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.

Distribution
The company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new
geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer
touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets
across the country.

Brand 
The company has been continuously investing in brand building utilizing not only the new product launch and new campaign
launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground-
level activation. 

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor
of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the
Commonwealth Games Delhi 2010. 

2009-10 Performance
Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
Total net operating income of Rs. 15860.51 Crores, growth of  28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4  per cent
EPS of Rs. 111.77, growth of 74.1  per cent

Hero Honda’s mission

Is to strive for synergy between technology, systems and human resources, to
produce products and 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. 

This 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.
 
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.

 
CODE OF CONDUCT
FOR DIRECTORS AND SENIOR MANAGEMENT

 I. INTRODUCTION
This Code of Conduct has been adopted by the Board of Directors of Hero
Honda Motors Limited for its members and the Senior executives one level
below, the Directors, including all functional heads (hereinafter referred to as
"Specified employee"). 

There are certain clauses of the Code, which are meant for Directors only such
as attending meetings of the Board and Committee thereof. The Specified
employees need to ignore such clauses. 

The principal duty of the Board of Directors, along with management, is to

ensure that the Company is well managed in the interests of its shareholders.
The Board of Directors plays the central role in the Company's governance. It is
the Company's decision-making authority on all matters except those reserved
to shareholders or delegated to the management. The Board of Directors is not
expected to assume an active role in the day-to-day management of the
Company.
 
 II. GUIDELINES FOR CONDUCT
Each director and Specified Employees seek to use due care in the performance
of his/her duties, be loyal to the Company, act in good faith and in a manner
such Director and Specified employee reasonably believes to be not opposed to
the best interests of the Company. A Director and Specified employee should
seek to also:
 
 Make reasonable efforts to attend Board and committee meetings.
 Dedicate time and attention to the Company.
 Comply with all applicable laws, regulations, confidentiality obligations
and corporate policies of the Company.
 Be independent in judgement and actions and to take all reasonable
steps to be satisfied as to the soundness of all decisions taken by the
Board of Directors.

 
 III. CORPORATE BUSINESS OPPORTUNITIES
In carrying out their duties and responsibilities, Directors and Specified
employees should avoid:
 
 Appropriating corporate business opportunities for themselves
that are discovered through the use of Company property or
information or their position as Directors and Specified employees.
 Using Company property or information, or their position as Director
and Specified employees, for personal gain.
 Competing with the Company.

A corporate business opportunity is an opportunity:

 
1. Which is in the Company's line of business or proposed expansion or
diversification.
2. Which the Company is financially able to undertake.
3. Which may be of interest to the Company.

A Director and Specified employee, who learns of such a corporate business

opportunity and who wishes to avail of it should disclose such opportunity to
the Company's Board of Directors. If the Board of Directors determines that the
Company does not have an actual or expected interest in such opportunity,
then, and only then, may the Director and Specified employee avail of it,
provided that the Director and Specified employee has not wrongfully utilized
the Company's resources in order to acquire such opportunity.
 
 IV. CONFLICTS OF INTEREST
 
 Each Director and Specified employee should endeavour to avoid
having his or her private interests interfere with:
i) the interests of the Company or
ii)his or her ability to perform his or her duties and responsibilities
objectively and effectively.
 They should avoid receiving, or permitting members of their
immediate family to receive, improper personal benefits from the
company, including loans from or guarantees of obligations by the
 Company, except as may be provided in their employment contract.
 They should make a full disclosure to the entire Board of any
transaction or relationship that such a Director and Specified
employee reasonably expects could give rise to an actual conflict of
interest with the Company and seek the Board's authorization to
pursue such transactions or relationships.

 
 V. COMPANY PROPERTY
In carrying out their duties and responsibilities, Directors and Specified
employees should endeavour to ensure that management is causing the
Company's assets, proprietary information and resources to be used by the
Company and its employees only for legitimate business purposes of the
Company.
 
 VI. CONFIDENTIAL INFORMATION
Director and Specified employees should maintain the confidentiality of
information entrusted to them in carrying out their duties and responsibilities,
except where disclosure is approved by the Company or legally mandated or if
such information is in the public domain.

The Company's confidential and proprietary information shall not be

inappropriately disclosed or used for the personal gain or advantage of any
Director and Specified employees or anyone other than the Company. These
obligations apply not only during a Director's and Specified employee's term,
but thereafter as well.

 
 VII. FAIR DEALING
In carrying out their duties and responsibilities, Director and Specified
employees should endeavour to deal fairly, and should promote fair dealing by
the Company, its employees and agents, with customers, suppliers and
employees.

Director and Specified employees should not seek to take unfair advantage of
the Company through manipulation, concealment, abuse of privileged
information, misrepresentation of material facts or any other unfair dealing.
 
 VIII. COMPLIANCE WITH LAWS AND REGULATIONS
In carrying out their duties and responsibilities, Directors and Specified
employees should comply, and endeavour to ensure that the management is
causing the Company to comply, with applicable laws, rules and regulations. In
addition, if any Director and Specified employee becomes aware of any
information that he or she believes constitutes evidence of a material violation
of any securities or other laws, rules or regulations applicable to the Company
or the operation of its business, by the Company, any employee or another
Director and Specified employee, then such Director and Specified employee
should bring such information to the attention of the Chairman of the Audit
Committee.
 
