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Imagine walking for more than 100km? Imagine you have to reach a place immediately but don’t have a transportation system? Well, thanks to the automotive industries for coming up with motor vehicles. Automotive industries started in the 1860s with many manufacturers beginning manufacturing horseless carriages.
Most of the automotive industries began rising in Europe, and Asian parts, are also contributing to a large extent to the development of this industry.
This Indian multinational motor vehicle manufacturer, Hero MotoCorp Limited is one of the largest two-wheeler manufacturers in the world. Popularly known as Hero Honda changed its name to Hero MotoCorp in 2010. This automotive industry is 38 years old and has its headquarters in New Delhi.
Learn all about Hero MotoCorp’s startup story and its growth, founders and team, business model, revenue model, challenges faced, and future plans.
Hero MotorCorp – Company Highlights
| Startup Name | Hero MotoCorp |
|---|---|
| Headquarters | New Delhi |
| Sector | Automotive |
| Founder | Brijmohan Lall Munjal |
| Founded | 1984 |
| Total Assets | ₹22,161 crores (US$2.9 billion) (2021) |
| Revenue | ₹31,517 crores (US$4.1 billion) |
| Total Equity | ₹15,198 crores (US$2.0 billion) |
| Parent Organisation | Hero Motors Company |
| Website | heromotocorp.com |
Hero MotoCorp – About and How Does It Work?
Hero MotoCorp – Founder and Team
Hero MotoCorp – Startup Story
Hero MotoCorp – Mission and Vision
Hero MotoCorp – Name, Tagline, and Logo
Hero MotoCorp – Business Model
Hero MotoCorp – Revenue Model
Hero MotoCorp – Investments and Partnerships
Hero MotoCorp – Acquisitions
Hero MotoCorp – Challenges Faced
Hero MotoCorp – Competitors
Hero MotoCorp – Awards and Achievements
Hero MotoCorp – Advertisements and Social Media Campaigns
Hero MotoCorp – Future Plans
Hero MotoCorp – About and How Does It Work?
Hero MotoCorp engages in the manufacturing of motorcycles and scooters. Basically, the company is more into two-wheeler manufacturing, which makes them the world’s largest two-wheeler manufacturer as well as in India.
It boasts of providing its customers with varieties of two-wheelers that are not only comfortable but are aesthetically appealing. The company has eight production sites, including six in India (Dharuhera, Chittoor, Gurugram, Haridwar, and Gujarat) and one each in Colombia and Bangladesh.
As the biggest and greatest bike manufacturer in India and the “World No. 1” two-wheeler firm in terms of unit volume sales in a calendar year, the company earned the most coveted recognition in 2001 and continues to remain till now.
Hero MotoCorp – Founder and Team
The Hero Group, the parent organisation of Hero MotoCorp is founded by Brijmohan Lall Munjal.
Brijmohan Lall Munjal
Brijmohan was born in Kamalia in 1923, in a district of present-day Punjab, Pakistan. After moving to Amritsar, Brijmohan started selling bicycle parts with his three brothers. After a few years, he transferred to Ludhiana, where he started manufacturing bicycle parts under Hero Cycles Limited.
Quickly, he got the license for manufacturing bicycles from the Government of India with a financial capital of Rs 6 lakhs. He is a recipient of the Padma Bhusan Award by the Government of India in 2005.
He has also received the Lifetime Contribution Award by the All India Management Association in 2011, and the Forbes India Leadership Award for Lifetime Achievement in 2014.
Brijmohan was 92 when he died due to a brief illness on 1 November 2015. He was married to Santosh and has four sons and one daughter.
Brijmohan’s popular quote is, “DON’T DREAM IF YOU CAN’T FULFILL YOUR DREAMS”
Dr. Pawan Munjal
Dr. Pawan Munjal is currently the Chairman and CEO of Hero MotoCorp. He is one of the most qualified, and corporate leaders who have left his marks on socio-economic growth and technological innovation.
Due to his expertise in the field of leadership quality, he made the company achieve the coveted title of World No. 1 two-wheeler company in 2001 and has successfully retained this position to date for almost 20 consecutive years.
Dr. Munjal holds executive roles in important Indian industry organisations, including the Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers, in addition to serving on the boards of other corporations (SIAM).
Besides, he also serves on the Board of members in many other companies namely, Munjal Acme Packaging Systems Private Limited, Pan Mining Private Limited, Indian School of Business, Hero Future Energies Global Limited, Rockman Industries Limited, and Bahadur Chand Investments Private Limited.
Hero MotoCorp – Startup Story
Hero MotoCorp’s history may be traced back to the idea of an independent, mobile India propelled by its two-wheelers.
Initially, it began its operations as a joint venture between Hero Cycles of India and Honda of Japan, which gave birth to the company under the name Hero Honda.
