Bajaj Avenger* Bajaj CT 100* Bajaj Platina* Bajaj Discover DTSi* Bajaj Pulsar DTSi* Bajaj Wave* Bajaj Wind 125* Sonic DTSi * Hero Honda Achiever* Hero Honda CD Dawn* Hero Honda CD Deluxe* Hero Honda Glamour* Hero Honda Glamour-Fi* Hero Honda Karizma

* Hero Honda Passion Plus* Hero Honda Pleasure* Hero Honda Super Splendor* Hero Honda Splendor NXG* Hero Honda CBZ X-TremeCompany : Kinetic Motor Company Company : TVS Motor Company : Yamaha Motor India * Kinetic Aquila* Kinetic Boss* Kinetic Challenger* Kinetic Comet* Kinetic GF* TVS Apache* TVS Centra* TVS Fiero* TVS Star* TVS Victor * Yamaha CruxS* Yamaha G5* Yamaha GladiatorPROFILE OF HERO HONDA

History: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. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission.Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda.Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Honda's extensive sales and service network now spans over 3000 customer touch points.Hero Honda values its relationship with customers having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India’s motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.''

Hero Honda’s Mission: Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

MR. BRIJMOHAN LAL MUNJAL, CHAIRMAN AND MR. PAWAN MUNJAL, MD.

Hero Honda’s Mandate: Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.HERO HONDA KARIZMA

Hero Honda Karizma was the first real sports bike in India. The bike addresses to those who have a passion for speed and styling and head-turning looks. It has 17 ps power thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and styling. Disc breaks and Mag wheels makes Karizma the safest jet on the road.

Company Stroke Maximum Power DisplacementHero Honda Motors India Ltd. 4-Stroke 16.8 bhp @ 7000 rpm 232 cc

Striking Features:1 Style 2 Sporty position of the seat. 3 It stands on its feet even at speeds reaching up to 130 kmph.4 Fuel Efficiency.

Indian Two-Wheeler Industry

ICRA Sectoral Analysis - Jan 2005

INTRODUCTION

The Indian automotive industry consists of five segments: commercial vehicles; multi-utility vehicles & passenger cars; two-

 Federation of Automobile Dealers Associations

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wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic market and 453,591 units exported during the first nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties.

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around 77.5% of the total vehicles sold in the period mentioned.

Figure 1Segmental Growth of the Indian Two Wheeler

Industry (FY1995-2004)

 After facing its worst recession during the early 1990s, the industry bounced back with a 25% increase in volume sales in FY1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% that year. However, sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure 1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.

Demand Drivers

The demand for two-wheelers has been influenced by a number of factors over the past five years. The key demand drivers for the growth of the two-wheeler industry are as follows:

 ▪  Inadequate public transportation system, especially in the semi-urban and rural areas;

▪ Increased availability of cheap consumer financing in the past 3-4 years;

▪ Increasing availability of fuel-efficient and low-maintenance models;

▪ Increasing urbanisation, which creates a need for personal transportation;

▪ Changes in the demographic profile;

▪ Difference between two-wheeler and passenger car prices, which makes two-wheelers the

entrylevel vehicle;

▪ Steady increase in per capita income over the past five years; and

▪ Increasing number of models with different features to satisfy diverse consumer needs.

 While the demand drivers listed here operate at the broad level, segmental demand is influenced by segment-specific factors.

MARKET CHARACTERISTICS

Demand

Segmental Classification and Characteristics

The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other subsegments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4-stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub-segments, product groups within these sub-segments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three broad segments are discussed in Table 1.

Table 1

Two-Wheelers: Comparative Characteristics

  Scooter Motorcycle Moped

Price*(Rs. as in January 2005)

> 22,000 > 30,000 > 12,000

Stroke2-stroke, 4-stroke

Mainly 4-stroke

2-stroke

Engine Capacity (cc) 90-150100, 125, > 125

50, 60

Ignition Kick/ElectronicKick/Electronic

Kick/Electronic

Engine Power (bhp) 6.5-9 7-8 and 2-3

above

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency (kms per litre)

50-75 50-80+ 70-80

Load Carrying High Highest Low

*Ex-showroom MumbaiCompiled by INGRES

 Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998, accounting for around 42% of the two-wheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively, that year). However, the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively.

Figure 2 Trends in Segmental Share in Industry Sales

(FY1996-9MFY2005)

 While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy growth of 20%, indicating a clear shift in consumer preference. This shift, which continues, has been prompted by two major factors: change in the country's demographic profile, and technological advancements.

Over the past 10-15 years the demographic profile of the typical two-wheeler customer has changed. The customer is likely to be salaried and in the first job. With a younger audience, the attributes that are sought of a two-wheeler have also changed. Following the opening up of the economy and the increasing exposure levels of this new target audience, power and styling are now as important as comfort and utility.

The marketing pitch of scooters has typically emphasised reliability, price, comfort and utility across various applications. Motorcycles, on the other hand, have been traditionally positioned as vehicles of power and style, which are rugged and more durable. These features have now been complemented by the availability of new designs and technological innovations. Moreover, higher mileage offered by the executive and entry-level models has also attracted interest of two-wheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising that the new set of customers has preferred motorcycles to scooters. With better ground clearance, larger wheels and better suspension offered by motorcycles, they are well positioned to capture the rising demand in rural areas where these characteristics matter most.

Scooters are perceived to be family vehicles, which offer more functional value such as broader seat, bigger storage space and easier ride. However, with the second-hand car market developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration and more environment-friendliness. Given the declining difference in prices of scooters and motorcycles in the past few years, the preference has shifted towards motorcycles. Besides a change in demographic profile, technology and reduction in the price difference between motorcycles and scooters, another factor that has weighed in favour of motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay an up-front premium while purchasing a

motorcycle in exchange for lower maintenance and a relatively higher resale value.

Supply

Manufacturers

As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Figure 3 Shares of Two-Wheeler Manufacturers in Industry Sales

(FY2000-9MFY2005)

 Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it

changed its product mix but has declined since then.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly through: licensing and technical collaboration (as in the case of Bajaj Auto and LML); and joint ventures (HHML).

A third form - that is, the 100% owned subsidiary route - found favour in the early 2000s. A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances of some major two-wheeler manufacturers in India.

Besides the below mentioned technology alliances, Suzuki Motor Corporation has also followed the strategy of joint ventures (SMC reportedly acquired equity stake in Integra Overseas Limited for manufacturing and marketing Suzuki motorcycles in India).

Table 2

Technological tie-ups of Select Players

  Nature of Alliance Company Product

Bajaj Auto Technological tie-up Kawasaki Heavy Industries Ltd, Japan

Motorcycles

Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers

Technological tie-up Kubota Corp, Japan Diesel Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie-up Hyosung Motors & Machinery Inc

Motorcycles

KEL Tie up for manufacturingand distribution

Italjet, Italy Scooters

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

Hero Motors

Technological tie-up Aprilia of Italy Scooters

Compiled by INGRES

 With the two-wheeler market, especially the motorcycle market, becoming extremely competitive and the life cycle of products getting shorter, the ability to offer new models to meet fast changing customer preferences has become imperative. In this context, the ability to deliver newer products calls for sound technological backing and this has become one of the critical differentiating factor among companies in the domestic market. Thus, the players have increased their focus on research and development with some having indigenously developed new models as well as improved technologies to cater to the domestic market. Further, with exports being one of the thrust areas for some Indian two-wheeler companies, the Indian original equipment manufacturers (OEMs) have realised the need to upgrade their technical capabilities. These relate to three main areas: fuel economy, environmental compliance, and performance. In India, because of the cost-sensitive nature of the market, fuel efficiency had been an interest area for manufacturers.

It is not only that the OEMs are increasing their focus on in-house R&D, they also provide support to the vendors to upgrade the technology and also assist them striking technological alliances.

TRENDS IN THE TWO-WHEELER INDUSTRY

Companies raising capacity to meet the growing demand

All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI and others, have increased their manufacturing capacities in the recent past. The total capacity of these players stood at 7.8 million units per annum (FY2003) as against total market sales of 3.8 million units in FY2002. Most of the players have either expanded capacity, or converted their existing capacities for scooters and mopeds into those for manufacturing motorcycles. The move has been prompted by the rapid growth reported by the motorcycles segment since FY1995.

HHML increased the capacity of its plants from 1.8 million units in FY2003 to 2.25 million in FY2004 and has been able to achieve 92% capacity utilisation. In light of the increase in demand for motorcycles, the company plans to set up a new plant. Since its entry in the Indian market during FY2002, HMSI has aggressively expanded its capacity.

Niche markets also witnessing intense competition

A significant trend witnessed over the past five years is the inclination of consumers towards products with superior features and styling. Better awareness about international models has raised expectations of consumers on some key attributes, especially quality, styling, and performance. High competitive intensity has prompted players to launch vehicles with improved attributes at a price less than the competitive models.