 IX. INSIDER TRADING
Director and Specified employees should observe all applicable laws and
regulations including the Company policies and Codes as applicable to them
with respect to the purchase and sale of the Company's securities.

It is the responsibility of each Director and Specified employee to become

familiar with and understand these laws, regulations, policies and codes and
should seek further explanations and advice concerning their interpretation, if
required.

Any waiver of or amendments to the Company's policies or Codes may be

made only by the Company's Board of Directors and will be disclosed promptly
as required by applicable laws and regulations including the rules of any
exchange on which the Company's securities are listed or traded.

Director and Specified employees should direct questions regarding the

application or interpretation of these guidelines to the Company
Secretary/Compliance Officer.

 
 X. ENCOURAGING THE REPORTING OF ILLEGAL OR UNETHICAL
     BEHAVIOUR
Director and Specified employees should endeavour to ensure that
management is causing the Company to promote ethical behaviour and to
encourage employees to report evidence of illegal or unethical behaviour to
appropriate Company personnel.

Director and Specified employees should endeavour to ensure that the

Company will not allow retaliation against any employee who makes a good
faith report about a possible violation of the Company's Code of Conduct.
 
 XI. NON-COMPLIANCE
Suspected violations of this Code may be reported to the Chairman of the
Board or the Chairman of the Audit Committee. All reported violations should
be appropriately investigated.

A Director and Specified employees charged with a violation of this Code should
not participate in or vote on the matter in the meeting of a Committee or the
Board concerning his/her alleged violation, but may be present at a meeting of
the Board or of a Committee convened for that purpose. 

Any waiver of this Director and Specified employees' Code must be approved
by the Board of Directors and publicly disclosed if required by any applicable
law or regulation. 

 
 XII. EMPLOYEES
The Director and Specified employee should respect each and every employee
of the Company, treat each of them in a fair and equitable manner; respect
their privacy and not to share/disclose their personal information without their
prior consent; maintain non-discriminatory approach and refrain from harassing
employees, making sexual advancements, coercion, threat by virtue of his/her
position with the Company.
 
 XIII. CUSTOMERS
The Director and Specified employee should ensure to provide products and
services, which meet the desired quality and safety standards and redress the
Customer's grievance genuinely.
 
 XIV. SHAREHOLDERS
The Director and Specified employee should ensure to protect shareholders
interest by ensuring maintenance of accurate and complete records by avoiding
false misleading or artificial entries in the Books of accounts.
 
This Directors' and Specified employees' Code sets forth guidelines
for conduct for the Board of Directors and Specified employees.
BOARD OF DIRECTORS
 
No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director & CEO
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Sumihisa Fukuda Technical Director
5 Mr. Om Prakash Munjal Non-executive Director
6 Mr. Sunil Kant Munjal Non-executive Director
7 Mr. Masahiro Takedagawa Non-executive Director
8 Mr. Satoshi Matsuzawa Non-executive Director
(Alternate Director to Mr. Takashi
Nagai)
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. Meleveetil Damodaran Non-executive & Independent
Director
15. Mr. Ravi Nath Non-executive & Independent
Director
16. Dr. Anand C. Burman Non-executive & Independent
Director
 
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.

SALES PERFORMANCE
 HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50
% NET PROFIT IN Q2, '08-09
 DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES &
OTHER OPERATING INCOME), AT RS. 3202 CRORE; EBIDTA
AT 13.58 PER CENT
  Aug'06 Aug'07 FY 06-07 FY 07-08
Total Sales 2,15,076 2,40,875 12,82,860 12,63,254
Exports (incl in above)
 
 Highlights of Q2, FY'08-09 

• Total turnover(Net sales & Other Operating income)Rs

3202 crores, growth of 35.6 per cent 
• Net profit after tax at Rs 306.30 crores, growth of 50 per
cent 
• EBIDTA margin for the quarter 13.58 per cent
• Total sales for Q2 stands at 9,72,095 units, growth of 28.5
per cent 
• Total sales for H1 stands at 18,66,349, growth of 19.7 per
cent
• Over 55 per cent share in domestic motorcycle market
• Launches first-of-its kind music video to celebrate 25 years
of Hero Honda 
New Delhi, October 21, 2008: Hero Honda Motors Ltd
(HHML), the world's largest two-wheeler company for seven
consecutive years, today firmly reiterated its undisputed
leadership in the domestic two-wheeler market with
impressive bottom line growth for the second quarter (Q2) –
July to September - of this financial year (FY) 2008-09. 

Even as the industry continued to face tough market

conditions on account of uncertainty over interest rates and
overall credit squeeze, the company reported 50 per cent
growth in profit after tax (PAT) at Rs 306.30 crore for the
second quarter. Hero Honda's profit after tax in the
corresponding period last fiscal (July - Sept, 2007-08) stood
at Rs 204.33 crore. 

Total turnover (Net sales & Other Operating income) grew to

Rs 3202 crore, a growth of 35.6 per cent over Rs 2361 crore
recorded in the corresponding period last fiscal. The company
has recorded an EBIDTA margin of 13.58 per cent in the
quarter. The EBIDTA margin in the previous quarter (April -
June '08) was 12.20 per cent. 

