HISTORY OF HERO HONDA

The success of the Hero Group lies in the determination and foresight of
the Munjal brothers, who shared their vision with their workers and led the
Group to a position where its name has become synonymous with top-
quality two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship company
Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O.
P. Munjal continue to carry the torch and are actively involved in the day-to-
day operations of the Hero Group.

The saga is being continued with the same zeal by the second and third
generations of the family and by the large working force of the Hero Group.
The spirit of enterprise which dominates the progress of the Group is
characteristic of the land where it all began - the City of Ludhiana, in
Punjab - home to some of lndia's finest workers and entrepreneurs. The
Hero Group is a thriving example of three generations of a family working
and striving together to ensure quality, satisfaction and extensive growth.

Milestones

Hero's success saga contains an element of spirit and enterprise; of

achievement through grit and determination, coupled with vision and
meticulous planning.

1956 Hero Cycles Limited is established.

1961 Rockman Cycles Industries Limited established, which is today the

largest manufacturer of bicycle chains and hubs.

1963 It pioneered bicycle exports from India - a foray into the international
market.

1971 Highway Cycles was set up to meet the demands of Hero Cycles. It is
today the largest manufacturer of single speed and multi-speed freewheels.

1975 Hero Cycles Limited became the largest manufacturer of bicycles in

India.

1978 Majestic Auto Limited was formed and the Hero Majestic Moped was
introduced.
1981 Munjal Castings established.

1984 Hero Honda Motors Limited established in joint venture with Honda
Motors of Japan, to manufacture motorcycles.

1985 Munjal Showa Limited established to manufacture shock absorbers and

struts and is today among the top two shock absorber manufacturing
companies in India.

1985 The 100 cc Hero Honda Motorcycle arrived and by 1988 was the No. 1
among all motorcycles in India.

1986 Hero Cycles Limited entered the Guinness Book of Records as the
largest bicycle manufacturer in the World.

1987 Hero Motors, a division of Majestic Auto Limited set up in collaboration

with Steyr Daimler Puch of Austria.

1987 Gujarat Cycles Limited, now known as Munjal Auto Industries Limited
was established to manufacture and export state-of-the-art bicycles and
allied products in its fully automated plant at Waghodia.

1987 Sunbeam Auto Limited, earlier a unit of HighwayCycles Limited,

established as an ancillary to Hero Honda. It is the largest die casting plant
in India.

1988 Introduced "Hero Puch" from Hero Motors Limited. This revolutionary
machine immediately set new records of petrol efficiency and usable power
in 50 - 65 cc machines.

1990 Hero Cold Rolling Division established and is one of the most modern
steel cold rolling plants.

1991 Hero Honda receives National Productivity Council's Award.

1991 Hero Honda receives the Economic Times – Harvard Business School
Association Award against 200 contenders.

1992 Munjal Showa Limited receives National Safety Award.

1993 Hero Exports established as the International Trading Division for Group
and non-Group products.

1993 Hero Motors becomes Indias largest exporter of two wheelers

1995 Hero Corporate Services Limited as the service segment for the Hero
Group Companies, ancillaries, suppliers, dealers and other associates.

1996 - Hero Winner, a large-wheeled scooter was introduced by Hero Motors

Limited with a choice of 50 cc and 75 cc engines.

1996 Munjal Showa Limited receives British Council's National Safety Award.

1998 - Hero Briggs and Stratton Auto Private Limited was set up to produce
4-stroke two-wheeler engines in various cubic capacities.

1998 Munjal Auto Components established to manufacture gear shafts and

gear blanks for motorcycles.

2000 The Hero Group diversifies into IT and IT enabled services through its
service segment - Hero Corporate Services Limited.

2000-
2001 Hero Honda emerges as the market leader in motorcycles with sales
of over a million motorcycles and a strong market share of 47%.

2001 Hero Global Design established to offer engineering services in

CAD/CAM/CAE related to New Product Development, Design, Engineering
and Manufacturing.

2002 Hero Cycles ties up with National Bicycle Industries, part of Matsushita
Group to manufacture high-end bicycles.

2002 Fastener World Established.

2002 Easy Bill Established to offer utility bill collection &retail services.

2003 Tie up with Livebridge Inc., USA.

2004 Tie up with Bombardier - Rotax GmbH for scooter engines.

2004 Tie up with Aprilia Scooters, Italy.

2004 Hero Honda continues as the World's largest manufacturer of two-

wheelers with annual sales volume of 2.07 million motorcycles and a market
share of 48%.

2004 Retail Insurance business established.

2004HeroITES, a division of Hero Corporate Service Limitedhived off as a
division of new company Hero Management Service Limited.

2005 HeroITES strengthens its relationship with ACS,USA,USD 5.0 billion

market cap and Fortune 500 company.

2006 Hero Honda enters the scooter segment, launches 100cc "Pleasure"

2006 Hero Honda crosses a unit sales threshold of 3.0 million motorcycles

2006 Hero Group celebrates Golden Jubilee year since inception.It was
commemorated by sales of over 15 million motorcycles & over 100 million
bicycles.

FILL IT. SHUT IT. FORGET IT

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 waspossible to drive a vehicle without polluting the roads. The
company introduced new generation motorcycles that set industry
benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it -
Forget it' campaign captured the imagination of commuters across India,
and Hero Honda sold millions of bikes purely on the commitment of
increased mileage.

Over 20 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. Every
30 seconds, someone in India buys Hero Honda's top -selling motorcycle –
Splendor. This festive season, the company sold half a million two
wheelers in a single month—a feat unparalleled in global automotive
history.

Hero Honda bikes currently roll out from its three globally benchmarked
manufacturing facilities. Two of these are based at Dharuhera and Gurgaon
in Haryana and the third state of the art manufacturing facility was
inaugurated at Haridwar, Uttrakhand in April this year. These plants
together are capable of producing out 4.4 million units per year.

Hero Honda's extensive sales and service network now spans over 3000
customer touch points. These comprise a mix of dealerships, service and
spare points, spare parts stockiest and authorized representatives of
dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM
initiative - Hero Honda Passport Program, one of the largest programs of
this kind in the world, has over 3 million members on its roster. The
program has not only helped Hero Honda understand its customers and
deliver value at different price points, but has also created a loyal
community of brand ambassadors.

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.''
 PRODUCT PROFILE

GLAMOUR
SPLENDOUR

HUNK
CD DAWN

KARIZMA
GLAMOUR
CBZ
PASSION PLUS
PASSION PRO
COMPETITORS OF HERO HONDA
TVS
HONDA
SUZUKI
BAJAJ
KINETIC