In an effort to satisfy the distinct needs of consumers, producers are identifying emerging consumer preferences and developing new models. For instance, in the motorcycles segment, motorcycles with engine capacity over 150cc, is a segment that has witnessed significant new product launches and hence, become more competitive. The indigenously launched Pulsar 150 had met with success on its launch and thereafter, a host of models have been launched in this segment by various players. While Bajaj Auto launched the Pulsars (150 and 180 cc) with digital twin spark technology (DTSi) that offers a powerful engine and fuel efficiency of 125 cc models, model launches by other players include LML's Graptor/Beamer, HMSI's Unicorn besides the HHML's CBZ (improved version launched in 2003-04) and TVS' Fiero F2. Moreover, in the recent past, the motorcycle segment has witnessed launch of vehicles with higher engine capacity (higher than 150cc) and power (higher than 15bhp). These include models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird followed by HHML's Karisma. Besides these, KEL has launched premium segment motorcycles GF 170 and GF Laser besides launching products from the portfolio of its technology partner (Hyosung's Aquila and Comet 250). The products in this segment cater for style conscious consumers. Quite a few players are developing models combining features such as higher engine capacity" optimum mix of power and performance, and superior styling. However, the extent of shift to these products would depend on the positioning of such products in terms of price.

In the scooters segment, the market for plastic-bodied variomatic scooters continues to witness growth in the scenario of overall decline in scooter volumes. Higher volumes and growth are especially true for certain scooter models, such as Honda Activa, that brought in new technology (besides variomatic transmission) to further differentiate themselves. Thus, the need to differentiate and create a niche has led to companies strengthening their research and development (R&D) capabilities and reducing the development time for new models.

Increasing focus on exports

For the first nine months of FY2005, two-wheeler exports increased by 37% over the corresponding previous, led mainly by motorcycles even as exports of other two-wheelers were healthy. While motorcycle exports increased by 40%, scooter and moped exports increased by 29% and 27% respectively.

Motorcycle exports by Bajaj Auto, HHML and TVS have reported a tobust growth in FY2005 and are expected to increase further in the medium term.

Table 3

Two-Wheeler Exports from India (in numbers)

  FY2000

FY2001

FY2002

FY2003

FY2004

CAGR (FY2000-

04)

9MFY2005

Scooters 20,188 25,625 28332 30116 53148 27.4 44832

Motorcycles

35,295 41,339 56,880 126122

187287

51.4 188807

Mopeds 27,754 44,174 18,971 23330 24234 -3.3 22739

Total 83,237 111,138

104183

179568

264669

33.5 256378

Source: SIAM

 Although the Indian two-wheeler manufacturers have forayed on their own in their target export markets, there have been instances of tie-ups with the technology partners. Bajaj Auto's tie-up with Kawasaki to jointly market Bajaj products in Philippines is a case in point. Under the tie-up, M/s Kawasaki Motors Philippines Corporation has been appointed as exclusive distributors to market select Bajaj two-wheelers that include Byk, Caliber 115 and Wind 125. These vehicles are being sent to Philippines in the completely built unit (CBU) form. Other strategy of expanding international presence considered by few players is that of setting up assembly lines in select South East Asian countries either on their own or in partnership with local players. Besides, plans of select overseas technology partners to source from their Indian partners and plans of global majors to develop their Indian manufacturing unit as a sourcing hub may also lead to increase in two-wheeler exports from India.

Companywise two-wheeler exports since FY2000 are presented in the following Table 4.

Table 4

Company-wise two-wheeler exports (FY2000-9MFY2005)

 FY200

0FY200

1FY200

2FY200

3FY200

4CAGR

(FY2000-04)

9MFY2005

Bajaj Auto

14924 16112 28527 53366 90210 56.8 87225

HHML 10061 10324 13023 21165 39254 40.5 43441

HMSI 0 0 1293 10916 31414 n.a 27734

TVS 7265 6621 7765 9636 28093 40.2 36666

Yamaha 15197 20446 20321 45546 32906 21.3 27539

Others 35790 57635 32752 39053 42792 4.6 33773

Total 83237 111138 103681 179682 264669 33.5 256378

Source: SIAM

 Vehicle Emission Norms

Emission norms for all categories of petrol and diesel vehicles at the manufacturing stage were introduced for the first time in India in 1990 and were made stricter in 1996. When the 1996 norms were introduced, it resulted in certain models being withdrawn from the market. With Stage I India 2000 emission norms coming into place, the cost of developing suitable technology has remained high.

The emission norms that are currently in force for two-wheelers and three-wheelers are more stringent than the Euro II norms. The roadmap suggested for emission norms for two/three-wheelers by the Expert Committee on Auto Fuel Policy is as follows:

For two-/three-wheelers the emission norms are recommended to be the same in the entire country:

For new vehicles:

Bharat Stage II norms throughout the country from April 1, 2005

Bharat Stage III norms to be applicable preferably from April 1, 2008 but not later than April 1, 2010.

For reducing pollution from in-use vehicles

 ▪ 

New pollution under control (PUC) checking system for all categories of vehicles to be put in place by April 1, 2005

▪ Inspection & maintenance (I&M) system for all categories of vehicles to be put place by April 1, 2010

▪ Performance checking system of catalytic converters and conversion kits installed in vehicles to be put in place by April 1, 2007.

 Table 5 presents the emission norms for two-wheelers that were in place in the past, the India 2000 emission norms, and the norms that have been implemented for April 2005 (Stage II) and proposed for 2008 (Stage III).

Table 5

Exhaust Emission Norms

VehiclePollutan

tsOld

Norms 1996

2000

2005*

2008/10**

Tow-wheelers(gm/Km)

CO 12-30 4.5 2.0 1.5 1

HC+Nox 8-12 3.6 2.0 1.5 1

Three-wheelers(petrol)

CO 12-30 6.8 4.0 2.25 1.25

HC+Nox 8-12 5.4 1.5 2 1.25

Three-wheelers(Diesel)

CO       1 1.1

HC+Nox       0.85 1

PM       0.10 0.05

CO: Carbon Monoxide; HC: Hydrocarbon; Nox: Nitrogen Oxide, PM: Particulate Matter, * Maximum Sulphur parts per million (ppm) permissible of 150 and ** Maximum Sulphur ppm permissible of 50 Compiled by INGRES

 To be able to meet the exhaust norms, the Auto Fuel Policy has suggested following technologies:

Table 6

Technologies for meeting the emission norms for Spark Ignited Vehicles

  2/3 - wheelers  

Level of Emission Norms

2-Stroke Technology 4-Stroke Technology

Euro I/India 2000 Intake, exhaust, combustionoptimisation Catalytic converter

4-Stroke enginetechnology

Euro II/Bharat Stage II Secondary air injection CaatalyticConverter

Hot tube Secondaryair injection

Euro III/Bharat Stage III

Fuel injection Catalytic converter

Fuel injectionCarburetor + catalytic converter

Euro IV/Bharat Stage IV

To be developed Learn burn Fuel injection+ catalytic converter

Source: National Auto Fuel Policy

 The adoption of new technologies for compliance with stricter emission norms may affect the prices of vehicles. Some two-wheeler manufacturers are testing electronic fuel injection systems for motorcycles. To begin with, electronic systems are likely to be introduced in premium segment motorcycles.

Fiscal Policy

The Union Budget for 2001-02 had lowered the excise duty on two-wheelers (with engine capacity in excess of 75 cc) from 24% to 16%. The manufacturers responded to this by passing on a relatively large part of the excise cut to customers. The Union Budget thereafter have left the excise duty on two-wheelers unchanged. But the Union Budget 2004-05 provides for a weighted deduction of 150% for investments in R&D. This may facilitate increasing R&D allocations and allow for improvement in the technical as well as product development skills of the Indian companies.

Indian Auto Policy 2002

The Government of India approved a comprehensive automotive policy in March 2002, the main proposals of which are as under:

Foreign direct investment : Automatic approval is proposed to be granted to foreign equity investment up to 100% for manufacture of automobiles and components.

Import tariff : Import tariffs are proposed to be fixed at a level such that they facilitate the development of manufacturing capabilities as opposed to mere assembly.

Incentives for R&D : The weighted average tax deduction under the Income Tax Act, 1961 for automotive companies is proposed to be increased from current level of 125% (The weighted average deduction for R&D was increased to 150% in the Union Budget 2004-05). Further, the policy proposes to include vehicle manufacturers for a rebate on the applicable excise duty for every 1% of the gross turnover of the company expended during the year on R&D.

Environmental aspects : Adequate fiscal incentives are proposed to promote the use of low-emission auto fuel technology (in line with the Auto Fuel Policy). The auto policy states the Government's intent to align domestic policy with the international practice of imposing higher road tax on old vehicles so as to discourage their use.

Two

wheeler Industry in India

The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India.

Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units.

The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family.

Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50’s. Until 1958, API and Enfield were the only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971.

The condition of motorcycle manufacturers was no different. Until the mid 80’s, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield. The two-wheeler market was opened to foreign manufacturers in the mid 80’s. The industry, which had seen a smooth ride before, faced fierce foreign competition.

Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology

motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity.

In the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooterettes created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine.

The change in the government’s policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.

The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour.

Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology

History of Two Wheelers

motorcycles have made their debut around the 1950s; this section looks at the two wheelers which have over the years caught the imagination of country. It was in the year 1954 that the Indian government ordered for total number of 800 motorcycles to man the Pakistani borders. In came the Bullets which were initially launched in England as a 350cc bike and it was upgraded to 500cc a year or so later. These bikes have remained unaltered, barring some cosmetic changes which have undergone over the years. Thus one can say without much of a doubt that the 1955 Bullet was one of the initial hits of the Indian two-wheeler industry and till today it continues to be a darling of the motorcycle enthusiasts.