The strong financial performance is in line with the

company's better-than-industry top line growth. After
posting a growth 11.38 per cent in the first quarter, the
company kicked off the second quarter with a 39.8 per cent
growth in sales in the month of July, and followed up with
26.8 per cent growth in August and 22.4 per cent in
September. Hero Honda consistently keeps growing its share
in the domestic motorcycle market, and currently enjoys over
55 per cent share. 

Hero Honda's cumulative sales for the second quarter (Q2)

this FY stands at 9,72,095 units - a growth of 28.5 per cent
over Q2 last FY (2007-08). The cumulative sales for the first
six months (H1) stands at 18, 66,339 units of two-wheelers
compared to 15, 59,486 units sold in H1 in the last FY –
reflecting a consistent 19.7 per cent growth in cumulative
sales. 

Dr. Brij Mohan Lall, Chairman, Hero Honda Motors Ltd, said

"We are happy with our financial performance. It gives
immense joy to see this kind of results in the 25th year of our
company. I wish to thank all our stakeholders – customers,
associates, dealer friends, ancillaries and also our joint
venture partners Honda Motors Co – for their continuous
support." 

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said
"Our numbers speak for themselves. Even in this volatile and
competitive environment, our top line continues to outpace
the industry growth, our market share is at an all time high,
and the financial balance sheet is a delight – all the factors
which form the hallmark of a resilient company with cutting-
 edge management. We will continue to keep innovating – in
bringing in technologically-superior products, in our network
expansion, in brand building, in our financial management,
and in our communication." 

"Going forward, we will have to keep a close watch on the

commodity prices movement, and other factors such as
inflation, interest rate scenario and availability of retail
finance. These factors will play a crucial role in the industry
growth in the subsequent quarters," he added. 

Hero Honda has already rolled out its festive season

initiatives, with the launch of four new models – the all-
new "Passion Pro" and three refreshes of its existing models
- new CBZ X-treme, a self–start version of Splendor NXG and
the refreshed Pleasure. During the coming months, the
company will further augment its product portfolio with new
launches across segments. 

Key Hero Honda brands continue to drive strong volumes

across segments - CD Deluxe in entry segment, Glamour, the
new Splendor NXG, Splendor + and Passion Plus in deluxe
segment, and Hunk, CBZ X-treme and Karizma in the
premium segment. 

Celebrating its 25th year, Hero Honda released an innovative

music video in the month of September. Titled "Hero Honda
Dhak Dhak Go", and involving as many as eight brand
ambassadors of Hero Honda, the music video has been
receiving rave reviews. 

Hero Honda recently won two very coveted awards - "The

Most preferred Brand of two-wheelers" award at the recent
CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit
Business Leadership Award".
 

HERO HONDA CLOSES CALENDAR YEAR 2007 WITH SALES OF

OVER 33 LAKH BIKES

HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH

IMPRESSIVE GROWTH OF 15% IN MARCH’08

HERO HONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER

CENT INCREASE IN MAY SALES

HERO HONDA CONTINUES TO CONSOLIDATE MARKET

LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES

HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3

(FY 2007-2008)

HERO HONDA PASSES ON EXCISE DUTY CUT BENEFIT TO

CUSTOMERS
HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL
SALES IN OCTOBER 2008

HERO HONDA’S POSITIVE PERFORMANCE CONTINUES IN NOV’08

HERO HONDA’S SEPTMEBER ’08 SALES JUMP 22 PER CENT 

HERO HONDA’S STRONG SALES PERFORMANCE CONTINUES INTO

2008 

REPORTS 13% GROWTH IN CUMULATIVE SALES IN APR-NOV’08

 
HERO HONDA CLOSES CALENDAR YEAR 2007 WITH SALES OF
OVER 33 LAKH BIKES

New Delhi, Tuesday, April 21, 2009: Recap of year 2007… 

• Slew of launches across various segments this calendar

year
• Multi-focal strategy leading to better-than-industry
performance and gain in market share
• Doubled volume and share in the premium segment •
Consolidated over 50 per cent share in domestic motorcycle
market 

New Delhi, January 2, 2008: Hero Honda Motors Ltd

(HHML), the world’s largest two-wheeler manufacturer,
today reported cumulative sales of 33, 09,051units of two-
wheelers for the period January–December 2007. The
company’s cumulative sales for the calendar year 2006 was
32, 53,229. This achievement is significant in view of the
prevailing slow down of the two wheeler industry. 

For the month of December 2007, HHML reported sales of

240,532 units of two-wheelers. The company’s sales for the
corresponding period last year were 252,462 units. 

The better than industry performance of HHML through 2007

has been possible due to the company’s multi-focal strategy
of bringing in new products across segments, supporting
them with extensive 360 degrees communication, leveraging
properties such as cricket and entertainment for brand
building and augmenting its distribution network. As a result,
Hero Honda’s share in the domestic motorcycle market has
grown to upward of 50 per cent. 

