Honda Selected the Hero Group for a Variety Of
Content
Honda selected the Hero Group for a variety of reasons which included. Its engineering capability. y Relevance and salience of H ERO brand. y Distribution network. y Commitment to Quality. y Know-how and experiencein handling largevolume production and distribution. y Tightfocus onfinancial and raw material processes. y CordialIndustrial Relations Introduction On Hero. y Hero group was started by the four Munjal brothers in the year 1944 byestablishing bicycle spare parts business in Amritsar. y Hero Cycles manufactured over 16000 Bicycles a day. y They sold about 86 million bicycles in aggregate as of 2 008. y They had nurtured anexcellent network of dealers to serve Indias expansivemarkets. y Over the yearsHero Group hadentered multiple business areas Introduction On Honda Motors.
y Honda Motor Company Ltd is a Japanesemultinational corporation primarily known as a manufacturer of automobiles and motorcycles. y Founded: 24 S eptember 1948 y Founders:SoichiroHonda, Takeo Fujisawa y First production automobile f romHonda was the T360 mini pick-up truck powered by a small 356 cc straight-4 gasoline engine. y First production carfromHonda was the S500sports car Contd. y Honda Motors initial plans called for both two-wheeler market and the e lectric generator market. y Honda Motors first chose Kinetic Engineering Ltd. and formed Kinetic Honda Motors Ltd and this Joint Ventureworked in the field ofScooters Manufacturing. y Honda Motors cameto the Hero Group as thelast compromise choice f or its motorcycle venture The Deal is Done (June 1984). y Honda agreed to providetech. know-how to Hero Honda
Motors and setting up manufacturingfacilities. This included the f uture R & Defforts. y Honda agreed for a lump sum feeof $500,000 & 4% royalty. y Both Partners held26% of the equity with other26% sold to the public and the rest held tofinancial institutions Success Story. y Hero Honda Motors had grown consistently, earning thetitle of the worlds largest motorcycle manufacturer after having churned out 1.3 million vehicles in2001. y During the f iscal year2008-09, the company has sold 3.28 million bikes and the net profit of the company stood at `1281.7 crores, up 32%from the previousfiscal year y Worlds largest two-wheeler manufacturer with annual sales volume of over2 million motorcycles. y Owns worlds biggest selling motorcycle brand HeroHonda Splendor. y Deep market penetration with 5000 outlet Reasons for success.
y The deep penetration network of Hero largely benefited the sales. y Absence of major competitors in initial years. y Sound and proven technical capabilities of H onda and the reliability of Hero. y Increased market for motorcycles: y Better Fuelefficiency. y Change in peoples perception Some concerns. y In August 1999, Honda Motors announced Honda Motorcycle & ScooterIndia to initially make scooters and later, motorcycles as well.HeroHonda Motors stock plummeted by 30% on the day of the announcement. y Competition hotting up Honda Motors Selects Cyberoam for Reliable and Cost-effective Network Protection In April, 1984 Hero Cycles, India and Honda Motor Company, Japan inked a joint venture and the world's single largest motorcycle company was born. Hero Honda Motors Limited (HHML) is theWorld No. 1 two wheeler company and one of Honda Motor Company's most successful joint ventures, globally. HHML's performance was nothing less than a revolution on two-wheels. Hero
Honda has sold over 15 million motorcycles and has consistently shown a double digit growth since its inception. Today, every second, a motorcycle sold in the country is a Hero Honda. In two decades, Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana. These facilities now churn out over 3.5 million motorbikes per year. Hero Honda Hero Honda Motors Ltd. Public company Type BSE:HEROHONDA M Industry Automotive January 19, 1984 in Founded Gurgaon, Haryana, India Headquarters New Delhi[1], India Brijmohan Lal Munjal (chair and founder) Key people Toshiaki Nakagawa (joint managing director) Pawan Munjal
Products Revenue Website
(Managing Director & CEO)[2] Motorcycles, Scooters U$ 2.8 billion[citation
needed]
www.Herohonda.com
Hero Honda Motors Limited is a two wheeler manufacturer based in India. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan[3]. The company is the largest two wheeler manufacturer in India [4] and also has been referred to as the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year[citation needed]. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.[5] In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. Company profile “Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda [6] Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.[7] Hero Honda has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000,[8] called the Hero Honda Passport Program. Company Performance During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market[9]. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together.[10] Hero Honda's bike Hero Honda Splendor, the world's largest-selling motorcycle for the years 20012003[11], selling more than one million units per year.[12] Termination of Hero and Honda Joint Venture
