Hero Honda – Investors

Hero Honda Motors Ltd, the 'World No. 1' two-wheeler company, today announced outstanding financial results for the first nine months (ending December 2002) of the FY 2002-03.

The company's Profit After Tax (PAT) for the nine-month period soared to Rs 432 crore, a growth of 39 per cent over Rs 310 crore in the corresponding period last year. The Profit Before Tax went up to Rs 664 crore from Rs 476 crore, registering a remarkable increase of 39 per cent.

The operating margin for the first nine months of the year was an impressive 15.54 percent, versus 13.47% in the corresponding period last FY.

The company's total turnover (sales turnover plus other income, net of excise) for the nine-month period grew to Rs 3946 crore, a growth of 21 percent over Rs 3254 crore in the corresponding period last year.

The company recorded a volume sale of 12,81,342 motorcycles during the nine-month period, registering a splendid jump of 25 per cent, as compared with sales volume during the first nine months of FY 2001-02 (10,26,102 units).

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., applauding the company's performance, said, "Our consistent effort to satisfy all our stakeholders, and their contribution fortified the company's No. 1 position. We would achieve our targets of $ 1 billion / Rs 5000 crore plus turnover for this financial year".

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, "Hero Honda has always held the reputation of an all-round performer. It is most pleasing to record consistent top & bottom line growth."

"Following years of leadership in the 100cc category, we introduced AMBITION, a 133cc motorcycle, this year, creating an all new motorcycle segment in the country. AMBITION - an optimal combination of style, power and fuel economy."

"Our next launch, a plus-200cc motorcycle, scheduled to be introduced in the first-half of 2003, is another strategic move into a new motorcycle segment, and would further strengthen the company's market leadership," he added.

Hero Honda today leads the Indian motorcycle market, offering in its range the most fuel-efficient motorcycles, Splendor and Dawn; the best-styled motorcycle, Passion; and an unplugged power motorcycle, CBZ. With its recent launch of AMBITION, in 2002, the company has pioneered a new segment of 'POWERFUeL' motorcycles. Hero Honda's product range also encompasses CD 100, CD100 SS, and Street Smart.

Hero Honda Motors' sales and service network, spread across the length and breadth of the country, includes over 700 Dealerships and Sales and Service Points. In addition, there are dealers' service extensions, taking the total number of service points across the country to over 1,200.

Hero Honda was also the first Indian two-wheeler manufacturer to introduce the two-year warranty on all its models, in the year 2001 - a mark not only of its faith in its own product, but its commitment to the customer.

Hero Honda's Passport Programme, with close to one million members, is one of the largest customer relationship programmes in India today.

Hero Honda's 'Ride Safe Programme', an initiative to promote safe riding, has now been implemented across the country, with special training events organized with the traffic police and SIAM.

Strengthening its association with Cricket, the company recently appointed India's emerging and, perhaps, the world's most promising cricket stars - Virender Sehwag, Harbhajan Singh, Mohammad Kaif, Yuvraj Singh and Zaheer Khan- as its brand ambassadors. The five players joined their captain Saurav Ganguly, Hero Honda's long-standing brand ambassador, to form Hero Honda's 'TEAM AMBITION'. Hero Honda is the official sponsor of the ICC Cricket World Cup 2003.

Rajiv Bakshi/ Sheetal Sadhu / Deepika Thapar
Corporate Voice Weber Shandwick
Tel: 6936834-6
Mobile: 98109-99796

Vivek Syal
Hero Honda Motors Ltd.
Tel: 6142451
Mobile: 98100-84481

Hero Honda
The Hindu, Saturday, February 22, 2003

Hero Honda Motors has reported a profit after tax of Rs 432 crore for the nine months ended December 31, 2002 an increase of 39 per cent over Rs 310 crore in the corresponding period last year. The profit before tax went up to Rs 664 crore from Rs 476 crore.

The total turnover for the nine-month period grew to Rs 3,946 crore, a growth of 21 percent over Rs 3,254 crore in the corresponding period last year.

The company recorded a volume sale of 12.81 lakh motorcycles during the nine- month period, registering a splendid jump of 25 per cent, as compared to 10.26 lakh units in the same period last year.

