Changes for page Hero MotoCorp

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2 2  {{toc/}}
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4 4  
5 -= Paragraph 1 =
5 += Overview =
6 6  
7 -Overview
7 +Hero MotoCorp (NSE:HEROMOTOCO) is the dominant market leader in India – the world’s largest two-wheeler market – with over 50% share in the domestic motorcycle market.{{footnote}}https://www.heromotocorp.com/en-in/about-us.php{{/footnote}}
8 8  
9 -
10 -Hero MotoCorp (NSE:HEROMOTOCO) is the dominant market leader in India – the world’s largest two-wheeler market – with over 50% share in the domestic motorcycle market.
11 -
12 -[[https:~~/~~/www.heromotocorp.com/en-in/about-us.php>>url:https://www.heromotocorp.com/en-in/about-us.php]]
13 -
14 14  With innovation at the core of its philosophy, the New Delhi (India) headquartered Hero MotoCorp has been at the forefront of designing and developing technologically advanced motorcycles and scooters for customers around the world. It became the world’s largest two-wheeler manufacturer in 2001, in terms of unit volume sales in a calendar year, and has maintained the coveted title for the past 18 consecutive years.
15 15  
16 -
17 17  With over 90 million satisfied customers across the globe, it continues to champion socio-economic progress and empowerment through its range of products and services.
18 18  
19 -
20 20  Led by Dr Pawan Munjal, Chairman, Hero MotoCorp, it has taken rapid strides to expand its presence to 37 countries across Asia, Africa, and South & Central America. Hero MotoCorp is a truly global enterprise with a workforce that comprises of people from different nationalities including India, Bangladesh, Colombia, Germany, Austria, Japan, and France.
21 21  
15 += Manufacturing Facilities =
22 22  
23 -Manufacturing Facilities
24 -
25 -
26 26  Hero MotoCorp’s manufacturing facilities are based on the core principle of sustainable development, as the Company remains committed to maintaining the highest ecological standards.
27 27  
28 -
29 29  Hero MotoCorp has seven globally benchmarked manufacturing facilities, including five in India and one each in Colombia and Bangladesh.
30 30  
31 -
32 32  In India, the facilities are located at Dharuhera and Gurugram in the northern Indian state of Haryana; at Haridwar in the hill state of Uttarakhand; at Neemrana in the northern state of Rajasthan, and at Halol in the coastal state of Gujarat in western India. The facility in Colombia is located at Villa Rica in Cauca province and at Jessore in Bangladesh, situated in the southwestern region of the country.
33 33  
34 -
35 35  It became the only Indian two-wheeler company to set up a manufacturing base in Latin America when it started operations at its manufacturing facility at Colombia in 2016.
36 36  
37 -
38 38  Hero MotoCorp currently has an annual combined production capacity of around 9 million units of two-wheelers.
39 39  
40 -
41 41  The Company’s manufacturing facilities at Neemrana and Halol have been aptly called the ‘Garden Factories’, for their various measures, which have redefined green manufacturing.
42 42  
43 -
44 44  The new manufacturing facility of Hero MotoCorp is coming up at Chittoor, in the southern Indian state of Andhra Pradesh.
45 45  
31 += Research and Development =
46 46  
47 -
48 -Research and Development
49 -
50 50  The state-of-the-art, world-class Center of Innovation and Technology (CIT) at Jaipur, in the northern Indian state of Rajasthan, is the global hub of Hero’s Research and Development.
51 51  
52 -
53 53  The CIT has more than 700 engineers from across the world that are engaged in developing the new range of mobility solutions for customers across the globe. The sprawling one-of-its-kind, world-class R&D Center houses the best global facilities for product design & development, testing, and validation under one-roof.
54 54  
55 -
56 56  With an objective of building a robust R&D ecosystem that is spread across global geographies, Hero MotoCorp has also set-up the ‘Hero Tech Center Germany GmbH’ at Stephanskirchen, near Munich. A wholly owned subsidiary of Hero MotoCorp, the Hero Tech Center in Germany focuses on the development of new vehicle concepts and future technologies in close cooperation with the teams at CIT in Jaipur.
57 57  
58 -
59 59  As part of its technology ecosystem, Hero MotoCorp also engages with top global design and technology houses from across the world, including Italy, Spain, and Thailand.
60 60  
61 -
62 62  In keeping with the diverse demography of customers in different geographies of the world, the Company is developing market-specific products to suit every customer need.