Year 2007 saw Hero Honda launch new models across

segments. The company more than doubled its volume and
share in the premium segment this year, with the new all-
muscle and macho Hunk, and the sporty and stylish CBZ X-
treme both doing very well. 
 New 100cc bike Splendor NXG, refreshed Pleasure, new
Super Splendor, refreshed Passion Plus, were other additions
to Hero Honda’s product portfolio in 2007. The company
crossed the twenty million cumulative sales mark this year
and launched the special edition Splendor Plus to mark the
occasion. In the month of December, continuing with its
engagement with youth, Hero Honda brought the legendary
rock band Scorpions to India, for performances in Mumbai
and Bangalore as part of the band’s “Humanity World Tour
2007-08”. This came close on the hills of the very
popular ‘Hero Honda Campus Rock Idols’, a nationwide
contest of amateur rock bands that culminated into a grand
finale in Delhi in the first week of December.

 
HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH
IMPRESSIVE GROWTH OF 15% IN MARCH’08
FOR FY 2007-08, HERO HONDA OVERTAKES PREVIOUS
FISCAL’S SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE
INDUSTRY DECLINES BY MORE THAN 10 % 

New Delhi, Tuesday, April 21, 2009: Achievements and

Highlights for FY 07-08 
o Defying the industry trend, Hero Honda achieved sales of
33,37,142 units of two-wheelers, thereby consolidating
leadership in domestic motorcycles market with more than
52 per cent market share.
o Hero Honda retained the coveted position of 'World's No 1
two-wheeler company' on unit sales by a single company
during calendar year 2007 for the seventh year in a row.
o Crossed half a million retail sales in the festive season in
2007, and achieved landmark cumulative sales of twenty
million bikes in course of 2007. 

New Delhi, March 31, 2008: Hero Honda Motors Ltd

(HHML), the world’s largest two-wheeler manufacturer,
further consolidated its undisputed market leadership,
reporting impressive sales numbers for the month of March.
Once again, defying the industry trend, the company
sold 3,20,594 units of two-wheelers in the month, a growth
of 15 per cent. Hero Honda had sold 277,915 units of two-
wheelers in March 2007. 

The company’s total sales for the financial year 2007-08

stand at 33,37,142 two-wheelers, as compared to 33,36,756
units for the previous financial year (2006-07). This is
significant in view of the severe slowdown that the domestic
two-wheeler industry is going through for the past more than
a year. 

Mr. Pawan Munjal, Managing Director, Hero Honda Motors

Ltd said, “The year 2007-08 has seen a leadership
 performance from us. Despite the industry slowdown, we
have been able to manage positive growth thereby taking our
share in the domestic motorcycle market upward of 52 per
cent. At the end of the financial year, I would definitely like
to thank our millions of customers across the country, who
have made it possible. We will continue to focus on our
customers and they can surely look forward to many more
launches and various initiatives in the coming year.” 

HHML’s good run through the industry slump in 2007 has

been possible due to the company’s multi-focal strategy of
bringing in new models and variants across segments,
supporting them with innovative communication across
media, leveraging properties such as cricket and
entertainment for brand building and augmenting its
distribution network. 

Hero Honda also recently associated itself with the Indian

Premier League (IPL) as a partner and is also the official
sponsor of the Delhi Daredevils (Delhi’s IPL Team). 

Fiscal 2007-08 saw Hero Honda launch new models across

segments. The company more than doubled its volume and
share in the premium segment this year, with the new all-
muscle and macho Hunk, and the sporty and stylish CBZ X-
treme both doing very well. Other new launches such as
Splendor NXG, and refreshes of successful models including
Pleasure, Super Splendor, and Passion Plus, were added to
Hero Honda’s product portfolio in the FY 07-08. 

The company also crossed the landmark 20 million

cumulative sales during the course of year. 

For further information:

Sanjiv Singh / Santanu Gogoi,
9818430943 / 9810424271.

 
HERO HONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER
CENT INCREASE IN MAY SALES
NEW LAUNCHES SUCH AS THE REFRESHED SPLENDOR NXG &
HUNK DRIVING VOLUMES IN RESPECTIVE SEGMENTS 

New Delhi, Tuesday, April 21, 2009: New Delhi, June 1,

2008: Carrying on its impressive growth momentum in the
new financial year (2008-09), (HHML), the world’s largest
two-wheeler manufacturer for seven consecutive years,
today reported a 9.5 per cent growth in its sales in May
2008. 

Hero Honda sold 3,12,317 units of two-wheelers in May

2008, as compared to2,85,109 units in the corresponding
month last year. This comes close on the heels of a nine per
 cent growth the company had reported in the month of April
with sales of 2,86,252 units of two-wheelers. Thus Hero
Honda has already clocked a total sales of 5,98,569 units of
two-wheelers in this financial year. 

According to Mr. Anil Dua, Sr. Vice President (Marketing &

Sales), Hero Honda Motors Ltd., “Our recent launches such as
the refreshed Splendor NXG and the 150cc Hunk have been
driving volumes in their respective segments. While Hunk has
contributed largely to doubling our volume and share in the
premium segment, the refreshed Splendor NXG has been
driving the volumes in the deluxe segment. Our new
campaign for Splendor NXG is currently on air on all mainline
TV channels. We continue our strategy of brand building, and
we will continue to utilize our various properties in the field
of cricket and youth entertainment towards this end. We
have carried forward our commitment to the promotion of
cricket by partnering the highly-successful Indian Premier
League (IPL), as well as being the official team sponsor of
the Delhi Daredevils.” 