Indian Sports Academy launched
Indian Express, Wednesday, February 05, 2003

Their timing might be questionable since the world Cup cricket fever is on but it did not deter the country's legendary sportspersons to come forward for a common cause- to improve the lot of other sports and follow the success of cricket. Not ironically led by cricketer Kapil Dev, the august group - a total of 19 from various sports- included Milkha Singh, PT Usha, world billiard champion Michael Ferreira, veteran mountaineer Baichendri Pal, hockey player Pargat Singh and kabadi ace Shantaram Jadav as some of their founding members- the Indian Sports Academy was launched by former US Olympic champion Edwin Moses, who flew in from Germany in the wee hours.

Moses, who held the world record in 400 m hurdles for more than nine years is the chairman of the Laureus Sport for Good foundation which has 43 renowned sportspersons as members including Michael Jordon and Boris Becker.

The ISA, which is the Indian chapter of the Laureus Foundation, has promised to provide equal opportunity to everybody in sports and will reward genuine talent in the country. The body has already found a sponsor with Hero Honda and sports management group Percept D Mark is coordinating the establishment of the ISA.

The founding members stressed that the ISA was a non-political body and formed to serve the interest of sportspersons. Kapil, who is the chairman of the ISA and a founding member of the international foundation, hit the nail on the head when he said, "Indian sports is run by either politician or bureaucrat. But this academy is meant for sportspersons." Michael Ferreira felt that as a first step the academy would take up the case of genuine achievers. "The Arjun awards have lost their sheen. Our academy will nominate awards through free and fair body," he said.

The first Indian woman to summit Everest, Baichendri Pal said that "we will ensure that there is equal opportunity to everyone. From my own experience I know that people in backward areas lack confidence to take up sports though talent is not lacking."

Moses, called upon Kapil and the other founder member to make the academy work and help the underprivileged kids in the society to have a better future.

HISA launched
The Hindu, Wednesday, February 05, 2003

The Hero Indian Sports Academy (HISA), with Kapil Dev as its chairman and 19 other eminent sports personalities as its members, was launched here on Tuesday in the presence of one of the legends of athletics, Edwin Moses.

Moses, two- time Olympic champion in the 400m hurdles and Chairman of the Laureus World Sports Academy on the lines of which the HISA has been formed, was held up for a day at Frankfurt because of food poisoning, and made it here only late on Monday night.

He appreciated the efforts of the Hero Group in duplicating the World Sports Academy at the National level as was done in South Africa also.

The HISA will be selecting sportspersons to receive various awards, beginning this year. The awards function is expected to be held sometime in the last week of April. The focus of HISA's activities will, however, be related to the 'Sports for Good Foundation which Moses is expected to launch in Mumbai.

Moses advised the HISA members to leave their 'egos at the door' while giving proper direction to the academy. He said that it would be entirely up to the academy members to carry out any program that would be good for the sport from a social perspective under the Sports for Good foundation.

Mr. David Butler of Laureus, explained that the basic idea did not involve producing Olympic champions or promoting sports development since there were several agencies concerned with that task within each country.

The Sports for Good foundation has already launched several initiatives across the globe, primarily aimed at helping street children, slum-dwellers and drug-addicts engage themselves in recreational activities.

Kapil Dev said that the HISA had given sportspersons an opportunity to look after sportspeople while Mr. P.K. Munjal, Director, Hero Group said that the academy would focus on providing a better deal to the underprivileged children in Mumbai.

The HISA members are: Kapil Dev (Chairman), Milkha Singh (athletics), P.T. Usha (athletic) P.K. Banerjee (football), Michael Ferreira (Billiards), Pargat Singh (hockey). Jaidip Mukherjea (tennis), Khajan Singh (swimming) Dinesh Khanna (badminton), Eliza Nelson (women's hockey), Kamlesh Mehta (table tennis), Moraad Ali khan (shooting), Vikramjit Singh (golf), Diana Eduljee (women's cricket), Bachendri Pal (mountaineer), Premchand Degra (bodybuilding), Balbir Singh Bhatia (weightlifting), Praveen Thipsay (chess), Mehrwan Daruwalla (squash) and Shantaram Jadav (Kabaddi).

Brand: Hero Honda
Medium: Television
Economic Times, Wednesday, February 05, 2003

A clever ad which exploits, the now well- replayed scene of Saurav Ganguly removing his shirt after the famous Lord's victory. Harsha Bhogle is thrown in as well and consumers, who seem to like this commentator-cricketer combination, have voted it as the third best ad this week.