63 63  
43 += Product portfolio =
64 64  
65 -Product portfolio
45 +The company has wide range of two wheelers.{{footnote}}https://www.heromotocorp.com/en-in/the-bike/two-wheeler-motorcycles.html{{/footnote}}
66 66  
67 -The company has wide range of two wheelers
47 +* Xtreme 160R BS6
48 +* Xpulse 200 BS6
49 +* Passion Pro BS6
50 +* Splendor iSmart BS6
51 +* Glamour BS6
52 +* Splendor+ BS6
53 +* HF Deluxe BS6
54 +* Super Splendor BS6
55 +* Destini 125 BS6
56 +* Maestro Edge 125 BS6
57 +* Pleasure+ BS6
58 +* Xpulse 200T
59 +* Xtreme 200S
68 68  
69 -[[https:~~/~~/www.heromotocorp.com/en-in/the-bike/two-wheeler-motorcycles.html>>url:https://www.heromotocorp.com/en-in/the-bike/two-wheeler-motorcycles.html]]
61 += Business Overview =
70 70  
63 +FY 2018-19 was a roller-coaster year for the two-wheeler industry. After a healthy first half, the second half turned into a rough ride on account of insurance price increase, liquidity crunch and agriculture sector slowdown. Overall, the two-wheeler industry grew by a moderate 5% compared to the previous year (FY 2017-18). The two-wheeler industry volumes for full year were 21.17 million units. During the year, ABS/CBS compliance was implemented with effect from April 1, 2019 and compliant variants were launched through the second half of the fiscal year.{{footnote}}https://www.heromotocorp.com/en-in/uploads/Annual_Reports/pdf/20190715054601pdf266.pdf{{/footnote}}
71 71  
72 -Xtreme 160R BS6
73 -
74 -Xpulse 200 BS6
75 -
76 -Passion Pro BS6
77 -
78 -Splendor iSmart BS6
79 -
80 -Glamour BS6
81 -
82 -Splendor+ BS6
83 -
84 -HF Deluxe BS6
85 -
86 -Super Splendor BS6
87 -
88 -Destini 125 BS6
89 -
90 -Maestro Edge 125 BS6
91 -
92 -Pleasure+ BS6
93 -
94 -Xpulse 200T
95 -
96 -Xtreme 200S
97 -
98 -
99 -Business Overview
100 -
101 -FY 2018-19 was a roller-coaster year for the two-wheeler industry. After a healthy first half, the second half turned into a rough ride on account of insurance price increase, liquidity crunch and agriculture sector slowdown. Overall, the two-wheeler industry grew by a moderate 5% compared to the previous year (FY 2017-18). The two-wheeler industry volumes for full year were 21.17 million units. During the year, ABS/CBS compliance was implemented with effect from April 1, 2019 and compliant variants were launched through the second half of the fiscal year.
102 -
103 -
104 104  Motorcycles, which contribute to64% of the two-wheeler industry, grew by 8% with volumes of 13.59 million units. In the segments within motorcycles, following trends were seen in FY2018-19.
105 105  
106 -
107 107  The contribution of scooters to the overall industry volumes declined from 33.2% to 31.6%during the year. The segment growth remained flat due to multiple reasons including an increase in overall cost of ownership and low growth in urban India. 100-110ccscooter segment declined by 9% in FY 2018- 19, while 125cc segment grew by 57%. The scooter segment volumes stood at 6.70 million units.
108 108  
109 -
110 110  Mopeds contributed 4% to the two-wheeler industry. The moped segment volumes stood at 0.88million units, a marginal growth of 2% over the previous year.
111 111  
112 -
113 113  Hero MotoCorp Ltd. recorded its highest ever annual domestic sales of 7.61 million units during the fiscal year 2018-19, which is 2 million units more than the nearest competitor. The Company registered this growth through a strategic approach, continuous focus on lead management, digitization and customer engagement activities, while weathering the challenges of insurance price increases and liquidity crunch in the second half of the year.
114 114  
73 +**Brand Milestones**
115 115  
116 -Brand Milestones
75 +* Splendor continued to be the Number 1 motorcycle brand made in India and entered the exclusive 3 million units-in-a-year club
76 +* HF Deluxe crossed 2 million units-in-a-year milestone
77 +* Destini 125 became the fastest growing 125cc scooter giving it ~~20% market share in the aforementioned segment
117 117  
118 -• Splendor continued to be the Number 1 motorcycle brand made in India and entered the exclusive 3 million units-in-a-year club
79 +**Hero MotoCorp’s Performance by Sub-segments:**
119 119  
120 -HF Deluxe crossed 2 million units-in-a-year milestone
81 +* Entry Segment: Hero MotoCorp’s volume grew by 15% over the previous year. The market share in this segment stood at56.4%
82 +* Deluxe 100cc Segment: Hero MotoCorp’s volume grew by 8% over the previous year. The market share in this segment stands at a solid 80.8%, a gain of another 2.7%over the previous year
83 +* Deluxe 125cc Segment: The market share in this segment is at 56.2%, which is similar to the previous year despite a decline of 6% in volumes
84 +* Premium (150cc+) Segment: The market share in this segment stood at 1.4%, a loss of 1.1%over the previous year. With the launch of new models in this segment, the Company expects to drive market share recovery in FY2019-20
85 +* Scooter Segment: The market share in this segment stood at 10.7%. With the launch of two new scooters, Maestro Edge 125 and the new Pleasure, the Company is focussed on gaining market share in this segment.