Enfield Bullet had a close competition with another sturdy bike named Rajdoot; as the bike was strong enough to handle the rough Indian roads. The company had roped in Indian He-man Dharmendra for the promotion of the bike. With more than 1.6 million

vehicles on the road the Rajdoot motorcycle was one of the initial hits of the earlier years of two-wheeler history in the country.

When heavy motorcycles were the order of the day, a relatively lighter bike had caught on the imagination of the Indian two wheeler user. Ind- Suzukia bike launched by the then TVS Suzukigroup was an instant hit; however the bike could not sustain it's initial success due to the high import content in the vehicle and less of localization.

In scooters Bajaj Chetak has been hugely responsible for adding momentum to the transport system of the country, till today it remains one of the most successful brands to have come out of the Bajaj stable.

The scooter is named after the horse of legendary Rana Pratap Singh. These sets of two wheels have become a part of the Indian milieu and are often considered a representative of the Indian middle class aspiration. Very few two-wheelers have been able to emulate the success, which Bajaj Chetak has achieved over the years.

Similarly LML Motors enjoyed a reasonable success with the launch of LML Select which came with new age technology and improved performance.

Today newer models of two-wheeler are entering the market everyday, slowly pushing these names down the memory lane. However names like Chetak, Rajdoot and Bullet will always find a mention in the history of two-wheelers in the country.

HERO HONDA

Hero Honda Motors Ltd. is a result of the joint venture between India's Hero Group and Japanese Honda Motors Company in the year 1983. This joint venture has not only created the world's single largest two wheeler company but also one of the most

successful joint ventures worldwide. Hero Honda is globally known of being the most fuel-efficient and the largest CBZ selling Indian motorcycle company.

This is a relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a

Honda record worldwide.

The below chart shows the golden years in the history of HERO HONDA :-

1985 CD-100

1989 SLEEK

1991 CD-100 SS

1994 Spelendor

1997 Street

1999 CBZ

2001 PASSION

2002 DAWN, AMBITION

2003CD-DAWN, SPLENDOR +, PASSION +,KARIZMA

2005SUPER-SPLENDOR, CD-DELUX, GLAMOUR, ACHIEVER

The company is committed to provide the customer with excellence. A rich background of producing high value products at reasonable prices led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle

manufacturer. During 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. They company possess three manufacturing units based at Dharuhera, Gurgaon and Haridwar are capable to

produce 4.4 million units per year. They introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission.

The unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been

steadily on the rise.

Over the years, the Company has received its share of accolades, including the National Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders. The gross sales of Hero

Honda by March end'2008 was 33,371,43 Crores

TWO WHEELERS

>> MOTORCYCLES

Hero Honda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe

Hero Honda CD 100 Hero Honda CD 100 SS Hero Honda Glamour

Hero Honda Glamour

Glamour

Glamour - FI

Hero Honda Splendor

Splendor + Super Splendor

Splendor NXG

Hero Honda Passion Plus

Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma

Karizma ZMR FI

Hero Honda Hunk    

>> SCOOTERETTES/MOPEDS

Hero Honda Pleasure Hero Ankur Hero Gizmo

Hero Panther Hero Puch Automatic Hero Sakhti 3G

Hero Stepmatic Hero Street Hero Winner

Hero Stepmatic Hero Puch Automatic Hero Sakthi 3G

Hero Winner    

Type Public company BSE:HEROHONDA M

Industry Automotive

Founded 1984 in Gurgaon, Haryana, India

Headquarters

Chairman Brijmohan Lal Munjal

New Delhi India

Key people Toshiaki Nakagawa (joint managing director)Pawan Munjal (Managing Director & CEO)[1]

Products Motorcycles, Scooters

Revenue U$ 2.8 billion[citation needed]

Website www.Herohonda.com

Corpoate Profile

Hero Honda Motors Ltd. is the world's largest manufacturer of two –

wheelers, based in India.

The company is a joint venture between India's Hero Group and

Honda Motor Company, Japan that began in 1984.

In 2001, the company achieved the coveted position of being the

largest two-wheeler manufacturing company in India and the ‘World

No.1’ two-wheeler company in terms of unit volume sales in a

calendar year by a single company. Hero Honda has retained that

coveted position till date.

Today, every second motorcycle sold in the country is a Hero Honda

bike. Every 30 seconds, someone in India buys Hero Honda's top-

selling motorcycle – Splendor.

Vision

The Hero Honda story began with a simple vision – the vision of a

mobile and an empowered India, powered by Hero Honda. This vision

was driven by Hero Honda’s commitment to customer, quality and

excellence, and while doing so, maintaining the highest standards of

ethics and societal responsibilities. Hero Honda believes that the

fastest way to turn that dream into a reality is by remaining focused

on that vision.

Strategy

Hero Honda’s key strategy has been driven by innovation in every

sphere of activity – building a robust product portfolio across

categories, exploring new markets, aggressively expanding the

network and continuing to invest in brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally

benchmarked manufacturing facilities. Two of these are based at

Gurgaon and Dharuhera which are located in the state of Haryana in

northern India. The third and the latest manufacturing plant is based

at Haridwar, in the hill state of Uttrakhand.

Technology

In the 1980’s Hero Honda pioneered the introduction of fuel-efficient,

environment friendly four-stroke motorcycles in the country. Today,

Hero Honda continues to be technology pioneer. It became the first

company to launch the Fuel Injection (FI) technology in Indian

motorcycles, with the launch of the Glamour FI in June 2006.

Products

Hero Honda's product range includes variety of motorcycles that have

set the industry standards across all the market segments. The

company also started manufacturing scooter in 2006. Hero Honda

offers large no. of products and caters to wide variety of

requirements across all the segments.

BOARD OF DIRECTORS

No

.

Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time

Director

2 Mr. Pawan Munjal Managing Director &

C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive &

Independent Director

10 Gen. (Retd.) V. P. Malik Non-executive &

Independent Director

11 Mr. Analjit Singh Non-executive &

Independent Director

12 Dr. Pritam Singh Non-executive &

Independent Director

13 Ms. Shobhana Bhartia Non-executive &

Independent Director

14. Mr. M. Damodaran Non-executive &

Independent Director

15. Mr. Ravi Nath Non-executive &

Independent Director

16. Dr. Anand C. Burman Non-executive &

Independent Director

BRIEF PROFILE OF DIRECTORS

  MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and

Chairman of the Company and the $ 3.2 billion Hero

Group. He is the Past President of Confederation of

Indian Industry (CII), Society of Indian Automobile

Manufacturers (SIAM) and was a Member of the Board of

the Country's Central Bank (Reserve Bank of India). In

recognition of his contribution to industry, Mr. Munjal

was conferred the Padma Bhushan Award by the Union

Government.

Mr. Brijmohan Lall Munjal is currently on the board of the

following companies:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors

Limited

Chairman and Whole-time

Director

2 Hero Honda Finlease

Limited

Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries

Limited

Director

6 Shivam Autotech

Limited

Director

 MR. PAWAN MUNJAL

Mr. Pawan Munjal is the Managing Director and CEO of

the Company. He is responsible for growth and strategic

planning for the entire Group. A graduate in mechanical

engineering, Mr. Munjal has been instrumental in

bringing about technological and managerial excellence

in the Company's operations. He has been the Chairman

of several Committees of CII.

He is also on the board of Indian Institute of

Management, Lucknow . An avid golfer, Mr. Munjal is

Past Chairman of the Asian PGA Tour Board of Directors

and the Past President of Professional Golfers Association

of India (PGAI). Under his guidance, Hero Honda

launched the Hero Indian Sports Academy (HISA) in

collaboration with Laureus Foundation to provide equal

opportunities in sports to various communities and to

reward talent in the country.

Mr. Pawan Munjal is currently on the Board of the

following companies:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors Limited Managing Director &

CEO

2 Hero Honda Finlease

Limited

Director

3 Rockman Industries

Limited

Director

 MR. TOSHIAKI NAKAGAWA

Mr. Toshiaki Nakagawa joined the Company as Joint

Managing Director on February 1, 2006.

He joined Honda Motor Co., Ltd, Japan in April 1973 and

later on took various assignments at Senior Positions in

world wide Honda net work, such as staff member of UK,

Hongkong and President of Honda Czech Republic,

Honda France and General Manager of Honda Beijing

Office.

Before joining the Company, he held the position as

General Manager of Operating Office of China, ASEAN

succeeding by Operating Office No.1 (North America,

South America and Europe) at Honda Head Office, Japan.

His specialization is “Overseas Sales of Automobiles and

Motorcycles.”

Mr. Nakagawa is currently on the Board of the following

companies:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors Limited Joint Managing Director

2 Hero Honda Finlease

Limited

Director

 MR. SUMIHISA FUKUDA

Mr. Sumihisa Fukuda was appointed as an Additional and

Technical Director in the Whole-time employment of the

Company by way of passing a resolution by Circulation

on May 13, 2008 . Mr. Fukuda was born on December 12,

1955 at Nagasaki , Japan and after completing a course

in Mechanical Engineering, he joined Honda Motor Co.,

Ltd., Japan as an Engineer & has completed various

assignments in Honda. In recent past, he was working as

Manager - Asian Autoparts Co. Ltd., Thailand . He brings

with him rich experience of more than 30 years.