Hero Honda sales up 23% in April - Jan
Business Line, Monday, February 03, 2003

Hero Honda Motors Ltd has said its sales during April-January period of the current fiscal rose by 22.68 per cent to 14.27 lakh motorcycles over the same period last year.

In January, the company sold 1.45 lakh motorcycles, up by 16. 45 per cent sequentially over December, according to a company statement.

In the same month a year ago, Hero Honda achieved a sale of 1.37 lakh units.

Hero Honda Crosses Rs. 5000 crore (US$ 1 Billion) Sales Turnover Landmark
Monday, March 31, 2003

Hero Honda, World No. 1 two-wheeler company, today, announced its achievement of over Rs.5000 crore (US$ 1 billion) sales turnover landmark for the year 2002-2003.

The total sales turnover for 2002-2003 is estimated to cross Rs 5000 crore, up from last year's turnover of Rs 4539.49 crore. The detailed financial figures will be announced post the Board Meeting in April 2003.

The company finished the year with total motorcycles sales of 16.77 lakh; an increase of 18% over last year's sales of 14.25 lakh units.

The increase is significant considering company's existing large base and uncontrollable external factors viz. Gujarat episode, low agricultural output resulting in lack of rural income, high petrol prices and continuing economic recession, which affected the motorcycle industry as a whole for the last few months.

For the period April 2002 to Feb. 2003, Hero Honda maintained its dominant leadership in the motorcycle industry with a market share of 44%.

During the year, the company achieved another milestone by becoming the first Indian two-wheeler company to cross the cumulative sales mark of 7 million motorcycles. Splendor continued to remain the largest selling two-wheeler brand in the world for the third successive year.

The company has lined up a slew of launches in the next fiscal. The first launch, a 100cc entry-level model is scheduled in April 2003 to be followed by a premium 200cc plus motorcycle in May 2003. In October 2003, launches of upgraded variants of the existing models have been planned.

Hero Honda - Performance Par Excellence
New Delhi, Thursday, April 10, 2003

Hero Honda is a 'Billion Dollar' Corporate
Total Turnover crosses Rs5000 crore; up by 14%; PAT soars by 25%;
Operating Margin up by 12%
Announces dividend of 500% and a special dividend of 400%

Immediately following its Board Meeting today, Hero Honda Motors Ltd., the 'World No. 1' two-wheeler company, announced excellent financial results for the fiscal year 2002-2003.

The company's Profit After Tax (PAT) soared to Rs 581 crore, a growth of 25% over last year's Rs 463 crore. The Profit Before Tax went up to Rs 885 crore, moving up from Rs 694 crore, registering a remarkable increase of 27%.

The operating margin was an impressive 15.52%, versus 13.90% in the last fiscal.

The company's total turnover (sales turnover plus other income, net of excise) grew to Rs 5195 crore, a growth of 14% over Rs 4539 crore recorded in 2001-02.

Widely acknowledged as one of the most investor-friendly companies, the company announced a dividend of 500% and a special dividend of 400%.

The company recorded a volume sale of 16,77,535 motorcycles during the year, registering a splendid jump of 18%, over last year's sales (14,25,302 motorcycles).

The company finished the year with 44% market share in the motorcycle category and 33% in the two-wheeler category.

Commending the company's achievement, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "It is our constant endeavour to enhance the value of our stakeholders' interests. Adopting global benchmarks, and our resolute focus to produce unmatched performance, has led to the landmark achievement of crossing Rs 5,000 crore sales revenue. As a company, we remain the leader in two-wheeler in India; and in the world. It will be our endeavour to maintain our leadership, with the support of our esteemed customers and all stakeholders. Our business philosophy of producing technologically advanced and fuel-efficient motorcycles, customized to the customers' needs; and the excellent support of our partner, Honda Motor Co. Ltd., Japan has helped greatly in our success".

On the notable improvement in the company's Operating Margin, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. mentioned, "Despite strong competitive pressure, the company has improved operating margins significantly. This reiterates our continued and dedicated efforts towards cost rationalization, higher indigenisation, better working capital management and improved manufacturing efficiencies".

Announcing the Dividend, the Chairman said, "The company has yet again showcased its commitment and resolve to delight its shareholders".

