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 Highway
Cycles 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- Hero Honda emerges as the market leader in
2001 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.
2004
 HeroITES, a division of HeroCorporate Service Limited
hived off as a division of new company Hero
Management Service Limited.

HeroITES strengthens its relationship with

2005
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

Hero Group celebrates Golden Jubilee year since

2006
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 was
possible 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.''
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