Mr. Fukuda is currently on the Board of the following

companies:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors Limited Technical Director

2 Hero Honda Finlease Limited Director

 MR. SUNIL KANT MUNJAL

Mr. Sunil Kant Munjal was appointed on the Board of

Directors of Hero Honda Motors Limited August 25, 2006

as an Non Executive Director of the Company. After his

graduation, he underwent training in the field of

Mechanical Engineering. Presently he is Managing

Director of Hero Cycles Ltd. (C.R. Division) and Hero

Corporate Services Limited.

Mr. Munjal has also been the President of Confederation

of Indian Industry (CII), India's premier business

association. He is also on the Board of Indian School of

Business, Hyderabad and is the visiting faculty at various

Business Schools and Corporate. His specialization is in

Business Studies and Holistic Management Practices.

Apart from the above he is a member of Prime Minister's

Council on Trade and Industry, Consultative Group on

Industry, Planning Commission, Government of India and

SEBI Committee on Disclosures. He has made significant

contributions to some of the National-level Economic and

Labour reforms in India in the capacity of Chairman or as

a member.

Mr. Sunil Kant Munjal is currently on the board of the

following companies:

N

o.

Name of Company Nature of Office

1 Hero Management Service

Limited

Chairman &

Managing Director

2 Hero Corporate Service

Limited

Chairman

3 Shivam Autotech Limited Chairman

4 Hero Life Insurance Company

Limited

Chairman

5 Abhayuday Manufacturing &

Automotive Ltd

Director

6 Arrow Infra Limited Director

7 DCM Shriram Consolidated

Limited

Director

8 Easy Bill Limited Director

9 Hero Honda Motors Limited Director

10 Hero Mindmine Institute Director

Limited

11 Hero Realty & Infra Limited Director

12 Hero Steels Limited Director

13 Rockman Industries Limited Director

14 Satyam Auto Components

Limited

Director

15 Weave Engineering and

Design Limited

Director

 MR. SUMAN KANT MUNJAL

Mr. Suman Kant Munjal was appointed as an Additional

Director on the Board of Hero Honda Motors Limited on

July 29, 2010. Mr. Munjal is the Managing Director of

Rockman Industries Ltd., one of the leading suppliers of

Aluminum Die Casting, Machined and Painted

Assemblies to Hero Honda Motors Ltd. Mr. Munjal, a

graduate in Commerce, possesses rich experience and

expertise in business management and thus has been

instrumental in elevating Rockman Industries Ltd. to its

current status.

Mr. Suman Kant Munjal is currently on the board of the

following companies:

N

o.

Name of Company Nature of

Office

1 Hero Management Service Limited Managing

Director

2 Hero Corporate Service Limited Director

3 Shivam Autotech Limited Directors

4 Hero Life Insurance Company

Limited

Director

5 Abhayuday Manufacturing &

Automotive Ltd

Director

 MR. TAKASHI NAGAI

Mr. Takashi Nagai is President & CEO, Honda Siel Cars

India Ltd. and Honda Motor India Private Ltd. He is also

the head of Honda’s overall operations in the entire

South West Asia region. He has been associated with

Honda Motor Co. for more than 27 years. He joined

Honda in 1982 and began his career in Production

Control at company’s Hamamatsu Plant in Japan.

Mr. Nagai has vast experience in the automobile

industry, having worked with Honda ventures in different

markets, across the globe including America and Europe.

From February 2003 to January 2006, Mr. Nagai was

stationed in Mexico as Director of Honda de Mexico, S.A.

de C.V. In February 2006, he was appointed as General

Manager, Overseas Operations Office No. 1 of Honda

Motor Co. Ltd. looking after North America, South

America and European market. In April 2007, Nagai

became Executive Vice President, Asian Honda Motor

Company Ltd. and a Director of Honda Motor Co. Ltd

from June of the same year.

Mr. Nagai is on the board of the following companies.:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors Limited President & CEO

2 Honda Siel Cars India Limited Director

3 Honda Siel Power Products

Limited

Director

 MR. YUJI SHIGA

Mr. Yuji Shiga was appointed on the Board of Directors of

Hero Honda Motors Limited on April 19, 2010 in Casual

Vacancy caused by the resignation of Mr. Masahiro

Takedagawa. Mr. Shiga began his career at Honda

Motors in Domestic Sales of Power Products in 1982. He

has distinguished his business expertise over 27 years in

the field of power products, and was appointed as

President of Jialing Honda Motor Co., Ltd (China) in June

2005..

He has extensive experience of Honda’s products and

global operations, having worked in many regions across

the globe. In April 2009, he was appointed as General

Manager of Overseas Operation Office No.1, overlooking

operations of North & South America, and Europe.

Combined with his current role of supervising Asia &

Oceania, he possesses a scope covering close to all of

Honda’s markets.

Mr. Shiga is on the board of the following companies:

N

o.

Name of Company Nature of Office

1 Hero Honda Motors Limited Director

  MR. PRADEEP DINODIA

Mr. Pradeep Dinodia was appointed as an Additional

Director on the Board of the Company on March 31,

2001. Mr. Dinodia is a fellow member of The Institute of

Chartered Accountants of India and a senior partner in

the Delhi-based Chartered Accountancy firm M/s. S.R.

Dinodia & Company. He has considerable experience in

corporate affairs and allied legal and taxation matters.

Mr. Dinodia is on the Board of the following companies:

No

.

Name of Company Nature of Office

1 DCM Shriram Consolidated

Limited

Director

2 DFM Foods Limited Director

3 Hero Corporate Services

Limited

Director

4 Hero Honda Motors Limited Director

5 Shriram Pistons & Rings

Limited

Director

6 JK Lakshmi Cement Limited Director

7 Micromatic Grinding

Technologies Limited

Director

8 SPR International Auto

Exports Limited

Director

9 Ultima Finvest Limited Director

  GEN. (RETD.) V. P. Malik

Gen. (Retd.) V. P. Malik was appointed as an Additional

Director on the Board of the Company on May 4, 2001.

Gen. Malik retired as Chief of the Indian Army in

September, 2000. During his distinguished military

career, he received number of awards including the Ati

Vishista Seva Medal (AVSM) and the Param Vishishta

Seva Medal (PVSM) - the highest National award for

distinguished services.

Gen. Malik is on the Board of the following companies:

N

o.

Name of Company Nature of Office

1 BSES Rajdhani Power Limited Director

2 BSES Yamuna Power Limited Director

3 Hero Honda Motors Limited Director

4 Reliance Infrastructure Limited Director

  MR. ANALJIT SINGH

Mr. Analjit Singh, the Chairman of Max India Group, was

appointed as an Additional Director on the Board of the

Company on September 28, 2004. Mr. Singh brings has

rich and varied experience in businesses like

Pharmaceuticals, telecom services, packaging, specialty

plastic products and electronic components.

Mr. Singh is currently on the board of the following

companies:

N

o.

Name of Company Nature of Office

1 Max India Limited Chairman and Mg.

Director

2 Max New York Life Insurance

Company Limited

Chairman

3 Max Healthcare Institute Limited Chairman

4 Max Neeman Medical

International Limited

Chairman

5 Max Bupa Health Insurance

Company Limited

Chairman

6 Indus Towers Limited Chairman

7 Malsi Holdings Limited Chairman

8 Malsi Estates Limited Chairman

9 Dabur India Limited Director

10 Hero Honda Motors Limited Director

11 IDBI Bank Limited Director

12 Malsi Hotels Limited Director

13 Tata Beverages Limited Director

14 Vodafone Essar Limited Director

  DR. PRITAM SINGH

Dr. Pritam Singh was appointed as an Additional Director

on the Board of the Company on September 28, 2004 .

He is author of seven academically reputed books and

over 50 research papers. Dr. Pritam Singh is one of the

pioneers of Management Education in India who has

devoted his life to the development of Management

Education in India and abroad. Dr. Singh received the

"Padam Shri" award in 2003 for his contributions in this

field.

He is also on the Board of the following companies and

their committees:

N

o.

Name of Company Nature of Office

1 Dish TV India Limited Director

2 Hero Honda Motors Limited Director

3 Dena Bank Limited Director

4 Godrej Properties Limited Director

5 Parsvnath Developers Limited Director

  MS. SHOBHANA BHARTIA

Mrs. Shobhana Bhartia was appointed as an Additional

Director on the Board of the Company on March 24,

2005. She belongs to the distinguished Birla family and

has married into another major industrial family, the

Bhartia Group. Currently, she is the Vice Chairperson and

Editorial Director of HT Media Limited. She has been

conferred the "Padam Shri" by the Union Government for

her contribution to the media. Mrs. Bhartia is also the

Chairperson of International Press Institute (India

Chapter). .

Mrs. Bhartia is director on the Board of the following

companies:

N

o.