As part of the company's continuing efforts to offer best products to its customers, Mr. Pawan Munjal said, "As per market requirements, we have lined up a slew of launches this year. Our aim is to expand our market share in the entry-level segment and further consolidate our position in the executive segment. We are also all set to re-define and give a new direction to the future of the motorcycle market with the launch of the premium 200cc plus motorcycle in May 2003."

On new product introductions, Hero Honda would launch the 100cc entry level model in April. Adding more power to its premium segment range, the company would launch its premium 200 plus cc model in May; and the upgraded variants of its existing successful models in the second half of the year.

"Continued focus on reaching out to customers and delighting them will further consolidate our market leadership. Hero Honda's Passport Programme, unique to the two-wheeler industry, has become one of the largest customer relationship programmes in India, with over one million membership. It continues to be our main customer thrust area", said Mr. Pawan Munjal.

The company's latest offering, AMBITION, a 133cc motorcycle, targeted at people aspiring to "Move up in Life", created a new market segment of POWERFUeL motorcycles.

Hero Honda's 'Ride Safe Programme', an initiative to promote safe riding, was further extended to cover many more dealerships, with special training events organized with the traffic police in co-ordination with SIAM.

In tune with market needs, the company's dealer sales and service network has been expanded to cover over 1500 outlets, across the country.

During the year, the company achieved another milestone by becoming the first Indian two-wheeler company to cross the cumulative sales mark of seven million motorcycles. SPLENDOR achieved the distinction of remaining the largest selling two-wheeler brand in the world, for the third successive year.

Hero Honda Motors Ltd. Year 2002-03 Sales Growth
New Delhi, Tuesday, April 01, 2003

Hero Honda Motor Ltd., the country's largest two-wheeler maker, finished the year 2002-03 with total motorcycle sales of 1,677,535 units; a growth of 18% over last year's sale of 1,425,302 motorcycles.

For the month of March 2003, the company posted sales of 115,722 motorcycles compared to 135,464 in March 2002. As reported earlier, the economic slowdown, as a consequent of drought in certain parts of the country, and low agricultural production, affected the demand for a whole lot of durables including motorcycles. Lack of clarity on VAT issues also impacted sales.

The company achieved a significant landmark in exceeding its sales turnover target of Rs 5000 crore during the year; up from Rs 4539.49 crore in the previous year.

Hero Honda's 223 cc Bike Comes with Rs 79,000 Tag
The Economic Times, New Delhi, Friday, May 16, 2003

Bike market leader Hero Honda today launched its premium-end 223 cc performance bike Karizma at Rs 79, 000 ex-Delhi. Fitted with a 5- speed gearbox and front disc brakes, the Karizma will add 20,000 units to the Hero Honda volume tally this fisc. Speaking at the launch, Hero Honda managing director Pawan Munjal said the total expenditure on the new model including product development costs worked out to around Rs 30 crore.

The launch budget for the bike, which debuts with 10% import content to be localised gradually, is around Rs 8-9 crore.

The company has also started "working with Honda on the next generation engine which will include fuel injection and other features and will debut very soon," Mr Munjal said. The new range of engines will span a wide range of capacities and will be introduced in new models from 04-05. The Rs 100 crore earmarked investments for this fiscal include both new models and expense on the new range of engines.

The new model plan "finalised with Honda" would also include upgrades for existing models like the CBZ though the company is planning upgraded variants of its best-selling Splendor/Passion range later this year, Mr Munjal said.

Hero Honda is also conducting "dialogue with Honda on the possibility of export both to independent markets as well as to Honda Japan," Mr Munjal said. The export plans include the Karizma, which may enjoy a market in the west. Currently the company is exporting components to Honda units in Vietnam, Philippines and Indonesia.

Hero Honda Prepares Roadmap for New Models
The Hindu, Friday, May 16, 2003

Hero Honda Motors Ltd. (HHML) has entered into a business plan arrangement with Honda Motorcycle Scooter India Pvt. Ltd. (HMSI) that clearly demarcated the turf as regards the product rollout by the two companies in the period up to April 2008.

Without going in to the details of the arrangement the HHML Chairman, Mr Brij Mohan Lall Munjal, told newspersons here that there is clear understanding between the two companies on the "model line-up" that would be pursued by each of them until April 2008.