As mentioned, Brijomohan started manufacturing bicycle parts after getting the license from the Government. Soon after, the company got the status of ‘Large Scale Unit’ by making an annual production capacity of 7,500 cycles at that time. The company had grown to be the biggest bicycle manufacturer in India. In 1986, Hero Cycles was listed as the biggest bicycle manufacturer worldwide in the Guinness Book of Records.
After the success of Hero Cycles, Brijmohan decided to establish a two-wheeler company called Hero Majestic Company. Right after the establishment, the company started manufacturing Majestic scooters and mopeds.
Brijmohan entered into a contract with Honda, the largest automaker in Japan, in 1984. This was the beginning of a great partnership as the company set up a factory in Dharuhera, Haryana, alongside Honda. As a result of this, the first Hero Honda motorcycle, ‘CD 100’, hit the market on April 13, 1985.
By 2002, 16,000 motorcycles were produced on a daily affair and about 8.6 million Hero Honda motorcycles had been sold. This is how the company grew by reaching the hearts of millions of people.
Fate took its turn when Hero Group decided to split its ways from the Honda of Japan. The Munjal brothers decided to rename the company Hero MotoCorp in 2011. Even after the renaming, it was reported that the Hero Group would pay out royalties to Honda Company so that it can keep using its name Hero Honda till 2013.
The split was planned in a phased manner. The decision was planned in a way that – Honda’s 26% ownership investment in the JV Hero Honda would be acquired by The Hero Group.
As per reports, in locations of Nepal, Bangladesh, and Sri Lanka, Hero Group was not entitled to export under the joint venture; the termination would allow Hero Group to resume exporting. The Hero Group has always gotten its technology from its Japanese partner Honda.
After going through a lot of rift and differences between the two companies, Hero Group is now free and acts as an independent company. The company is also able to export to other countries like Latin America, Africa, and West Asia.
Hero MotoCorp – Mission and Vision
Hero MotoCorp’s goal now is to become the top two-wheeler firm worldwide by setting standards for design, functionality, and technology.
The company is very clear about its vision and that is “Be the Future of Mobility”.
The mission of Hero MotoCorp is to “create, collaborate, and inspire”. The company is quite firm about its mission to create and set benchmarks in the industry and inspire its co-workers to push the company to a global level.
Hero MotoCorp – Name, Tagline, and Logo
Previously, Hero MotoCorp was named Hero Honda Motors Limited after exiting the joint venture with Honda of Japan in 2011.
The logo of the newly formed brand was designed by the British firm Wolff Olins.
Hero MotoCorp’s new tagline says, ‘Hum Main Hai Hero’ which means ‘There is a Hero in Every one of us’.
Hero MotoCorp – Business Model
Hero MotoCorp is a public company with a market capitalisation of ₹59,600 crores (US$7.8 billion) as of 2021.
Hero MotoCorp has a business-to-consumer (B2C) model as they manufacture motorcycles and scooters along with their parts.
The company is mostly involved in the design and development of technologically cutting-edge motorbikes and scooters for users worldwide.
Hero MotoCorp leads the path in the manufacturing world: and aims to be ‘A Global Brand’
It boasts of having over 100 million customers worldwide and persists to be on the top by bringing socio-economic progress and empowerment through its range of products and services.
Hero MotoCorp Key Products are:
Motorcycles
- Xtreme 200S
- Xtreme 160R
- Xpulse 200T
- Xpulse 2004V (Latest Edition)
- Xpulse 200
- Splendor+ Xtec
- Splendor Ismart
- Splendor+ Black and Accent
- Splendor+
- Passion Xtec
- Passion Pro
- Super Splendor
- Hf Deluxe
- Hf 100
- Glamour
- New Glamour
- Glamour Xtec
Scooters
- Pleasure+ Xtec
- Maestro Edge 125
- Maestro Edge 110
- Destini 125 Xtec
- Destini 125
Hero MororCorp has launched ‘Vida’-, which is an in-house electric vehicle brand of the company. In March 2022, the brand unveiled the electric vehicle to focus more on ‘Green’ sustainability.
The Chairman and CEO of Hero MotoCorp, Dr. Pawan Munjal says,
“Vida means life, and the brand’s sole purpose is to create a positive impact on the world and take us forward in meaningful ways. We believe the name is perfect for what we are building for our children and the next generation.”
The brand has also come up with an official Hero merchandise business.
Hero MotoCorp also indulges in providing service and maintenance for their customers. The company takes good care of its customers’ two-wheeler repair and maintenance through its extensive network of more than 6000 dedicated dealers and service outlets located across the country. The company offers continuous work to uphold its mandate of providing the best level of customer satisfaction.
The company also has workshops that have well-defined standards for servicing two-wheelers, a fully functional infrastructure, a staff of highly skilled service technicians, and quality precision equipment and pneumatic tools.
Hero MotoCorp provides free services for all its two-wheelers. However, for customers to use these free services they have to use them within the allotted time frame or mileage range, whichever is shorter, starting from the date of purchase.
Once the customers have used the free services, they have to continue using premium services following the suggested service schedule after the expiration of the free services or the period during which they were offered.