Name of Company Nature of Office

1 HT Media Limited Chairperson &

Editorial Director

2 The Hindustan Times Limited Chairperson

3 Air Travel Bureau Limited Director

4 Britex (India) Limited Director

5 Firefly e-ventures Limited Director

6 Goldmerry Investment &

Trading Co. Limited

Director

7 Hero Honda Motors Limited Director

8 Hindustan Media Ventures

Limited

Director

9 HTL Investment & Trading Co.

Limited

Director

10 Nilgiri Plantation Limited Director

11 Ronson Traders Limited Director

12 Shradhanjali Investment &

Trading Co. Limited

Director

13 Udit (India) Limited Director

14 Usha Flowell Limited Director

15 Yashovardhan Investment &

Trading Co. Limited

Director

  MR. M. DAMODARAN

Mr. M. Damodaran has been appointed as an Additional

Director w.e.f. June 16, 2008 in the category of Non-

Executive and Independent Director. Mr. Damodaran,

aged 61 years was born on May 4, 1947 and belongs to

the Indian Administrative Service, Manipur-Tripura

Cadre. He had held various coveted positions in

Government / Public Sector and Regulatory Bodies.

In the past he held the position of Joint Secretary

(Banking Division) in the Ministry of Finance, Chairman

Unit Trust of India. He headed the IDBI bank before being

appointed as the Chairman of the Securities and

Exchange Board of India (SEBI), the country's financial

market watchdog. He was also appointed as officer on

special duty with the Reserve Bank of India dealing

primarily with the restructuring of three identified weak

public sector banks.

Mr. Damodaran is currently on the board of the following

companies:

N

o.

Name of Company Nature of

Office

1 Hero Honda Motors Limited Director

2 Tech Mahindra Limited Director

3 Cochin Shipyard Limited Director

4 Dedicated Freight Corridor Director

Corporation of India Limited

5 ING Vysya Bank Limited Director

6 Satyam Computer Services Limited Director

7 Sobha Developers Limited Director

  MR. RAVI NATH

Mr. Ravi Nath has been appointed as an Additional

Director w.e.f. October 14, 2009 in the category of Non-

Executive and Independent Director. Mr. Nath, aged 64

years is an Advocate of Supreme Court of India. He is a

Partner of one of the India's oldest legal firms Rajinder

Narain & Co. He has done his B.Com (Honours), LLB,

International and Competitive Laws from King's College,

London, and PIL from Harvard. He did his apprentice

from Sinclair Roche and Temperley, London. He brings

with him rich and specialized experience in the field of

Corporate and Commercial law, Asset Finance, Aviation

and Cross Border issues of nearly 40 illustrious years. He

has also been recognized several times by Euromoney

and others as a leading lawyer in the field of Mergers &

Acquisitions. He is listed in Who's Who and Legal 500.

The Bar Association of India conferred its highest honour

on him.

He is also on the Board of the following companies:

No

.

Name of Company Nature of Office

1 Voith Paper Fabrics India Ltd. Director

2 Hero Honda Motors Limited Director

3 Kanoria Chemicals &

Industries Ltd.

Director

4Somany Ceramics Ltd.

Director

  Dr. ANAND C.BURMAN

Mr. Anand C. Burman has been appointed as an

Additional Director w.e.f. January 13, 2010 in the

category of Non-Executive and Independent Director. Dr.

Burman is an eminent Industrialist with particular

interests in the areas of Research and Development in

the Pharmaceutical Sciences as well as Biotechnology

and Technology issues. Dr. Burman has Doctorate in the

area of Pharmaceutical Chemistry from the University of

Kansas, USA. He is currently the Chairman of Dabur India

Limited. He is also a member in the Council of Governors

at Birkbeck College, University of London.

He is also on the Board of the following companies:

No

.

Name of Company Nature of Office

1 Dabur India Limited Chairman & Director

2 Fresenius Kabi Oncology

Limited

Director

3 Althea Lifesciences Limited Director

4 Aviva Life Insurance Co. India

Limited

Director

5 Dabur Overseas Limited Director

6 Dabur Pharmaceuticals

Limited

Director

7 H&B Stores Limited Director

8 Hero Honda Motors Limited Director

9 Hindustan Motors Limited Director

KEY MILESTONES OF HERO HONDA

Yea

r

Event

198

3

Joint Collaboration Agreement with Honda Motor

Co. Ltd. Japan signed

Shareholders Agreement signed

198

4

Hero Honda Motors Ltd. incorporated

198

5

First motorcycle "CD 100" rolled out

198 100,000th motorcycle produced

7

198

9

New motorcycle model - "Sleek" introduced

199

1

New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

199

2

Raman Munjal Vidya Mandir inaugurated - A

School in the memory of founder Managing

Director, Mr. Raman Kant Munjal

199

4

New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

199

7

New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at

Gurgaon inaugurated

199

8

2,000,000th motorcycle produced

199

9

New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera

Plant certified with ISO-14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A

Hospital in the memory of founder Managing

Director, Mr. Raman Kant Munjal

200

0

4,000,000th motorcycle produced

Environment Management System of Gurgaon

Plant certified ISO-14001 by DNV Holland

Splendor declared 'World No. 1' - largest selling

single two-wheeler model

"Hero Honda Passport Programme" - CRM

Programme launched

200

1

New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

200

2

New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif,

Yuvraj Singh, Harbhajan Singh and Zaheer Khan

as Brand Ambassadors

200

3

Becomes the first Indian Company to cross the

cumulative 7 million sales mark

Splendor has emerged as the World's largest

selling model for the third calendar year in a row

(2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

200

4

New motorcycle model - "Ambition 135"

introduced

Hero Honda became the World No. 1 Company for

the third consecutive year.

Crossed sales of over 2 million units in a single

year, a global record.

Splendor - World's largest selling motorcycle

crossed the 5 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million

motorcycles

200

5

Hero Honda is the World No. 1 for the 4th year in

a row

New motorcycle model - "Super Splendor"

introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure"

introduced

200

6

Hero Honda is the World No. 1 for the 5th year in

a row

15 million production milestone achieved

200 Hero Honda is the World No. 1 for the 6th year in

7 a row

New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched

20 million production milestone achieved

200

8

Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched

25 million production milestone achieved

CD Deluxe lauched with power start feature

New 'Glamour' launched

New 'Glamour Fi' launched

200

9

Hero Honda GoodLife Program launched

Hunk' (Limited Edition) launched

Splendor completed 11 million production

landmark

New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

FROM THE CHAIRMAN'S DESK

LEADING WITH A DREAM

We had a dream. The dream of making motorcycles that

would touch and transform the lives of our customers by

giving them a mode of transport that was fuel-efficient,

comfortable and environment friendly. One that would

enhance their efficiency at work, enable them to share

moments of joy with their families and add up to a better

quality of life.

In a scenario where the customer had a few choices, our

vision was to offer the highest quality at a reasonable

price, to meet our customer’s expectations, and to

exceed them.

Behind the success of Hero Honda, is the saga of team-

work. We would like to acknowledge the role played by

our JV partners, Honda Motor Company, Japan, and all

our business associates, shareholders and employees.

In the new millennium, we stand committed to

innovation, to change, to achieving breakthroughs… to

moving forward in the new century, while retaining the

values that have been like a beacon in this journey thus

far.

Brijmohan Lall

Chairman

CORPORATE SOCIAL RESPONSIBILITY (CSR)

  STAKEHOLDER TIES AT THE GRASSROOTS

 Hero Honda Motors takes considerable pride in its

stakeholder relationships, especially ones developed at the

grassroots. The Company believes it has managed to bring

an economically and socially backward region in

Dharuhera, Haryana, into the national economic

mainstream.

An Integrated Rural Development Centre has been set up

on 40 acres of land along the Delhi-Jaipur Highway. The

Centre-complete with wide approach roads, clean water,

and education facilities for both adults and children-now

nurtures a vibrant, educated and healthy community.

The Foundation has adopted various villages located within

vicinity of the Hero Honda factory at Dharuhera for

integrated rural development. This includes:

Installation of deep bore hand pumps to provide

clean drinking water.

Constructing metalled roads and connecting these

villages to the National Highway (NH -8).

Renovating primary school buildings and providing

hygienic water and toilet facilities.

Ensuring a proper drainage system at each of these

villages to prevent water-logging.

Promoting non-conventional sources of energy by

providing a 50 per cent subsidy on biogas plants.

Other key projects taken up by the Foundation include:

 Raman Munjal Vidya Mandir

The Raman Munjal Vidya Mandir began with three

classes (up to class II) and 55 students from nearby areas.

It has now grown into a modern Senior Secondary, CBSE

affiliated co-educational school with over 1200 students

and 61 teachers. The school has a spacious playground, an

ultra-modern laboratory, a well-equipped audio visual

room, an activity room, a well-stocked library and a

computer centre.

  Raman Munjal Memorial Hospital

Multi-specialty hospital equipped with the latest

diagnostic and surgical technology. The Raman Munjal

Memorial Hospital provides healthcare to the rural

population in and around Dharuhera, and also caters to

accident and trauma victims driving along the Delhi-

Jaipur highway.

 Raman Munjal Sports Complex

The Raman Munjal Sports Complex has basketball

courts, volleyball courts, and hockey and football grounds

are used by the local villagers. In the near future, sports

academies are planned for volley ball and basket ball, in

collaboration with National Sports Authority of India.

 Vocational Training Centre

In order to help local rural people, especially women, Hero

Honda has set up a Vocational Training Centre. So far 26

batches comprising of nearly 625 women have been

trained in tailoring, embroidery and knitting. The Company

has helped women trained at this centre to set up a

production unit to stitch uniforms for Hero Honda

employees. Interestingly, most of the women are now self-

employed.

