Hero Honda was the Indian motorcycle company formed in 1984 as a joint venture between Hero Cycles and Honda of Japan. It grew into India’s largest two-wheeler manufacturer and, after Honda sold its stake, became Hero MotoCorp Limited in 2011.
Hero Honda at a glance
| Formed | 1984, Dharuhera, India |
|---|---|
| Partners | Hero Cycles of India and Honda of Japan, 26% each |
| Slogan | “Fill it – Shut it – Forget it” |
| Milestone | largest two-wheeler maker in India, 2001 |
| Split announced | December 2010 |
| Honda’s exit | 26% stake sold for over ₹6,400 crore |
| Renamed | Hero MotoCorp Limited, 29 July 2011 |
| New identity | by Wolff Olins, revealed 9 August 2011 in London |
| Market share | about 30% of Indian two-wheelers, March 2024 |
| Munjal family stake | 34.75%, 2024 |
The record covers the Hero Honda brand; this page is based on the English Wikipedia article on Hero MotoCorp and describes the joint venture and the company it became.
History of the Hero Honda
The joint venture
Hero Honda started operations in 1984 as a joint venture between Hero Cycles of India and Honda of Japan, established as Hero Honda Motors Limited at Dharuhera. “Hero” was the brand name used by the Munjal brothers for their flagship Hero Cycles, and the Munjal family and Honda each owned 26% of the venture. During the 1980s the company introduced low-cost motorcycles in India and became known for the advertising campaign built on the slogan “Fill it – Shut it – Forget it”, which stressed fuel efficiency. In 2001 it became the largest two-wheeler manufacturing company in India.
The split
By December 2010 the board of directors had decided to terminate the joint venture in phases, with the Hero Group buying Honda’s 26% stake. Under the venture Hero could not export except to Bangladesh, Nepal and Sri Lanka, and the end of the tie-up opened international markets. Honda exited through a series of off-market transactions at a discount of 30 to 50% to the market value of its stake, receiving over ₹6,400 crore. The partners had differed for years: Honda was reluctant to share technology fully despite a ten-year technology agreement that expired in 2014, the Indian partner was uneasy about high royalty payments, and the Munjal family refused to merge Hero Honda’s spare parts business with Honda’s own Indian subsidiary. The family bought the stake through an overseas special purpose vehicle backed by bridge loans, later opened to private equity investors including Warburg Pincus, KKR, TPG, Bain Capital and the Carlyle Group.
Hero MotoCorp
The company was renamed Hero MotoCorp Limited on 29 July 2011. The design firm Wolff Olins developed the new brand identity and logo, revealed on 9 August 2011 in London to coincide with a cricket match between England and India. Hero could now export to Latin America, Africa and West Asia and use any supplier for its components. In April 2014 it announced a ₹254 crore joint venture with Bangladesh’s Nitol-Niloy Group; the plant started production in 2017 as HMCL Niloy Bangladesh Limited, 55% owned by Hero and 45% by Niloy Motors. Hero updated its 100 cc engine range for 110 cc bikes in 2014, except for the Hero Dawn.
Investments and plants
In July 2016 Hero MotoCorp acquired 49.2% of Erik Buell Racing, buying assets of the bankrupt American company for ₹18.2 crore, and in October 2016 it took 32.31% of the electric scooter start-up Ather Energy, raised to 34.58% by a further investment in 2018. The company has five manufacturing plants, at Dharuhera, Gurgaon, Neemrana, Haridwar and Halol, with a sixth being set up at Tirupati; together they can produce over 7.6 million two-wheelers a year. Its sales and service network has more than 6,000 dealerships and service points, and its customer loyalty programme, started in 2000 as the Hero Honda Passport Program, is now the Hero GoodLife Program. As of March 2024 Hero MotoCorp held about 30% of the Indian two-wheeler market, and the Munjal family’s 34.75% made it the biggest shareholder.
Design and features
- 1984 joint venture: Hero Cycles and Honda, with 26% each.
- “Fill it – Shut it – Forget it”: a slogan built on fuel economy.
- Market leader: the largest two-wheeler maker in India from 2001.
- A clean break in 2011: Honda sold its stake and the company became Hero MotoCorp.
- Wide reach: more than 6,000 dealerships and service points.
Hero Honda versions
- Hero Honda (1984–2011): the joint venture and its motorcycles.
- Hero MotoCorp (from 2011): the renamed company with a new identity by Wolff Olins.
- HMCL Niloy Bangladesh (from 2017): the Bangladeshi manufacturing joint venture.
The company’s best-known motorcycles include the Splendor, the Karizma and the CBZ; more models are in the Hero collection.
Sources
- Hero MotoCorp, English Wikipedia: history, split, renaming, plants, investments