The foundation of Hero MotoCorp’s manufacturing facilities is sustainable development, as the company is committed to supporting the highest environmental standards.
The company has eight globally benchmarked manufacturing facilities, including six in India and one each in Colombia and Bangladesh.
Hero MotoCorp – Revenue Model
Hero MotoCorp saw a gain of profit of Rs 885 crore in the January-March quarter during the 2020-21 fiscal period in their annual report. However, its revenue from operations saw a decline to Rs 7,497 crore from Rs 8,690 crore in the fourth quarter of the fiscal year 2021. There was also a decline in their net income, which is now ₹2,982 crore (US$390 million).
Hero MotoCorp – Investments and Partnerships
Hero MotoCorp has the majority of investments in synergies. The company has partnered with International and national brands like:
- Iconic American motorcycle brand Harley-Davidson
- World’s largest battery-swapping network and EV maker Gogoro Inc.
- Bharat Petroleum Corporation Limited (BPCL), India’s leading fuel distribution network.
At a Venture Funding round, Hero Motorcorp recently invested Rs 550 crore in Ather Energy on September 4, 2023.
Hero MotoCorp – Acquisitions
Hero MotoCorp has acquired a UK-based transmission technology firm called Hewland Engineering. The details of the sum are still undisclosed.
With this acquisition, Dr. Pawan Munjal says, “This investment represents a significant strategic inflection point for us in the transmission product segment. By combining Hewland’s comprehensive design and analysis capabilities with our ability to support high-volume manufacturing we are strongly positioned to offer full-stream transmission solutions to global OEMs and Tier One suppliers.”
Hero MotoCorp – Challenges Faced
Although Hero MotoCorp is a leading manufacturer of two-wheelers, it still poses tough competition from other competitors both in international and national markets.
One of the biggest challenges for the company is to come up with new products with unique designs. As per a report, Hero’s weakness lies in its lack of innovation that is, most of its products are designed similarly with no knack for new features or designs.
Hero MotoCorp – Competitors
The automotive industry, especially, the two-wheeler segment is one of the most expanding industries today.
The following are the top competitors of Hero MotoCorp are:
- Baja Auto
- TVS Motor Company
- Honda motorcycles and scooters in India
- Atul Auto
Hero MotoCorp – Awards and Achievements
Hero MotoCorp has received various awards and recognition.
Awards won by the company in the last few years are:
2020
- Motorcycle of the year- Exhibit Auto Tech Awards 2020
- Tourer Bike of the Year(up to 250cc) – Flywheel Auto Awards 2020
- Business Leader of the Year Awards
- Scooter of the year – Bike India
- Bike of the Year up to 200 cc – Bike India
2018
- Best launch – Two-wheeler at the CNB Auto Expo Awards for Excellence 2018
- Highest Ranked Executive Motorcycle In Initial Quality – Hero Super Splendor
- Bikesport award of the year – Times Auto Awards
2017
- Hero Glamour – Commuter Motorcycle Of The Year – NDTV Car and Bike awards 2017
- Indian MNC of the Year by All India Management Association (AIMA)
- Manufacturer of the year – NDTV Car and Bike awards 2017
Hero MotoCorp – Advertisements and Social Media Campaigns
In October 2021, Hero MotoCorp launched an ad with a song, “Khushiyon Ko Do Raftaar”. The aim was to spread the message that the customers love to take that extra mile to make someone happy and that Hero MotoCorp is proud to be its customer’s trusted partner.
Hero MotoCorp – Future Plans
Even after having launched new products and taking the green initiative seriously, Hero MotoCorp is doing quite well in the industry by maintaining its status of World No.1.
Here’s what the CEO of Hero MotoCorp says, “This year will see Hero MotoCorp claim its position in the exciting clean mobility space in a bold avatar. Hero MotoCorp will transform its leadership in the internal combustion engine (ICE) market into the electric vehicle space globally.”
The company has also shared that in the FY 2022-23, the company’s recent launch of ‘Vida’ its first in-house Electric Vehicle (EV) will break the market shortly.
The company will develop and build a line-up of EV products, to offer mobility solutions to a diverse customer base around the globe. Hero MotoCorp will continue to invest in capability building, both in-house and through partnerships with global players, to capitalise on their unique strengths, and pave the way for expeditious adoption of sustainable mobility solutions over the coming years.
The company also plans to develop mobility solutions for a broad consumer base around the world. They wish to capitalise on their specific strengths and open the door for a swift uptake of sustainable mobility solutions over the coming years and will continue to engage in capability creation, both internally and through collaborations with global actors.
FAQs
Who is the founder of Hero MotoCorp
Brijmohan Lall Munjal founded Hero MotoCorp in 1984.
What is the revenue of Hero MotoCorp?
The revenue of Hero MotoCorp is US$4.2 billion as of 2021.
What is the business model of Hero MotoCorp?
Hero MotoCorp is a two-wheeler vehicle manufacturing company that manufactures two-wheelers like bikes and scooters.