 Adult Literacy Mission

This Scheme was launched on 21st September, 1999,

covering the nearby villages of Malpura, Kapriwas and

Sidhrawali. The project started with a modest enrolment of

36 adults. Hero Honda is now in the process of imparting

Adult Literacy Capsules to another 100 adults by getting

village heads and other prominent villagers to motivate

illiterate adults.

 Marriages of underprivileged girls

Marriages are organized from time to time, particularly for

girls from backward classes, by the Foundation by

providing financial help and other support to the families.

 Rural Health Care

Besides setting up a modern hospital, the Foundation

also regularly provides doorstep health care services to

the local community. Free health care and medical

camps are now a regular feature in the Hero Group's

community outreach program.

KEY POLICIES

  AN ENVIRONMENTALLY AND SOCIALLY, AWARE

COMPANY

 At Hero Honda, our goal is not only to sell you a bike, but

also to help you every step of the way in making your

world a better place to live in. Besides its will to provide a

high-quality service to all of its customers, Hero Honda

takes a stand as a socially responsible enterprise

respectful of its environment and respectful of the

important issues.

Hero Honda has been strongly committed not only to

environmental conservation programmes but also

expresses the increasingly inseparable balance between

the economic concerns and the environmental and social

issues faced by a business. A business must not grow at

the expense of mankind and man's future but rather must

serve mankind.

"We must do something for the community from

whose land we generate our wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan

Lall Munjal.

 Environment Policy

 We at Hero Honda are committed to demonstrate

excellence in our environmental performance on a

continual basis, as an intrinsic element of our corporate

philosophy.

To achieve this we commit ourselves to:

   HERO HONDA MOTORS LIMITED   34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057, India.

   Tel:  +91-11-26142451, 26144121    Fax: +91-11-26143321, 26143198

PLANTS

   HARIDWAR

   Plot No.3, Sector-10, Ranipur IIE-SIDCUL, Haridwar - 248001

   Tel: +91-01334-238500    Fax: +91-01334-239512

   DHARUHERA

   69 Km. Stone, Delhi-Jaipur Highway,   Dharuhera -122 100, Dist. Rewari (Haryana), India.

   Tel: +91-01274-264000    Fax: +91-01274-264325

   GURGAON

   37 Km. Stone, Delhi-Jaipur Highway,   Sector-33, Gurgaon -122 001(Haryana), India.

   Tel: +91-124-2372123-34    Fax: +91-124-2373141-

42

NORTH ZONE

   ZONAL OFFICE

  Hero Honda Motors Ltd.  F-126, Katwaria Sarai, Opp. Qutab Institutional Area,

  New Delhi -110016, India.

  Tel: +91-11-26533981-2, 47619300      Fax: +91-11-26533983  

  REGIONAL OFFICES

  Hero Honda Motors Ltd.  M/s.Hero Honda Motors Ltd .  S.C.O 367 - 368 , First Floor ,  Sector-34A , Chandigarh .  Pin Code -  160022

  Tel: +91-172- 2623773 , 2623774 , 2623775   Fax: +91-172-2770780

  Email: [email protected]

  Hero Honda Motors Ltd.  Hotel Mandakini Compound, 01, Haridwar Road,  Dehradun - 248 001, India.

  Tel: +91-135-2724661-62     Fax: +91-135-2724663

  Email: [email protected]

  Hero Honda Motors Ltd.  210, Ganpati Plaza, M.I. Road,   Jaipur - 302 001, India.

  Tel: +91-141-2372476, 2361731     Fax: +91-141-2361252  

  Hero Honda Motors Ltd.  Kisan Mandi Bhawan (Basement), Vibhuti Khand, Gomti Nagar,  Lucknow - 226 010, India.

  Tel: +91-522-2721219, 2721220, 2721221     Fax: +91-522-2721223  

  Hero Honda Motors Ltd.  First Floor, S-20/51-G-B, Nepali Kothi , Varuna Bridge,   Nadesar, Varanasi-   221002 Uttar Pradesh

SOUTH ZONE

  ZONAL OFFICE

  Hero Honda Motors Ltd.  No - 294, 2nd Floor,  6th Main, Off 100 ft Road,   HAL 2nd Stage,   Indira Nagar   Bangalore - 560038

  Tel: +91-80-25550430, 25584436, 25582436, 25321139  Fax: +91-80-25594036  

  REGIONAL OFFICES

  Hero Honda Motors Ltd.  18/1(Old No. 30/1) PLN Complex,   Third Floor, Coronosmith Road, Gopalapuram,    Chennai - 600086

  Tel: +91-44-28350974, 28350975, 28350976  Fax: +91-44-28350977

  Hero Honda Motors Ltd.  3-E2, Third Floor, Saniya Plaza, Mahakavi Bharathiyar Road,  Near K.S.R.T.C. Bus Stand, Cochin - 682 035, India.

  Tel: +91-484-2374912, 2374503    Fax: +91-484-2350705  

  Hero Honda Motors Ltd.  723 A&B Thirumalai Tower, Door No. IV "C", Avanashi Road,  Coimbatore - 641 018, India.

  Tel: +91-422- 2211944, 2218551  Fax: +91-422-2211944  

  Hero Honda Motors Ltd.  No.3, First Floor, Enkay Complex,  Keshwapur, Hubli - 580 023, India.

  Tel: +91-836-2269717    Fax: +91-836-2361038  

  Hero Honda Motors Ltd.  3-6-475/3/B1, First Floor, Kalpavruksha Estates, Himayatnagar,  Hyderabad - 500 029, India.

  Tel: +91-40-27604140, 27604186    Fax: +91-40-55824340  

  Hero Honda Motors Ltd.  No. 306 & 307, Godavari Motors Complex, Opp. PWD Grounds, M.G. Road,  Vijayawada - 520 002, India.

  Tel: +91-866-2576859    Fax: +91-866-2576860

EAST ZONE

  ZONAL OFFICE

  Hero Honda Motors Ltd.  3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor,

  Kolkatta - 700 017, India.

  Tel: +91-33-22810926 22810927, 22808922, 22811185  Fax: +91-33-22808923  

  REGIONAL OFFICES

  Hero Honda Motors Ltd.  Janpath Tower, Forth Floor, Room No. 404, 971/1415, Ashok Nagar,  Bhubaneswar - 751 009, India.

  Tel: +91-674-2530011, 2531980    Fax: +91-674-2530011

  Hero Honda Motors Ltd.  208, Commerce Tower, Opp. G.E.L. Church Complex,  Main Road, Ranchi - 834 001, India.

  Tel: +91-651-2330089, 2331399    Fax: +91-651-2330594

  Hero Honda Motors Ltd.  201-Dukhan Ram Plaza, Opp.Ashina Towers,Exhibition Road,   Patna-800 001, India.

  Tel: +91-0612-2500393 , 2500397  

WEST ZONE

  ZONAL OFFICE

  Hero Honda Motors Ltd.  15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road, Wakadewali,  Pune - 411 003, India.

  Tel: +91-20-25511577, 25512161, 56012990-91    Fax: +91-20-25511266  

  REGIONAL OFFICES

  Hero Honda Motors Ltd.  604, Gunjan Towers, Off Alembic-Gorwa Road,  Baroda - 390 023, India.

  Tel: +91-265-2286569/2286570    Fax: +91-265-2286568  

  Hero Honda Motors Ltd.  Third Floor, Alankar Palace, Plot No. 11, Zone II, M.P. Nagar,  Bhopal - 462 011, India.

  Tel: +91-755-4203160, 2553697, 4272429    Fax: +91-755-4272428  

  Hero Honda Motors Ltd.  Classic Stripes House, Third Floor, 76/79, Makwana Lane,  Off. Andheri Kurla Road, Andheri (East), Mumbai - 400 059, India.

  Tel: +91-22-28562071    Fax: +91-22-28598025

  Hero Honda Motors Ltd.  1st Floor, Block No.2, Vishnu Vaibhav Complex, 222, Palam Road, Civil Lines  Nagpur - 440 001, India.

  Tel: +91-712-2545990-91, 3093808    Fax: +91-712-2545991

  Hero Honda Motors Ltd.  Office No. 8, 1st Floor, Ashoka Millenium, Ring Road No. 1,  Raipur (C.G.) - 492 001, India.

  Tel: +91-771-4034749/50  

  Hero Honda Motors Ltd.  626, Sixth Floor, Star Plaza, Near Phoolchhab Chowk,  Rajkot - 360 001, India.

  Tel: +91-281-2478233    Fax: +91-281-2448329

SERVICE & MAINTENANCE SCHEDULE 

Our constant endeavour is to support the company's mandate of

providing highest level of customer satisfaction by taking good care of

your two-wheeler service and maintenance through our vast network

of more than 2100 committed Dealers and Service outlets spread

across the country.

Our state-of-the-art authorised workshops have well laid out standards

for two-wheeler servicing with fully equipped infrastructure having

quality precision instruments, pneumatic tools and a team of highly

trained service technicians. Having your two-wheeler serviced at an

authorised workshop ensures highest standards of service quality and

reliability.

Service Schedule

Hero Honda offers free services on all its two-wheelers. You should

avail these services within the stipulated conditions of time period or

km range, whichever condition gets satisfied earlier from the date of

purchase. After the completion of free services or its validity period

you must continue availing paid services as per the recommended

service schedule.