This statement by Mr Munjal comes even as the technical collaboration agreement between Honda Motors, Japan and Hero Honda is slated to expire in 2004. After the agreement ends, HMSI is free to enter motorcycles segment and Hero Honda can foray into the scooters segment.

HHML, which is working with Honda on the next generation engine for bikes, is also in dialogue with Honda for export of bikes, which could be re-exported to western markets. The next generation engines are likely to be used from fiscal 2004-05 in bikes, other than KARIZMA that was launched here on Thursday.

KARIZMA, a 223 cc premium sports motorcycle, is positioned in the fastest growing power segment of the motorcycle market. Priced at Rs 79,000 (ex-showroom Delhi), KARIZMA comes in 7 colours including a " turquoise blue"- which is supposedly a first in the Indian motorcycle industry. "We plan to sell 20,000 units of KARIZMA in the remaining months of the current fiscal. About Rs 30 crore has been spent for developing the bike," Mr Atul Sobti, Sr. Vice- President, Marketing & Sales, said.

On the customer profile for KARIZMA, Mr Sobti said the company expects a lot of customers to upgrade from lower powered bikes. "With easy financing availability, the price of Rs 79,000 is not very high," he said.

Hero Honda also plans to come out with 2-3 variants in the executive segment in September this year. On whether the launch of KARIZMA, which has about 90 per cent localisation, completed the product portfolio for Hero Honda, Mr Sobti said, "in a static mode, we are the most complete bike manufacturer". He however pointed out that the motorcycle market was quite volatile and also a good growing market, which could give rise to newer possible models.

On the demand outlook for motorcycles in current fiscal, Mr Sobti said, "despite April not looking good, May is better". He said that Rabi crop has been "decent" and "the start has been good".

Hero Honda Unveils 223-cc Karizma
Financial Express, Friday, May 16, 2003

Hero Honda Motors Ltd. has launched 223-cc motorcycle 'Karizma' (pronounced karitzma), priced at Rs 79, 000 (ex-showroom, New Delhi). Initially, the premium sports bike will be rolled out in top 175 dealerships (out of its network of 450 dealerships) in 100 towns.

Company managing director Pawan Munjal hoped to sell around 20,000 units of Karizma in 2003-04. "Between Karizma and CBZ, we would sell over 45,000 units this fiscal. Margins are certainly better than what we can get in entry level bikes."

Mr Munjal said that the company was currently working on the next generation of engines, which would drive a wide range of products in the future, including a new batch of bikes targeted at the volume segment in fiscal 2004-05.

Hero Honda's capital expenditure for the fiscal 2003-04 is put at close to Rs 100 crore. This includes development of next generation of engines as well as new products. A month ago, the company rolled out entry-level CD-Dawn. The company has plans to rollout a couple of variants during September-October. Mr Munjal said that the company was waiting for the feasibility report, which will be out in September 2003 to take a decision on whether to utilise the existing facilities for further capacity expansion or to set up a separate greenfield operation. "We've already stretched capacities up by around 25 per cent. We certainly need more capacity to grow," Mr Munjal said.

Hero Honda is looking at double-digit growth for volume sales, turnover, and PAT. Company vice-president (marketing) Atul Sobti said, "We are expecting double digit growth. A clearer picture will emerge only after the first quarter."

The creative account for Karizma has been bagged by JWT. The launch budget for the brand is said to be around Rs 8-9 crore. The company plans to spend around Rs 131- Rs 140 crore on advertising and promotion this fiscal.

Hero Honda to Invest Rs 100 crore
Times of India, Friday, May 16, 2003

Hero Honda Motors Ltd. is planning to infuse Rs 100 crore to develop next generation direct- injection engines, which would power all bikes to be produced from next fiscal. The country's largest bike maker also rode into the power segment of the motorcycle market on Thursday, with the launch of 223cc Karizma at Rs 79,000.

Company chairman Brijmohan Lall Munjal said the JV will invest Rs 100 crore in the current fiscal to develop the new engine technology. "We are not setting up a separate engine plant but are in dialogue with Honda Motor to produce next generation engines."

The new engines, he said, would cover all segments ranging from the basic 100cc to the power segment. "We will also look at how best to use these engines on our existing bikes,' he added.

Meanwhile, unveiling the Karizma, Munjal said "the bike would be available from June in a phased manner across the country. Karizma is the most expensive bike in Hero Honda's product portfolio and comes within a month of the launch of CD-Dawn, priced at Rs.31, 800."