121 121  
122 -Destini 125 became the fastest growing 125cc scooter giving it ~~20% market share in the aforementioned segment
87 +== Key Business Drivers ==
123 123  
124 -
125 -Hero MotoCorp’s Performance by Sub-segments:
126 -
127 -•
128 -
129 -Entry Segment: Hero MotoCorp’s volume grew by 15% over the previous year. The market share in this segment stood at56.4%
130 -
131 -Deluxe 100cc Segment: Hero MotoCorp’s volume grew by 8% over the previous year. The market share in this segment stands at a solid 80.8%, a gain of another 2.7%over the previous year
132 -
133 -Deluxe 125cc Segment: The market share in this segment is at 56.2%, which is similar to the previous year despite a decline of 6% in volumes
134 -
135 -Premium (150cc+) Segment: The market share in this segment stood at 1.4%, a loss of 1.1%over the previous year. With the launch of new models in this segment, the Company expects to drive market share recovery in FY2019-20
136 -
137 -Scooter Segment: The market share in this segment stood at 10.7%. With the launch of two new scooters, Maestro Edge 125 and the new Pleasure, the Company is focussed on gaining market share in this segment.
138 -
139 -
140 -Key Business Drivers
141 -
142 -
143 143  Consumer Experience: Customer experience is not only the lead indicator of measuring customer loyalty, identifying unhappy customers, reducing churn and increasing revenue; it is also a key point of differentiation that helps attract new customers in competitive business environments. Hence, it is critical to measure and manage customer experience on regular basis.
144 144  
145 145  Hero Happiness Score, a unique initiative to drive and measure in-store consumer experience, increased significantly with the help of various customer-oriented process enhancements at dealerships.
... ... @@ -146,17 +146,14 @@
146 146  
147 147  Some of these initiatives include service camps, pick up and drop facilities in select markets, automation at workshops to create a seamless and better experience for the customers.
148 148  
149 -
150 150  Expansion of Distribution Network and Institutional Sales: Growth in two-wheeler market propelled the organization to expand its network. Institutional Sales is a focus area for Hero MotoCorp and the Company has sold 1.43million units in this category. Also, focussed on large corporates and logistics, delivery service businesses.
151 151  
97 +== Global business ==
152 152  
153 -Global business
154 -
155 155  Expansion of Distribution Network and Institutional Sales: Growth in two-wheeler market propelled the organization to expand its network. Institutional Sales is a focus area for Hero MotoCorp and the Company has sold 1.43million units in this category. Also, focussed on large corporates and logistics, delivery service businesses.
156 156  
101 +**South Asia**
157 157  
158 -South Asia
159 -
160 160  Hero MotoCorp has presence in key South Asian markets including Bangladesh, Nepal and Sri Lanka. In all countries, the market is moving towards premium motorcycle segment, with34%in Bangladesh, 39% in Nepal and 17% in Sri Lanka. Increasing popularity of scooters is another trend in these regions with 34% in Nepal and 65% in Sri Lanka, with market slowly shifting to stylish 125cc scooters.
161 161  
162 162  Hero MotoCorp crossed 100,000unit volumes in retail sales in Bangladesh for the first time in FY2018-19 registering a growth of 38%. Overall growth in the Asian region was 12%.
... ... @@ -163,65 +163,44 @@
163 163  
164 164  To further increase brand equity and showcase its product and technology capabilities, the Company participated in Auto Shows across countries in the region (Kathmandu, Colombo and Dhaka). In the Dhaka Auto Show in Bangladesh, three new products were displayed: Passion XPRO, iSmart 110+ and Maestro Edge. A unique retail financing scheme ‘Aamar Hero’ that was launched nationally in Bangladesh in a phased manner has been showing very promising results.