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Click on the thumbnail to see an enlarged view.

  New Launches:

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CBZ X-Treme Achiever Next Generation

of Motorcycling

Pleasure Splendor NXG Hunk

  Campaigns:

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A Lot less Stops One Litre Road It's the Honda

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Chartered Accountant Over-Time Best Seller

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World's No.1! Friends For Life Nawab of Najafgarh

Designed to Excel Awaaz Consumer Awards '06

SALES PERFORMANCE

  FY 04-05 FY 05-06 FY 06-

07

FY 07-

08

FY 08-

09

Total Sales 26,21,40030,00,75

1

33,36,75

6

33,37,14

2

37,22,00

0

Exports (incl

in above) 64,015 92,666 97,341 90,571 81,193

Hero Honda Registers 23% Growth in June'06

Hero Honda Sells Over 2.50 Lakh Units in February 2006

Hero Honda Begins 2006 On A High Note

Hero Honda Motors Scales A New High In Cy ’05

Hero Honda Continues On The Growth Path

Retail Sales Escalate To An Unprecedented 4 Lakh + Units

In October’05

Hero Honda Registers 22.3 Per Cent Growth In September

’05

Hero Honda’s Sales Jump 28.5 Per Cent In August 2005

Hero Honda Registers 12 Per Cent Growth In Sales In July

2005

Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-

06

Hero Honda Motorcycle Sales In May At 2,26,072

Hero Honda Starts The Financial Year With Over 20%

Growth

HERO HONDA REGISTERS 23% GROWTH IN JUNE '06

Records a growth of 21% Sales in Q1 Of 2006-07

New Delhi, July 01, 2006: Hero Honda, the 'World No.1' two-

wheeler company, continues to strengthen its leadership in the Indian

two-wheeler industry, registering impressive growth in sales in the

first quarter of the FY 2006 - 07.

For the quarter ending June 2006, the company achieved cumulative

sales of 8,32,692 units, recording a growth of 21.29% compared to

the same period last year. During the corresponding period last

Financial Year, the company had recorded sales of 6,86,494 units in

the first quarter ending June 2005.

In June 2006, the company sold 2,78,660 units registering an

impressive growth of 23.26% as against 2,26,073 units in June last

year.

During the month, Hero Honda launched Glamour FI - India's first Fuel

Injection motorcycle. The new technology eliminates the need for a

carburetor, offers the most comfortable drive and the lowest

emissions, in addition to a host of other features, which is now

available for the first time to Indian two-wheeler riders.

Hero Honda Sells Over 2.50 Lakh Units In February 2006

CUMULATIVE SALES JUMP 14.16 %

New Delhi, March 1, 2006: Hero Honda, the ‘World No. 1’ two-

wheeler company for the fifth year in a row, has continued to exhibit

a leader’s performance in the first couple of months in 2006.

During the month of February 2006, the company sold 2,50,695 units,

as compared to 2,23,546 motorcycles sold during February 2005. This

translates into a growth of 12.14 per cent in sales volume.

The cumulative sales of the company for the period April 2005 -

February 2006 also witnessed a notable jump of 3,38,632 units, from

23,89,807 to 27,28,439 units during the corresponding period last

year. This reflects a growth of 14.16 percent.

In January 2006, Hero Honda rolled out its first 100cc gearless scooter

the “Pleasure” across India. The company also launched 22 first ever

women-exclusive scooter showrooms “Just4her” across the country.

“Just4her” is a unique concept pioneered by Hero Honda Motors

targeting the women customers.

In January 2006, Hero Honda was also conferred the honor of the

“Bike Maker of the Year” by NDTV Profit-Bike and Car for the year

2005. Additionally its 150 cc offering Achiever received the coveted

‘Bike of the Year’ award. Achiever and Glamour also received the best

bike awards for their respective categories. The most desirable

amongst these awards, the ‘NDTV Viewers’ Choice’ award in the bike

category was also awarded to Hero Honda Glamour, truly

exemplifying the customers’ enduring trust and faith in the company.

Hero Honda Begins 2006 On A High Note

CUMULATIVE SALES JUMP 14 %

New Delhi, February 1, 2006: Hero Honda, the ‘World No 1’ two-

wheeler company for the fifth consecutive year, has continued to

exhibit a leader’s performance in the first month of the New Year.

During the month of January 2006, the company sold 2,49,450

motorcycles, as compared with 2,30,280 motorcycles sold during

January 2005. This translates into an increase of 8.3 % in sales

volume.

The cumulative sales of the company for the period April 2005 -

January 2006 has also increased to 24,77,744 motorcycles, a notable

jump from 21,66,261 motorcycles during the corresponding period

last year. This reflects a growth of 14.3 %.

In the month of January, Hero Honda rolled out its first scooter, the

100cc “Pleasure” and launched 22 women-exclusive scooter

showrooms “Just4her” across the country. The cities where “Just4her”

showrooms were launched include Lucknow, Delhi, Ahmedabad, Pune

(two showrooms), Bangalore, Hyderabad, Baroda, Madgaon, Chennai

(two showrooms), Chandigarh, Ludhiana, Jaipur, Nagpur, Jamshedpur,

Bhubaneswar, Guwahati, Coimbatore, Cochin, Indore and Raipur.

The month of January also saw Hero Honda being conferred the

honour of the “Bike Maker of the Year” by NDTV Profit-Bike and Car

for the year 2005. Additionally its 150 cc offering Achiever received

the coveted ‘Bike of the Year’ award. Achiever and Glamour also

received the best bike awards for their respective categories. The

most desirable amongst these awards, the ‘NDTV Viewers Choice’

award in the bike category was also awarded to Hero Honda Glamour,

truly exemplifying the customers’ enduring trust and faith in the

company.

Hero Honda Motors Scales A New High In Cy ’05

CLOSES THE YEAR WITH SALES OF OVER 29 LAC BIKES

New Delhi, January 2, 2006: Hero Honda, the ‘World No. 1’ two-

wheeler company, set precedence in the industry by registering an

unparalleled growth throughout the calendar year (CY) 2005. In the

year that logged an impressive growth in the two-wheeler sector,

Hero Honda continued to exceed expectations by selling a staggering

29,16,523 motorcycles during the calendar year 2005. This converts

to a growth of 15.3 per cent over CY ’04 where the company sold

25,28,699 bikes.

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd.,

thanked customers for the company’s continuous brilliant

performance. He said “This year has been exciting for us where we

crossed significant milestones. We fulfilled our commitment to the

customers by providing the latest and global standard products. We

launched several new products this calendar year. It is to the

complete credit of our customers who have shown continued faith in

us and our products that we have achieved the World No. 1 two-

wheeler company year after year."

During CY ’05, the company continued its consistent growth in sales

performance. In December 2005, the company sold a total of

2,45,104 motorcycles as compared with 2,30,751 bikes during the

same month last year which means an increase of 6.2 per cent. With

this, the cumulative tally for the period April-December 2005 stands

at 22,31,104 bikes, clocking a growth of 15.2 percent over the year

2004. The company sold 19,35,981 motorcycles during the same

period last year.

The calendar year 2005 also saw a slew of new launches in various

segments by the company. One of the biggest milestones was the

launch of ‘Pleasure’- the first scooter by Hero Honda. ‘Pleasure’ which

is slated to hit the roads in January is targeted primarily at women.

Having established its leadership in the industry, Hero Honda further

consolidated its position by launching three new motorcycles - ‘Super

Splendour’, ‘Glamour’ and ‘Achiever’.

The year also witnessed one of the highest civilian honours,

the Padma Bibhushan being awarded to Mr. Brijmohan Lall,

Chairman, Hero Honda Motors, for his invaluable contribution

to trade, industry and philanthropist activities. Mr. Brijmohan

Lall is a first generation entrepreneur who through sheer

hard work and perseverance has made his mark on the global

business environment. During the year Mr. Brijmohan Lall

was also honoured with a Lifetime Achievement Award by the

Economic Times.

Hero Honda Continues On The Growth Path

CUMULATIVE SALES FOR THE PERIOD APR-NOV ’05 GROWS BY

OVER 14 PER CENT

New Delhi, December 1st, 2005: Hero Honda, the ‘World No. 1’

two-wheeler company, is continuing to ride high on its steady sales

performance month after month.

During November 2005, the company recorded a sales volume of

2,51,186 motorcycles as compared with 2,35,836 motorcycles sold

during the same month last year. This translates into an increase of

6.5 per cent.

The cumulative sales of the company for the period April-November

2005 has also jumped by 14.7 per cent, increasing from 17,05,230

motorcycles sold during April– November 2004 to 19,56,416

motorcycles sold during the same period in 2005.

The month of November also witnessed the 5th Hero Honda Indian

Television Academy Awards, the first and only television awards in

the country.

Retail Sales Escalate To An Unprecedented 4 Lakh + Units In

October ’05

DESPATCH CROSSES THE 3-LAKH LANDMARK

New Delhi, October 31, 2005: Hero Honda, the ‘World No.1’ two

wheeler manufacturer, has set yet another precedent for the Indian

two-wheeler industry by recording incredible sales in October 2005.

The company’s retail sales crossed the 4-lakh milestone, for the first

time ever in the Indian two-wheeler industry.