Hero Honda was bestowed the “Enterprise Excellence Award

2007” by the Indian Institution of Industrial Engineering
(IIIE) at an awards function held in Goa in the month of May.

 
HERO HONDA CONTINUES TO CONSOLIDATE MARKET
LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES

New Delhi, Tuesday, April 21, 2009: Reports robust sales of

305,516 units during the month 

• Cumulative sales in April – August ’08 grows by 19 per

cent 

New Delhi, September 1, 2008: Hero Honda Motors Limited

(HHML), the world’s largest two-wheeler manufacturer,
further consolidated its leadership in the domestic
motorcycle market, with a robust 26.8 per cent growth in
sales for the month of August 2008. The company
sold 305,516 units of two-wheelers in August 2008,
compared to 240,875 units in the corresponding month last
year. 

With this, Hero Honda’s cumulative sales in this financial year

so far (April-August 2008) stands at 14,81,077 units as
against 12,44,919 units in the corresponding period last year
– reflecting a 19 per cent growth in cumulative sales. 

This carries forward the company’s positive growth trajectory

since the beginning of this financial year (2008-09), further
augmenting its more than 55 per cent share in the domestic
 motorcycle market. 

According to Mr. Anil Dua, Sr. Vice President (Marketing &

Sales), Hero Honda Motors Ltd, “Our strategy is yielding
results. The strategy hinges on creating winning brands
across segments, investing in brand building, exploring
untapped markets in rural and upcountry areas while
consolidating urban presence and rapidly expanding our
network. However, the industry continues to face uncertainty
on account of high interest rates and overall credit squeeze.
The festival month of October is going to be crucial in
determining the overall outlook of the industry for the year.” 

Key Hero Honda brands continue to drive strong volumes

across segments - CD Deluxe in entry segment, Glamour, the
new Splendor NXG, Splendor + and Passion Plus in deluxe
segment, and Hunk, CBZ X-treme and Karizma in the
premium segment. 

Hero Honda’s scooter Pleasure has also been growing

strongly, with more than 12,000 units being sold in August
this year.

 
HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3
(FY 2007-2008)
REPORTS TURNOVER OF Rs. 2795 CRORE RECORDS EBIDTA
OF 13.95% 

New Delhi, Tuesday, April 21, 2009: Q3 Highlights 

Corporate performance: • Consolidated over 50% share in

the domestic motorcycle market
• Reported highest ever sales in a month in October 2007
(365,022 units)
• Crossed half a million retail sales in the festive season
• Closed calendar year 2007 with sales of over 33 lakh two-
wheelers 

Achievements: 

• Retained the coveted position of World No 1 two-wheeler

company for the seventh consecutive year
• Crossed landmark sales of Two Crore bikes; celebrated the
achievement with “Hero Honda BIKE-A-THON”- a nationwide
marathon of Hero Honda bikes under the “Hero Honda
Country” campaign

New Launches: 

• Launched two new models Hunk (150cc) & refreshed

Splendor+ along with a Special Edition
• Doubled volume and share in the premium segment -
currently own almost 20% share 

New Delhi, January 31, 2008: Hero Honda Motors Ltd.

(HHML), the world’s largest two-wheeler manufacturer,
today reported 31% per cent growth in profit after tax (PAT)
at Rs 275 crore for the third quarter (October-December) of
this financial year (2007-08). Hero Honda’s profit after tax in
the corresponding period last fiscal stood at Rs 209.18 crore. 

Total Turnover (sales turnover plus other income, net of

excise) grew to Rs 2795.17 crores, a growth of 3.54 per cent
over Rs 2699.63 crores recorded in the corresponding period
last fiscal. The company has recorded an EBIDTA margin of
13.95% in the quarter. The EBIDTA margin in the previous
quarter (July-September’07) was 12.39%. 

This strong financial performance comes close on the heels of

the company’s good overall sales even in the face of the
prevailing slowdown in the two-wheeler industry. Hero
Honda’s cumulative total turnover for the first three quarters
(April–December 2007) of this financial year stood at Rs.
7673.43 crores. 

Hero Honda's strategy for aggressive top line growth through

new product launches, brand building initiatives backed by
innovative communication has resulted in market share gain
across every segment. Indeed, Hero Honda’s share in
domestic motorcycles market has been growing upward of 50
per cent, despite the slowdown in the two-wheeler industry. 

According to Mr. Brijmohan Lall, Chairman, Hero Honda

Motors Ltd.,“Our performance during the third quarter of this
fiscal has been very encouraging considering the current
slowdown in the two-wheeler industry. We have been
consistently reporting better-than-industry sales numbers,
and it has also been reflected in our bottom line. We wish to
thank all our customers and stakeholders for reposing their
faith in our company and our products.” 

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda

Motors Ltd.said, “Given the industry slowdown scenario, we
are very enthused by our robust financial numbers for the
third quarter. However, this was not unexpected. We had
undertaken some strategic initiatives since the beginning of
this fiscal, including a conscious effort to rationalize costs
across the board, and its results are now visible. Our bottom
line has seen a consistent improvement, and we have been
able to demonstrate that it is possible to keep gaining market
share while maintaining a robust bottom line. 