165 165  
109 +**Africa**
166 166  
167 -Africa:
168 -
169 169  Currency and crude oil prices stabilized in Nigeria which led to the recovery of demand with industry growth of 60% for the two-wheeler industry. Hero MotoCorp continued its network expansion and developed new value proposition for customers, which should help in good stead in FY2019-20. The Company also re-energized core east African markets of Uganda and Tanzania with strong and committed distributor partners.
170 170  
113 +**Middle East**
171 171  
172 -Middle East:
173 -
174 174  In Turkey, the industry dropped by ~~28% due to currency depreciation and economic recession. Hero MotoCorp launched Euro-IV compliant products in the market, which have been received well by customers.
175 175  
117 +**Latin America:**
176 176  
177 -Latin America:
178 -
179 179  The Latin America region grew 38% in terms of Company dispatches in FY2018-19. Countries such as Colombia, Bolivia and Ecuador showed growth in excess of 100%, while the CAC cluster (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua)declined by 29%.
180 180  
121 += Financial highlights =
181 181  
182 -Financial highlights
123 +On Feb 06, 2020 the company reported 14.47 per cent year-on-year (YoY) rise in standalone net profit at Rs 880.41 crore for the quarter ended December 31. The two-wheeler major had posted a profit of Rs 769.10 crore in the same period last year.{{footnote}}https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr{{/footnote}}
183 183  
184 -
185 -On Feb 06, 2020 the company reported 14.47 per cent year-on-year (YoY) rise in standalone net profit at Rs 880.41 crore for the quarter ended December 31. The two-wheeler major had posted a profit of Rs 769.10 crore in the same period last year.
186 -
187 -[[https:~~/~~/economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr>>url:https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q3-results-profit-rises-14-to-rs-880-crore-firm-announces-rs-65-dividend/articleshow/73985665.cms?from=mdr]]
188 -
189 189  Total income, however, declined by 10.84 per cent to Rs 7178.94 crore. The company sold 15,40,876 vehicles during the quarter against 17,98,905 in the corresponding quarter last year.
190 190  
191 191  The company announced a dividend of Rs 65 per share on face value of Rs 2 each.
192 192  
193 -
194 194  Niranjan Gupta, Chief Financial Officer (CFO), Hero MotoCorp, said, “The two-wheeler industry continues to face challenges amid an overall economic slowdown. Early indicators, such as a positive Rabi crop, augur well for the rural economy, which in turn is likely to help the industry.”
195 195  
196 -
197 197  He added that the slew of measures announced by the finance minister as part of Budget would also go a long way in reviving the economy. However, it will take some time for the two-wheeler industry to see a sustained recovery. Hero MotoCorp expects to see a positive turnaround in the second half of next financial year.
198 198  
199 -
200 200  During the third quarter, Hero MotoCorp launched India’s first BS-VI motorcycle, the Splendor iSmart and then followed it with the first BS-VI motorcycle in the entry segment - HF-Deluxe.
201 201  
202 -
203 203  “The company is geared-up to transition its entire product range to the new emission norms well before the regulatory deadline and plans to stop all BS IV production by mid-February,” Hero MotoCorp said in a release.
204 204  
137 += Recent Developments =
205 205  
139 +**On May 4 2020**,  Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, is rapidly gearing up to commence operations, as per the guidelines stipulated by the Ministry of Home Affairs of the Government of India.{{footnote}}https://www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf{{/footnote}}
206 206  
207 -Recent Developments
208 -
209 -
210 -On May 4 2020,  Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, is rapidly gearing up to commence operations, as per the guidelines stipulated by the Ministry of Home Affairs of the Government of India.
211 -
212 -[[https:~~/~~/www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf>>url:https://www.heromotocorp.com/en-in/uploads/media/pressrelease_pdf/20200504063245-pdf-304.pdf]]
213 -
214 214  Hero MotoCorp proactively halted operations across its manufacturing facilities and made
215 215  
216 216  WFH mandatory for all its offices from March 22, 2020.
217 217  
145 +**On May 11 2020,** Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement. In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets.{{footnote}}https://www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html{{/footnote}}
218 218  
147 += References =
219 219  
220 -On May 11 2020, Around 10,000 units of motorcycles and scooters have already been sold since the reopening of these customer touch-points, Hero MotoCorp said in a statement. In April, there were no vehicles manufactured and dispatched to dealers. The company reported zero sales across domestic and overseas markets.
221 -
222 -[[https:~~/~~/www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html>>url:https://www.business-standard.com/article/markets/hero-motocorp-gains-6-after-claims-10-000-sales-in-a-week-120051100301_1.html]]
223 -
224 -
225 -
226 -
227 -References
149 +{{putFootnotes/}}
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