Additionally, dispatch during the month also reached an

unprecedented high of 3,02,000 units, marking a remarkable jump of

23.02% as compared with the corresponding month in 2004. The

company had recorded dispatch of 2,45,475 units in October 2004.

Hero Honda’s achievement of the landmark 4 lakh plus retail sales

and 3 lakh plus dispatch, within a single month, is an extraordinary

feat considering the growing competition in the two-wheeler market

and is certain to redefine industry standards.

The company’s sales performance during October 2005 is a

testimony to the success of its customer centric business philosophy.

Month over month, the company has been recording increasing sales,

also signifying the success of its new models launched in the current

year.

The company’s sales (dispatch) during the month is up by 13.5%, as

compared with the previous month (September 2005), when the

company had recorded sales of 2,66,071 units.

With the first festive month ending, Hero Honda’s cumulative sales

(dispatch) for the period April-October 2005 has also registered a

significant growth of 17.87% over the corresponding period in the

previous year. The company’s cumulative sales tally has thereby

increased to 17,31,992 units, a jump from 14,69,394 units in 2004.

With the recent launch of Achiever in end-October and the

forthcoming launch of Pleasure in mid-November, the company is

confident of continuing its upward movement on the sales chart.

The company’s festive promotion, which offers Rs.1001/- off on each

of its models, has also met with huge success, across the country.

Hero Honda Registers 22.3 Per Cent Growth In September ’05

CLOSES HALF YEAR WITH IMPRESSIVE NUMBERS

New Delhi, 1st October 2005: Hero Honda, the ‘World No.1’ two-

wheeler company, for the fourth consecutive year, continued its

upswing during the month of September 2005.

The September sales of Hero Honda mark an impressive growth of

22.3 per cent over last year. The company sold 2,66,071 bikes in

September 2005 as against 2,17,507 bikes in the corresponding

month during the previous year. Sales during the month have also

jumped by 9.6 per cent over the previous month (August 2005), when

the company sold 2,46,304 motorcycles.

The cumulative sales of the company for the period April - September

2005 have also shown a growth of 16.84 per cent over the

corresponding period last year. The cumulative sales during the

period have increased to 14,29,992 motorcycles from 12,23,919

motorcycles during April-September 2004.

Hero Honda's Sales Jump 28.5 Per Cent In August 2005

PHASED LAUNCH OF 'GLAMOUR' COMPLETED; OVER 45,000

UNITS SOLD ALREADY

New Delhi, September 01, 2005: Hero Honda Motors Ltd., the

‘World No.1’ two-wheeler company for the fourth consecutive year, is

continuing with its robust performance month after month. The

company’s emphasis on proactive understanding and satisfaction of

customer needs and desires along with new product offerings has

resulted in the company consolidating its leadership in the industry.

The company sold a total of 2,46,304 motorcycles during August

2005, thereby registering an impressive growth of 28.5 per cent in

sales over the corresponding month last year. The company had sold

a total of 1,91,635 motorcycles in August 2004.

At the end of August 2005, the cumulative sales of the company for

the period April - August 2005 stood at 11,63,921 motorcycles,

translating into a growth of 15.6 per cent. The company had sold

10,06,412 motorcycles during the corresponding period (April-August

2004) last year.

Also during the month, Hero Honda completed the phased launch of

‘Glamour’- its new offering in the 125 cc segment. The bike comes

powered with the futuristic and exemplary Quantum Core engine,

which has been perfected after a series of refinements and offers

customers an unprecedented combination of top-class fuel-efficiency

and high power. The company has already sold over 45,000 units of

Glamour since its first launch in South India towards the end of June,

demonstrating a tremendous response from customers.

Hero Honda Registers 12 Per Cent Growth In Sales In July

2005

CUMULATIVE SALES CROSS NINE LAKH BIKES IN FOUR

MONTHS

New Delhi, August 01, 2005: Hero Honda Motors Ltd., the ‘World

No.1’ two-wheeler company has come to epitomize consistent

performance. The company has, month on month, managed to stand

up against all odds and maintained its leadership in the increasingly

competitive 2-wheeler segment.

During the month of July 2005, the company sold 2,30,050 bikes, as

against 2,05,654 bikes in the corresponding period last year, thus

registering a sales growth of 12 per cent.

For the period April - July 2005, the cumulative sale of the company

stood at 9,17,617 units, translating into a growth of 12.6% per cent.

The company had sold 8,14,777 units during the corresponding

period last year.

The company was able to achieve this impressive growth in the face

of continuing supply constraints of components caused by the volatile

labour situation prevailing in parts of the state of Haryana, where

both the manufacturing plants of the company are located. The

adverse situation impacted other industries in the region as well.

Thanks to the initiative taken by the Haryana government, the

situation has improved and production is expected to be back on

track.

Market demand for Hero Honda products remains buoyant and the

company launched ‘Glamour’- a new entry by the company in the

premium deluxe segment, in Western India during this month. The

bike was very successfully launched in South India in the previous

month and has been very well received by the customers in that

region. With this new product in its portfolio, the company is now

looking at consolidating its indisputable leadership in the market.

Hero Honda Registers 13% Growth In Sales In Q1 Of 2005-06

New Delhi, July 01, 2005: Hero Honda, the ‘World No.1’ two-

wheeler company, continues to strengthen its leadership in the Indian

two-wheeler industry, registering impressive growth in sales in the

first quarter of 2005 – 06.

For the quarter ending June 2005, the company achieved cumulative

sales of 6,86,494 units, recording a growth of 13 per cent. During the

corresponding period last Financial Year, the company had recorded

sales of 6,09,123 units.

In June 2005, the company sold 2,26,073 bikes registering a growth

of 12.5% as against 2,00,922 units in June last year.

This impressive growth was achieved in the face of continuing supply

constraints of components caused by the volatile situation prevailing

in parts of the state of Haryana, where both the manufacturing plants

of the company are located. The adverse situation has impacted

other industries in the region as well.

However, market demand for Hero Honda products remains buoyant

and production is expected to be back on track to meet this demand.

With the steady progress of monsoon, the outcome also remains

positive.

Hero Honda Motorcycle Sales In May At 2,26,072

New Delhi, June 1, 2005: Hero Honda, the ‘World No. 1’ two-

wheeler company, sold 2,26,072 units in May 2005.

The impressive figure was achieved despite some supply constraints.

With the huge demand for Hero Honda bikes in the market and

supplies now back to normal, sales are set to get a boost in June.

During the month of May, Hero Honda also announced auditions for

Hero Honda MTV Roadies- 3, a reality show that the company has

been associated with for the last two years. This year the Hero Honda

MTV Roadies journey will begin on June 12th from Jaisalmer to Leh

with 13 bikers on Hero Honda Karizma, the only premium sports bike

in India. The show aims at testing the participants’ endurance and

bringing out the real riders in them.

Hero Honda Starts The Financial Year With Over 20% Growth

New Delhi, May 2, 2005: Hero Honda, the ‘World No. 1’ two-

wheeler company, has started the year with a bang. The company

sold impressive peak capacity 2,35,422 motorcycles during April

2005, a jump of 20.09% per cent as compared with the corresponding

period in the previous FY. The company had sold 1,96,024

motorcycles in April 2004.

The month also saw the launch of CD Deluxe, the stylish, true value,

100cc motorcycle from Hero Honda, encompassing the legendary

Hero Honda values of fuel-efficiency, economy and rock-solid

dependability. The new model comes with a unique suspension,

which smoothens and absorbs bumps on rough roads. Also, its double

tubular-cradle frame imparts extra stability to the motorcycle.

CD Deluxe is available at an ex-showroom price of Rs.33,900/- across

India, in five attractive colours - Candy Blazing Red, Black (2 stripes),

Candy Tahitian Blue, Cloud Silver, Amaranth Maroon and Cool Mint

Green. The new model is a part of the company’s efforts to offer

enhanced value-for-money to its customers.

KEY POLICIES

 AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help

you every step of the way in making your world a better place to live

in. Besides its will to provide a high-quality service to all of its

customers, Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the

important issues.

Hero Honda has been strongly committed not only to environmental

conservation programmes but also expresses the increasingly

inseparable balance between the economic concerns and the

environmental and social issues faced by a business. A business must

not grow at the expense of mankind and man's future but rather

must serve mankind.

"We must do something for the community from whose land we

generate our wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

 Environment Policy

We at Hero Honda are committed to demonstrate excellence in our

environmental performance on a continual basis, as an intrinsic

element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in

all our business processes and practices with specific

consideration to substitution of hazardous chemicals, where

viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental

compatibility.

Comply with all applicable environmental legislation and also

controlling our environmental discharges through the

principles of "alara" (as low as reasonably achievable).

Institutionalise resource conservation, in particular, in the

areas of oil, water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and

dealers / vendors, while promoting their involvement in

ensuring sound environmental management.

 Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we

do, particularly in our products and services which will meet and

exceed customer's growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in our total quality management

systems.

Teamwork and responsibility.

 Safety Policy

Hero Honda is committed to safety and health of its employees and

other persons who may be affected by its operations. We believe that

the safe work practices lead to better business performance,

motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative

requirements.

Empowering employees to ensure safety in their respective

work places.

Promoting safety and health awareness amongst employees,

suppliers and contractors.

Continuous improvements in safety performance through

precautions besides participation and training of employees.