“With input costs softening and our sharp focus on cost

efficiencies, we should be able to further improve upon our
financial results,” he added.
 
HERO HONDA PASSES ON EXCISE DUTY CUT BENEFIT TO
CUSTOMERS

New Delhi, Tuesday, April 21, 2009: REDUCES PRICES ON ALL

MODELS, RANGING FROM RS 1000/- TO RS 2400/- 
SALES 265,431 UNITS OF TWO-WHEELERS IN FEBRUARY 

New Delhi, March 1, 2008: Passing on the excise duty cut

benefit in Budget 2008 to customers, Hero Honda Motors Ltd
(HHML), the world’s largest manufacturer of motorcycles,
today reduced prices on all its models, ranging from
Rs1000/- to Rs 2400/-. 

The company, which sold 265,431 units of two-wheelers in

the month of February, reduced the price of Splendor+ by
about Rs 1300/- (ex-showroom Delhi) and on Karizma by
about Rs 2400/- (ex-showroom Delhi). Similarly, the price of
its best-selling 150cc bike Hunk has been reduced by about
Rs 1800/- (ex-showroom Delhi).

Mr. Pawan Munjal, MD & CEO, HHML, said “Hero Honda has

taken the voice of the customer to the government, and
consequently the excise duty on two-wheelers has been
reduced to 12 per cent from 16 per cent. This is a welcome
move, and we are happy to pass on the entire benefit to
customers. The reduction in excise duty cut will enable us to
draw more customers to our fold, but the basic factors
causing the industry slowdown still remain unattended.
Credit financing has been withdrawn in some key markets,
while interest rates on consumer loans also remain very high.
This credit squeeze continues to be the most critical factor
adversely impacting industry growth, and we still don’t see
any indication from the banks and the government to address
this concern. For the industry to make a turnaround and get
back on the path of growth, the government has to address
these key issues.”

 
HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL
SALES IN OCTOBER 2008

New Delhi, Tuesday, April 21, 2009: New Delhi, November 1,

2008: Close on the heels of an outstanding performance in
the second quarter (July – September 2008) with 50 per cent
growth in net profit, Hero Honda Motors Ltd (HHML), the
world's largest two-wheeler manufacturer, today reported its
highest-ever retail sales in a month, with more than six lakhs
units of two-wheelers being sold in the festive month of
October. This highest-ever retail sales in a month represents
 more than 12 per cent growth over its previous highest –
5.31 lakh units sold in October 2006. 

The dispatch numbers for the month of October stood at

352,449 units, as compared to 365,022 two-wheelers sold in
October 2007. 

According to Mr. Anil Dua, Sr. Vice President (Marketing &

Sales), Hero Honda Motors Ltd, "We are delighted with our
retail performance in October. We have always maintained
that we were expecting robust retail sales in the festive
month of October, and the number of more than six lakh
units in retail sales is a vindication of that. With the festive
season being over now, we do expect to see a slowdown in
the industry with the prevailing credit squeeze and interest
rates taking their toll on consumer sentiments. Keeping this
in mind, we have consciously restricted our dispatch sales in
October. 

"However, we will stay true to our winning strategy, and

keep refreshing our product portfolio and continue to invest
in brand building. We introduced four new models in the
month of October, and going forward, we will be launching a
few more in November as well." 

Hero Honda launched four new models in the festive month –

the all-new "Passion Pro Power Start", one variant – the
Splendor NXG Power Start, and two refreshes - new CBZ X-
treme and the Pleasure. During the coming months, the
company will further augment its product portfolio with new
launches across segments. 

Despite all odds, Hero Honda - the world's largest two-

wheeler manufacturer for seven consecutive years - has been
consistently strengthening its share in the domestic
motorcycle market and it has been steadily moving upwards
of 55 per cent. During the month of October, Hero Honda was
honoured with the "NDTV Profit Business Leadership Award"
in the two-wheeler category. The NDTV Profit Business
Leadership Awards acknowledge "the best, the brightest and
the most dynamic of Indian organisations that have emerged
leaders in their respective verticals and are leading India in
her journey toward being an economic superpower."

 
HERO HONDA’S POSITIVE PERFORMANCE CONTINUES IN NOV’08
REPORTS 13% GROWTH IN CUMULATIVE SALES IN APR-
NOV’08 

New Delhi, Tuesday, April 21, 2009: New Delhi, December 1,

2008: Hero Honda Motors Ltd continues to buck the
prevailing trend in the two-wheeler industry. 
 Close on the heels of record retail sales of more than 600,000
units in the festive month of October, Hero Honda today
reported dispatch sales of 289,426 units of two-wheelers in
November. The company had sold 288,027 units in November
2007. This achievement is significant, coming as it does
immediately after the bumper festive season, when the sales
are usually expected to slacken considerably. 

The company’s cumulative sales in the financial year so far

(April-November’08) has now risen to 25,08,214 units – a 13
per cent growthover the corresponding period last year
(April-November’07) when Hero Honda had sold 22,12,535
units. 

