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History of Hero Moto Corp

Hero MotoCorp Ltd. has held the title of being the world’s leading motorcycle and scooter manufacturer in terms of unit sales since 2001. Established in 1984, it originated as a partnership between Hero Cycles of India and Honda of Japan. On July 29, 2011, the company underwent a name change from Hero Honda Motors Limited to Hero MotoCorp Limited when the joint venture concluded.

The roots of Hero MotoCorp can be traced back to 1944 when Brijmohan Lall Munjal laid the foundation for Hero Cycles. Hero Cycles swiftly gained prominence as the largest bicycle manufacturer in India. In 1983, Munjal teamed up with Honda to establish Hero Honda Motors Limited. This collaboration proved immensely successful, rapidly establishing Hero Honda as the dominant force in the Indian two-wheeler market.

In 2011, the Hero-Honda partnership came to a close, leading to the formation of Hero MotoCorp. Despite the separation from Honda, Hero MotoCorp sustained its prominent position in the Indian two-wheeler market. It diversified its product range, introduced new technologies, and intensified its focus on international markets.

In 2022, Hero Motocorp crossed the sale of over 100 million motorcycles and scooters by Hero MotoCorp since its inception. Hero MotoCorp stands as a significant player in the Indian two-wheeler market and a global force in the motorcycle industry. With a history marked by innovation and accomplishment, the company is poised for continued growth in the years ahead.

Business Segments

Hero MotoCorp operates within two primary business segments:

1. Motorcycles: The company offers a broad range of motorcycles, catering to various segments, such as commuter, sports, and adventure. Notable models include the Splendor, Passion, Xtreme, and Glamour. Hero also has tie-ups with Harley Davidson and Zero Motorcycles to establish their premium motorcycle segment in India.
2. Scooters: In addition to motorcycles, Hero MotoCorp offers a diverse lineup of scooters, which encompass commuter, premium, and electric variants. Prominent scooter models comprise the Pleasure, Maestro and Vida V1.

Apart from its core segments, Hero MotoCorp engages in other business areas:

1. Parts and Accessories: The company supplies a comprehensive array of parts and accessories designed for its motorcycles and scooters. This encompasses essential safety gear like helmets and also includes spare parts.
2. Finance: Through its subsidiary, Hero FinCorp, the company provides various financing solutions to its customers. These options span from loans to leases, primarily aimed at facilitating the purchase of motorcycles and scooters.
3. Technology: Hero MotoCorp maintains a dedicated technology centre focused on advancing innovations in the automotive sector. Its endeavours include the development of technologies for electric vehicles, connected vehicles, and autonomous vehicles.

Hero MotoCorp demonstrates a diversified business portfolio with a significant presence in both the motorcycle and scooter markets. Furthermore, the company is strategically positioned to harness the emerging market demand for electric vehicles in the future.

Subsidiaries of Hero Motocorp: 

1. Hero Tech Center Germany GmbH: Hero Tech Center Germany GmbH, a research and development subsidiary, was established in 2011 in Munich, Germany. With a team of over 100 engineers and designers, the company focuses on critical areas, including engine development, vehicle dynamics, chassis design, and electronics. It also plays a vital role in the development of Hero MotoCorp’s electric vehicles.
2. HMCL Netherlands B.V.: HMCL Netherlands B.V., founded in 2011 in Amsterdam, Netherlands, serves as the holding company for Hero MotoCorp’s global operations. It oversees multiple international subsidiaries, including HMCL Niloy Bangladesh Limited, HMCL Americas Inc., and HMCL Colombia S.A.S., managing international sales, marketing, and providing support.
3. HMCL Niloy Bangladesh Limited: Founded in 2013 and headquartered in Dhaka, Bangladesh, HMCL Niloy Bangladesh Limited operates a manufacturing facility in Savar, Bangladesh. The facility produces motorcycles and scooters for the Bangladeshi market, boasting strong brand recognition and an extensive dealer network.
4. HMC MM Auto Limited: HMC MM Auto Limited, established in 2014 in New Delhi, India, operates a manufacturing facility in Neemrana, Rajasthan, producing motorcycles and scooters for the Indian market. With a robust brand presence and an extensive dealer network, it is a significant player in the Indian two-wheeler market.

Key Personnel 

1. Dr Pawan Munjal, Executive Chairman and Whole-Time Director 

Dr Pawan Munjal is a respected figure in Indian business. He holds the position of Executive Chairman and Whole-Time Director at Hero MotoCorp. Under his leadership, Hero MotoCorp has held the title of the world’s largest motorcycle manufacturer for 22 consecutive years, producing over 112 million units. Dr Munjal’s leadership at Hero MotoCorp has driven the company to form innovative collaborations with renowned international brands such as Harley-Davidson and Zero Motorcycles. These partnerships are focused on creating forward-looking, tech-infused mobility solutions.

Management Outlook

• Favorable macroeconomic conditions in India: The Indian economy is expected to grow at a healthy pace in the coming years. The per capita income is expected to grow by 70% to $4000 by 2030. This will lead to rising disposable incomes and increased demand for two-wheelers.
• Government support for the two-wheeler sector: The Indian government has been supportive of the two-wheeler sector. It has taken a number of steps to boost demand for two-wheelers, such as reducing GST rates and providing subsidies for electric two-wheelers.
• HMCL’s strong brand and distribution network: HMCL has a strong brand and a wide distribution network in India. This will help the company to maintain its market share in the coming years. Hero Motocorp has a distribution network of more than 6,500 dealerships and service centres.
• Accelerate penetration in the premium segment: HMCL is aiming to increase its market share in the premium segment of the two-wheeler market. The company has launched a number of new premium products in recent years, and it plans to continue to invest in this segment.
• Expand international presence: HMCL is also aiming to expand its international presence. The company is currently present in over 40 countries, and it plans to enter new markets in the coming years.
• Invest in new technologies: HMCL is investing heavily in new technologies, such as electric vehicles and connected vehicles, by launching Vida. The company expects technologies and EVs to play a major role in the future of the two-wheeler market.