This is the story of what is today, the largest two-wheeler manufacturer in the world
What if we told you that the world’s biggest two-wheeler manufacturer hails from India? Well, it’s true, and that manufacturer is none other than *cues drumroll* Hero MotoCorp.
Curious to know how it got to the top? Lucky for you, we’re taking a deep dive into the Indian company here, so read on!
The Beginning
Hero first started out as a cycle company and stepped into the petrol two-wheeler market only after joining hands with Honda
Hero initially started out as a cycle company called Hero Cycles, headed by the Munjal family. And it entered the ICE two-wheeler industry only after joining hands with Japanese giant Honda in 1984, forming the legendary joint venture Hero Honda.
Their legendary JV Hero Honda gave birth to many popular offerings and became the world’s largest two-wheeler company
Both parties, Hero and Honda, owned a 26 percent stake in this joint venture and while Hero was in charge of production and sales, Honda provided Hero with its motorcycle technology.
This joint venture went on for nearly 26 years and birthed numerous motorcycles in the 1980s which became very popular, thanks to their excellent fuel efficiency and low cost. Ultimately, it was this popularity that led Hero Honda to become the world’s largest two-wheeler manufacturer in 2001.
Why Did Hero & Honda Separate?
Hero MotoCorp went on to set up a manufacturing facility in Bangladesh, investing Rs 250 crore in the project
Even though this was an extremely successful joint venture, it wasn’t all smooth sailing and the two companies decided to part ways in 2010. There were a number of reasons which led to the separation.
Soon after the split in 2010, Hero announced its new brand personality in 2011
- First, the joint venture prohibited Hero from exporting its products to international markets (except Nepal, Bangladesh, and Sri Lanka), and the termination meant Hero could finally look into expanding its horizons.
- The second contributing factor was Honda’s reluctance to fully share its technology with Hero even though the company had signed a 10-year contract to do so.
- And finally, for Honda, a major bother was Hero’s denial to merge Hero Honda’s spare parts with Honda’s new Indian subsidiary, Honda Motorcycle & Scooter India, commonly known as HMSI.
Owing to all this, the two companies cut short the joint venture, calling it quits in 2010. During the split, Hero bought Honda’s 26 percent stake in Hero Honda for around Rs 6,400 crore in a phased manner, thus increasing Hero’s stake to 52 percent.
Welcome, Hero MotoCorp
Today, we’ll be taking a look into how Hero MotoCorp became the world’s largest manufacturer
Soon after the split, Hero announced a new brand identity, Hero MotoCorp, for its company in July 2011.
Fast Fact: Hero MotoCorp’s new logo reveal took place on the same day as India and England’s third test match in 2011
And roughly three years later, the company signed a joint venture with Bangladesh’s Nital-Niloy group, investing Rs 254 crore to set up a new manufacturing plant in Bangladesh.
Which Companies Does Hero MotoCorp own?
Apart from its own projects, Hero has a 36% stake in popular EV company, Ather Energy
Apart from its own projects, Hero MotoCorp has had a few investments in other two-wheeler companies as well.
The company was a 49.2 percent shareholder in the US-based racing company, Erik Buell Racing. However, this wasn’t all that successful, as Erik Buell Racing filed bankruptcy in 2015.
Hero MotoCorp also invested a massive Rs 205 crore in the popular Indian EV startup, Ather Energy, acquiring a 32.31 percent stake in 2016. Thanks to Ather’s success, Hero further invested another Rs 130 crore in Ather Energy in 2018, increasing its stake to 34.58 percent.
And Hero MotoCorp also handles sales and distribution of Harley-Davidson bikes in India
Hero MotoCorp is also one of the few Indian companies that have taken part in the gruesome Dakar Rally
Most recently, though, Hero lent a helping hand to Harley-Davidson which was on course to exit the Indian market. Under the agreement, Hero MotoCorp will sell and service Harley-Davidson bikes in India.
Hero even set a separate vertical to manage sales, distribution, and service of Harley-Davidson bikes, essentially helping the American giant make a comeback here.
The Present & The Future
Today, HERO Moto is a household name in the country. This is the story of one of the most successful two-wheeler makers in the country
Hero MotoCorp is currently headed by CEO, Managing Director, and Chairman Mr. Pawan Munjal and the company has five manufacturing plants in India, based at Dharuhera, Gurugram, Neemrana, Haridwar, and Halol. Meanwhile, Hero MotoCorp company is headquartered in the national capital, New Delhi.
With around 15 two-wheelers in its BS6 portfolio, Hero MotoCorp is currently the only two-wheeler company in the world to produce over 10 crore two-wheelers. Some of its most popular two-wheelers are the Hero Splendor, Passion, Glamour, and Hero’s only ADV, the XPulse 200.
Curious to know what lies in Hero’s future? Well, swipe up to find out.
In related news, Hero recently updated the XPulse 200 with a 4-valve setup, in order to make it a more highway-friendly bike
And Hero’s foothold in the industry is only bound to increase with time. Why you ask? Well, Hero MotoCorp is soon planning to set foot in the EV market by introducing a new division, specifically focusing on Hero electric two-wheelers.
Speaking of electric two-wheelers, if you’re planning to get one, check out the top 10 electric scooters you can buy in India right now.
Keyword: Hero MotoCorp History