According to Mr. Anil Dua, Senior VP (Marketing & Sales),

Hero Honda Motors Ltd, “Our performance in November
comes against several odds. Scarcity of retail finance in many
key markets and the high rates of interest remain a major
concern. As the industry leader, our focus has been on driving
growth despite these constraints. Therefore, our
performance in November is of added significance, as it has
surpassed the numbers of November’07 – which was the
high-sales Diwali month last year.” 

Having already launched five new models in this financial

year, including variants and refreshes, Hero Honda is set to
announce a few more launches in the coming weeks. The
new launches will be across segments to further augment the
already strong Hero Honda range. 

Hero Honda brands have been driving volumes in their

respective segments - CD Deluxe in the entry segment;
Glamour, Splendor NXG, Splendor+ and Passion Plus in the
Deluxe segment, CBZ X-treme and Hunk in the Premium
segment and Pleasure in scooters. 

The new CBZ X-treme, which was introduced in October, is

being communicated through a new cutting-edge, fast-paced
TV Commercial (TVC) currently on air across channels. The
new refreshed Pleasure, which is clocking an average of
approx 12,000 units per month, is also being supported by a
new TVC featuring its brand ambassador Priyanka Chopra. 

Hero Honda continues to invest in brand building and

strengthening its association with properties such as cricket.
Hero Honda was the title sponsor of the recently-concluded
Hero Honda Cup One-Day International (ODI) Series between
India and England which India won 5-0.

 
HERO HONDA’S SEPTMEBER ’08 SALES JUMP
22 PER CENT 
New Delhi, Tuesday, April 21, 2009: •
Reports robust sales of 385,262 units
during the month 
• Cumulative sales jump by 19.6 per cent 
• Company launches first-of-its kind music
video to celebrate 25 years of Hero Honda 

New Delhi, October 1, 2008: Hero Honda

Motors Limited (HHML), the world’s largest
two-wheeler manufacturer, has reiterated
its undisputed market leadership by
recording an impressive 22.4 per cent
growth in sales for the month of September
2008. 

The company sold 385,262 units of two-

wheelers in September 2008, compared to
314, 567 units in the corresponding month
last year. With this, Hero Honda’s
cumulative sales in this financial year so far
(April-September 2008) stands at
18,66,349 units as against 15,59,486 units
in the corresponding period last year –
reflecting a robust 19.6 per cent growth in
cumulative sales. 

According to Mr. Anil Dua, Sr. Vice

President (Marketing & Sales), Hero Honda
Motors Ltd, “ It gives us immense pleasure
to see our strategy consistently yielding
results and the company recording
progressive sales numbers in its twenty
fifth year. We have been driving the growth
in the industry despite the interest rate
scenario and overall credit squeeze in the
market remaining unchanged. With new
launches on the anvil and the forthcoming
festive season, we are confident of
performing well in the coming month.” 

Celebrating its 25th year, Hero Honda

Motors Limited (HHML) released an
innovative music video in the month of
 September. Titled “Hero Honda Dhak Dhak
Go”, and involving as many as eight brand
ambassadors of Hero Honda, the music
video has been receiving rave reviews. 

Hero Honda won the coveted, “The Most

preferred Brand of two-wheelers” award at
the recent CNBC Awaaz Consumer Awards
2008.

 
HERO HONDA’S STRONG SALES
PERFORMANCE CONTINUES INTO 2008 
Reports sales of 298,050 units in January
2008 

New Delhi, Tuesday, April 21, 2009: New

Delhi, February 1, 2008: Close on the heels
of a robust bottom line growth for the third
quarter ended December’07, Hero Honda
Motors Ltd (HHML), the world’s largest
two-wheeler manufacturer, today reported
excellent sales numbers for the month of
January, yet again defying the industry
trend. 

Despite an industry slowdown, the

company reported an impressive 298,050
unit sales for the month of January 2008,
as against 297,554 in January 2007. With
this, Hero Honda’s cumulative sales for the
current fiscal now stand at 27,51,376
units. 

HHML on Thursday reported 31 per cent

growth in profit after tax (PAT) at Rs 275
crore for the third quarter (October-
December) of this financial year (2007-08).
Hero Honda’s profit after tax in the
corresponding period last fiscal stood at Rs
209.18 crore. 

According to Mr. Pawan Munjal, Managing

Director & CEO, Hero Honda Motors
 Ltd., “The sales numbers reflect a good
start to the calendar year. Given the
industry performance all through this
fiscal, we are extremely enthused by our
robust financial numbers for Q3 as well as
our outstanding sales performance this
month. Our new launches have been doing
very well across segments, e.g. our latest
launch, the 150cc Hunk has been a big
draw with our customers, and has helped
us double our volume and share in the
premium segment.” 

Hero Honda was recently honored as the

“Bike Manufacturer of the Year” at the
Overdrive Awards, and also at the NDTV
Profit - Car India Bike India Awards.
Additionally, its premium bike 150 cc Hunk
won the coveted “Viewer’s Choice Award”
at the NDTV Profit - Car India Bike India
Awards. 

Three of Hero Honda’s leading brands also

won the TNS Voice of the Customer Awards
in their respective segments - TNS Voice of
the Customer No1 Executive Motorcycle -
Splendor NXG, No 1 standard Motorcycle -
CD Deluxe and No 1 Premium Motorcycle
CBZ X-treme. 

