About Hero Motocorp: Hero MotoCorp Limited, formerly known as Hero Honda, is a New Delhi-based multinational manufacturer of motorcycles and scooters. The business has a market share of roughly 37.1% in the two-wheeler industry in India and is one of the biggest two-wheeler manufacturers in the world.
The company had a market value of 59,600 crore (US$7.5 billion) as of May 27, 2021. As a joint venture between Honda of Japan and Hero Cycles of India, Hero Honda began operations in 1984. In June 2012, Hero MotoCorp approved a plan to combine the automaker with the investment division of its parent company Hero Investment Pvt. Ltd. This choice was made 18 months after the company’s breakup with Hero Honda.
History Hero Motocorp
The Munjal brothers’ flagship company, Hero Cycles Ltd., uses the brand name “Hero.” Hero Honda Motors Limited, a joint venture between the Hero Group and Honda Motor Company, was founded in Dharuhera, India, in 1984. A combined 26% of the business was owned by the Honda group and the Munjal family.
The business introduced motorcycles in the 1980s that were well-liked in India due to their affordability and fuel efficiency. Since its inception, the company has grown at a double-digit rate thanks in large part to a successful advertising campaign with the slogan “Fill it – Shut it – Forget it.”
Growth Hero Motocorp
The company surpassed all rivals to become the largest two-wheeler manufacturer in both India and the world in 2001. It continues to hold the top spot in the world industry. For nearly 26 years (1984-2010), Hero Motocorp’s (previously Hero Honda) motorcycles used technology that originated with Honda in Japan.
By December 2010, the Hero Honda Group’s board of directors had decided to gradually dissolve the joint venture between Honda of Japan and Hero Group of India. Honda’s 26% ownership investment in the JV Hero Honda would be acquired by The Hero Group.
Except for Nepal, Bangladesh, and Sri Lanka, Hero Group was unable to export under the joint venture; the termination would allow Hero Group to resume exporting.
Future of Hero Motocorp
The Hero Group has always gotten its technology from its Japanese partner Honda. Honda left the joint venture by granting the Munjal family, which owned a 26% share in the business, through a series of off-market deals.
Honda quit Hero Honda at a discount and received about 6,400 crore (equivalent to 120 billion or US$1.5 billion in 2020) for its interest in order to concentrate only on its own, completely owned two-wheeler business, Honda Motorcycle and Scooter India (HMSI).
After the market closed on December 16, 2010, Honda’s equity was discounted by between 30% and 50% from its existing market value.