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Hero Honda Motors Limited: Now the World's largest 2-wheeler Company

business2media, New Delh- iJanuary 15, 2002

Hero Honda is now the largest two-wheeler company in the world with:

  • Targets revenue of US$ 1 billion in 2002-03: Operation One Billion (O2B

  • Many new products in the pipeline, as part of the next five years plan

  • To set up a third factory to increase capacity beyond two million p.a.

Hero Honda, the No. 1 two-wheeler Company in the country, has also achieved the distinction of emerging as the largest two-wheeler Company in the world - based on its performance during the calendar year 2001.

This was announced today at the Press Conference by Mr. Yoshihide Munekuni, Chairman and Representative Director, Honda Motor Company Limited, Japan. Hero Honda sold 1.3 Million motorcycles during the calendar year 2001.

This crowning performance comes on top of some solid achievements till date.

  • Commanding market share of 49% in motorcycles and 33% in two-wheelers.

  • Splendor, launched in 1995, becoming the world's largest selling motorcycle.

  • Passion, launched in January 2001 is already selling over 40,000 units per month.

The company's results for the first nine months of the FY 2001-02, announced recently, have further strengthened its leadership in the two-wheeler industry. The company crossed the one million unit sales mark in just nine months, delivering a sales volume growth of 36%, total turnover growth of 40%, and PAT growth of 63% - over the corresponding period last year. With this, Hero Honda has revised its volume outlook upward to 1.40 million motorcycles. This performance is even more striking, given the overall economic and industry slowdown. During the year the company has also demonstrated its commitment towards providing better value to its shareholders, by declaring a special interim dividend of 250% at the end of the second quarter.

To consolidate its leadership in the two-wheeler industry, the company has chalked out an ambitious business plan for the next five years. According to Mr. Brijmohan Lall, Chairman and Managing Director, Hero Honda Motors Ltd., "It is extremely satisfying to have achieved these landmark results. Excellent relationship with stakeholders, and the teamwork at Hero Honda have been the foundation for this. We have tried to pro-actively deliver great value to customers - consistently. To continue to meet the current and future needs of customers, we have submitted to Honda a product plan for 10 new two-wheeler models over the next 5 years. Of these, three products are already in the pipeline."

Talking about future plans, Mr. Pawan Munjal, Director and C.E.O. said, "Next year, we will enter the (Dollar) Billionaire's Club (in revenue). After Operation Million (OM) for 2000-01 volumes, our slogan for the next year is "Operation One Billion" (O2B). In order to proactively and effectively meet the increasing customer requirements, we are also planning for a third plant to increase capacity beyond two million motorcycles".

Mr. Pawan Munjal added, "As Hero Honda continues its growth curve, the scale of our operations will provide us with distinct competitive advantages, which will help us to provide customers with constant value additions in products as well as services. To support these initiatives, both Honda and Hero Honda would expand their R&D functions in India, to work on current and potential customer needs more speedily".

The period, April - December 2001 has been full of splendid accomplishments for Hero Honda. The company has been ranked No. 4 (up from No. 9 last year) in India by Review 200 - an annual survey of Asia's leading companies conducted by Far Eastern Economic Review. It was ranked No. 1 in the two-wheeler category on environmental performance by the Centre for Science & Environment. India's leading business daily, The Economic Times, also declared Hero Honda as 'The Most Trusted Automobile Brand' as part of its survey of India's most trusted brands. To top it all, Mr. Brijmohan Lall, Promoter-Chairman, Hero Honda, was also awarded the 'Entrepreneur of the Year Award' for the year 2001 by Ernst & Young.

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