Hero Honda also won two prestigious

customer loyalty awards in the month of
January - the “Best Customer Loyalty
Program Award (Automotive)” at the
recent Asia Retail Congress, and “Customer
and Brand Loyalty Award” in automobile
sector (two-wheelers) at the Loyalty
Summit 2008. These recognitions truly
exemplify the customers’ enduring trust
and faith in the company and its products.

 
REPORTS 13% GROWTH IN CUMULATIVE
SALES IN APR-NOV’08
New Delhi, Tuesday, April 21, 2009: New
Delhi, December 1, 2008: Hero Honda
Motors Ltd continues to buck the prevailing
trend in the two-wheeler industry. 

Close on the heels of record retail sales of

more than 600,000 units in the festive
month of October, Hero Honda today
reported dispatch sales of 289,426 units of
two-wheelers in November. The company
had sold 288,027 units in November 2007.
This achievement is significant, coming as
it does immediately after the bumper
festive season, when the sales are usually
expected to slacken considerably. 

The company’s cumulative sales in the

financial year so far (April-November’08)
has now risen to 25,08,214 units – a 13 per
cent growth over the corresponding period
last year (April-November’07) when Hero
Honda had sold 22,12,535 units. 

According to Mr. Anil Dua, Senior VP

(Marketing & Sales), Hero Honda Motors
Ltd, “Our performance in November comes
against several odds. Scarcity of retail
finance in many key markets and the high
rates of interest remain a major concern.
As the industry leader, our focus has been
on driving growth despite these
constraints. Therefore, our performance in
November is of added significance, as it has
surpassed the numbers of November’07 –
which was the high-sales Diwali month last
year.” 

Having already launched five new models

in this financial year, including variants and
refreshes, Hero Honda is set to announce a
few more launches in the coming weeks.
The new launches will be across segments
 to further augment the already strong Hero
Honda range. 

Hero Honda brands have been driving

volumes in their respective segments - CD
Deluxe in the entry segment; Glamour,
Splendor NXG, Splendor+ and Passion Plus
in the Deluxe segment, CBZ X-treme and
Hunk in the Premium segment and
Pleasure in scooters. 

The new CBZ X-treme, which was

introduced in October, is being
communicated through a new cutting-
edge, fast-paced TV Commercial (TVC)
currently on air across channels. The new
refreshed Pleasure, which is clocking an
average of approx 12,000 units per month,
is also being supported by a new TVC
featuring its brand ambassador Priyanka
Chopra. 

Hero Honda continues to invest in brand

building and strengthening its association
with properties such as cricket. Hero Honda
was the title sponsor of the recently-
concluded Hero Honda Cup One-Day
International (ODI) Series between India
and England which India won 5-0. 

Sales Promotion.
Sales promotion is any initiative undertaken by an organisation to promote an increase in
sales,usage or trial of a product or service (i.e. initiatives that are not covered by the other
elements ofthe marketing communications or promotions mix). Sales promotions are varied.
Often they areoriginal and creative, and hence a comprehensive list of all available techniques is
virtuallyimpossible (since original sales promotions are launched daily!). Here are some
examples ofpopular sales promotions activities:
(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating
promotion.For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you
sell twofor $1, you are still in profit - especially if there is a corresponding increase in sales. This
isknown as a PREMIUM sales promotion tactic.
(b) Customer Relationship Management (CRM) incentives such as bonus points or money off
coupons. There are many examples of CRM, from banks to supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion. For example, in
theUnited Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a
consumerwould enter the code into a dynamic website to see if they had won a prize. Consumers
couldalso text codes via their mobile phones to the same effect.
(d)Merchandising additions such as dump bins, point-of-sale materials and product
demonstrations.
(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich
purchase. Once the card was full the consumer was given a free sandwich.
2

(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their
customerswith the latest low-price deals once new flights are released, or additional destinations
areannounced.
(g) Joint promotions between brands owned by a company, or with another company's
brands.For example fast food restaurants often run sales promotions where toys, relating to a
specificmovie release, are given away with promoted meals.
(h)Free samples (aka. sampling) e.g. tasting of food and drink at sampling points
insupermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to
potentialconsumers at supermarkets, in high streets and at petrol stations (by a promotions team).
(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The
Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the less well off
farmers and producers, are becoming more popular.
(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.
Many of the examples above are focused upon consumers. Don't forget that promotions can
beaimed at wholesales and distributors as well. These are known as Trade Sales
Promotions.Examples here might include joint promotions between a manufacturer and a
distributor, salespromotion leaflets and other materials (such as T-shirts), and incentives for
distributor salespeople and their retail clients.
3
OBJECTIVES

 To have an overview of HERO HONDA BIKES.

 To know the reputation of HERO HONDA BIKES in the market.

 How the consumer preference towards the brand HERO HONDA BIKES.

 The main objective how to increase the reputation of HERO HONDA BIKES brand in
the market.
 To understand its competitors in business.
 How HERO HONDA BIKES will create a good image in the market.
 To understand the 4 Ps used by the HERO HONDA BIKES in business.
 A study of present & potential various market of HERO HONDA BIKES.
 It has been based on a survey over the market and other behavior aspect.
 The survey is also aimed at reviewing the competitiveness of various HEROHero hero
honda bikes toward the YOUNG BIKE RIDER