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61	61	= Business Overview =
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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}}
	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.
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	65	+
65	65	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.
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	68	+
67	67	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.
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	71	+
69	69	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.
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	74	+
71	71	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.
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73		-**Brand Milestones**
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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
	78	+Brand Milestones
78	78
79		-**Hero MotoCorp’s Performance by Sub-segments:**
	80	+• Splendor continued to be the Number 1 motorcycle brand made in India and entered the exclusive 3 million units-in-a-year club
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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.
	82	+HF Deluxe crossed 2 million units-in-a-year milestone
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87		-== Key Business Drivers ==
	84	+Destini 125 became the fastest growing 125cc scooter giving it ~~20% market share in the aforementioned segment
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	86	+
	87	+Hero MotoCorp’s Performance by Sub-segments:
	88	+
	89	+•
	90	+
	91	+Entry Segment: Hero MotoCorp’s volume grew by 15% over the previous year. The market share in this segment stood at56.4%
	92	+
	93	+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
	94	+
	95	+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
	96	+
	97	+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
	98	+
	99	+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.
	100	+
	101	+
	102	+Key Business Drivers
	103	+
	104	+
89	89	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.
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91	91	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.
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93	93	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.
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	111	+
95	95	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.
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97		-== Global business ==
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	115	+Global business
	116	+
99	99	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.
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101		-**South Asia**
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	120	+South Asia
	121	+
103	103	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.
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105	105	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%.
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107	107	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.
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109		-**Africa**
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	129	+Africa:
	130	+
111	111	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.
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113		-**Middle East**
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	134	+Middle East:
	135	+
115	115	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.
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117		-**Latin America:**
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	139	+Latin America:
	140	+
119	119	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%.
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121		-= Financial highlights =
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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}}
	144	+Financial highlights
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	146	+
	147	+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.
	148	+
	149	+[[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]]
	150	+
125	125	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.
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127	127	The company announced a dividend of Rs 65 per share on face value of Rs 2 each.
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	155	+
129	129	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.”
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	158	+
131	131	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.
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	161	+
133	133	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.
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	164	+
135	135	“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.
136	136
137		-= Recent Developments =
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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}}
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	169	+Recent Developments
	170	+
	171	+
	172	+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.
	173	+
	174	+[[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]]
	175	+
141	141	Hero MotoCorp proactively halted operations across its manufacturing facilities and made
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143	143	WFH mandatory for all its offices from March 22, 2020.
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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}}
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147		-= References =
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	182	+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.
	183	+
	184	+[[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]]
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	188	+
	189	+References
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149	149	{{putFootnotes/}}