In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda.[13]. Under the joint venture Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda for R & D for new bike models. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.[14]
y Honda Motor Company Ltd is a Japanesemultinational corporation primarily known as a manufacturer of automobiles and motorcycles. y Founded: 24 S eptember 1948 y Founders:SoichiroHonda, Takeo Fujisawa y First production automobile f romHonda was the T360 mini pick-up truck powered by a small 356 cc straight-4 gasoline engine. y First production carfromHonda was the S500sports car Contd. y Honda Motors initial plans called for both two-wheeler market and the e lectric generator market. y Honda Motors first chose Kinetic Engineering Ltd. and formed Kinetic Honda Motors Ltd and this Joint Ventureworked in the field ofScooters Manufacturing. y Honda Motors cameto the Hero Group as thelast compromise choice f or its motorcycle venture The Deal is Done (June 1984). y Honda agreed to providetech. know-how to Hero Honda
Motors and setting up manufacturingfacilities. This included the f uture R & Defforts. y Honda agreed for a lump sum feeof $500,000 & 4% royalty. y Both Partners held26% of the equity with other26% sold to the public and the rest held tofinancial institutions Success Story. y Hero Honda Motors had grown consistently, earning thetitle of the worlds largest motorcycle manufacturer after having churned out 1.3 million vehicles in2001. y During the f iscal year2008-09, the company has sold 3.28 million bikes and the net profit of the company stood at `1281.7 crores, up 32%from the previousfiscal year y Worlds largest two-wheeler manufacturer with annual sales volume of over2 million motorcycles. y Owns worlds biggest selling motorcycle brand HeroHonda Splendor. y Deep market penetration with 5000 outlet Reasons for success.
y The deep penetration network of Hero largely benefited the sales. y Absence of major competitors in initial years. y Sound and proven technical capabilities of H onda and the reliability of Hero. y Increased market for motorcycles: y Better Fuelefficiency. y Change in peoples perception Some concerns. y In August 1999, Honda Motors announced Honda Motorcycle & ScooterIndia to initially make scooters and later, motorcycles as well.HeroHonda Motors stock plummeted by 30% on the day of the announcement. y Competition hotting up Honda Motors Selects Cyberoam for Reliable and Cost-effective Network Protection In April, 1984 Hero Cycles, India and Honda Motor Company, Japan inked a joint venture and the world's single largest motorcycle company was born. Hero Honda Motors Limited (HHML) is theWorld No. 1 two wheeler company and one of Honda Motor Company's most successful joint ventures, globally. HHML's performance was nothing less than a revolution on two-wheels. Hero
Honda has sold over 15 million motorcycles and has consistently shown a double digit growth since its inception. Today, every second, a motorcycle sold in the country is a Hero Honda. In two decades, Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana. These facilities now churn out over 3.5 million motorbikes per year. Hero Honda Hero Honda Motors Ltd. Public company Type BSE:HEROHONDA M Industry Automotive January 19, 1984 in Founded Gurgaon, Haryana, India Headquarters New Delhi[1], India Brijmohan Lal Munjal (chair and founder) Key people Toshiaki Nakagawa (joint managing director) Pawan Munjal
Products Revenue Website
(Managing Director & CEO)[2] Motorcycles, Scooters U$ 2.8 billion[citation
needed]
www.Herohonda.com
Hero Honda Motors Limited is a two wheeler manufacturer based in India. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan[3]. The company is the largest two wheeler manufacturer in India [4] and also has been referred to as the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year[citation needed]. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.[5] In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. Company profile “Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda [6] Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.[7] Hero Honda has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000,[8] called the Hero Honda Passport Program. Company Performance During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market[9]. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together.[10] Hero Honda's bike Hero Honda Splendor, the world's largest-selling motorcycle for the years 20012003[11], selling more than one million units per year.[12] Termination of Hero and Honda Joint Venture
In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda.[13]. Under the joint venture Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda for R & D for new bike models. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.[14]