"We have introduced two motorcycles this fiscal and two more variants will also be offered this year itself. The new versions will be introduced keeping in mind the customer feedback," Munjal said.

Hero Honda expects the motorcycle demand to revive this fiscal, helping it end the fiscal with double-digit growth. Motorcycle and step-thru sales fell 3.3 percent in March 2003 and posted a 6 per cent growth in April.

Hero Honda Unveils Karizma
The Hindustan Times, New Delhi, Friday, May 16, 2003

Hero Honda unveiled its new motorcycle-Karizma on Thursday. The motorcycle, which is aimed at the fast- growing 'power' segment, will be priced at Rs 79,000 ex-showroom Delhi. Hero Honda MD Pawan Munjal said this new product "was defining a new segment altogether."

A 17 horsepower, 223cc engine will power the Karizma and, according to Hero Honda, it has the fastest acceleration of any motorcycle in India. The product will also feature a front disc brake: five-spoke alloy wheels and digital instrument cluster as original equipment and will be available in a range of seven colours. The company expected the new bike to sell around 20,000 units before December 2003.

Munjal felt the target segment for the new bike would be people moving up the value chain and those who "wanted to rediscover their youth." Hero Honda's initial launch budget for the bike has been pegged at around Rs 8-9 crore.

Hero Honda Rolls Out Karizma
The Hindu, New Delhi, Friday, May 16, 2003

Hero Honda Motors today rolled out its high powered 223cc motorcycle Karizma and said talks were on with joint venture partner Honda Motors of Japan for the next generation engines.

The company would also invest Rs 100 crore for new models and new engine technology. The new engine technology would be put in place by fiscal 2005, Hero Honda Chairman, Brijmohan Lall Munjal, told a news conference here.

Karizma had been priced at Rs 79,000 (ex-showroom, Delhi) and would be available from June in a phased manner through almost 1,500 sales network across the country, he said. The company recently launched its 100cc motorcycle, CD Dawn, and with the introduction of a 223cc motorcycle, the product portfolio of the company caters to a cross section of riders, he said.

"We have already introduced two motorcycles this fiscal and two more variants will also be offered this year itself. The new versions will be introduced keeping in mind the required alterations," Mr. Munjal said.

Karizma had 10 per cent import content which would go down in due course, Mr. Munjal said adding that Hero Honda was in talks with Honda to export motorcycles to the Western countries.

Hero's Karizma
The Pioneer, New Delhi, Friday, May 16, 2003

Hero Honda launched a 223cc premium sports motorcycle called Karizma on Thursday and announced plans to come out with new generation engines of a wide range from the same engine plant of the company. The new motorcycle targeted at the "born again bikers and upgraders", are likely to be exported to Honda and independent markets elsewhere, Hero Honda Chairman Brijmohan Lal said. It is priced at Rs 79,000 ex-showroom, Delhi. The company has fixed a target of selling 20,000 units of Karizma in the current fiscal. It has an import content of ten per cent at present and this would be reduced gradually, he added. Pawan Munjal, managing director, said the company has already started exporting spares to Vietnam and Philippines.

Hero Honda to Invest Rs 100 crore in New Models
The Asian Age, New Delhi, Friday, May 16, 2003

Automobile major Hero Honda Motors on Thursday launched the 223cc motorcycle 'Karizma', signaling its entry into the low volume premium motorcycle market in the country.

The company also announced that it has initiated talks with joint venture partner Honda Motors of Japan for developing and producing the next generation engines for most of its existing and upcoming products.

The company would also invest Rs 100 crore for new models and new engine technology. The new engine technology would be put in place by fiscal 2004-05, Hero Honda chairman. Brijmohan Lall Munjal told reporters after the launch of the new motorcycle.

Hero Honda Launches Karizma
The Tribune, Chandigarh, Friday, May 16, 2003

Hero Honda today launched a 223cc premium sports motor cycle called Karizma and announced plans to come out with new generation engines of a wide range from the same engine plant of the company. The new motor cycle targeted at the "born again bikers and upgraders", are likely to be exported to Honda and independent markets elsewhere, Hero Honda Chairman Brijmohan Lall said. It is priced at Rs 79,000 ex-showroom, Delhi.

Hero Honda Unveils 223-cc Karizma
Financial Express, New Delhi, Friday, May 16, 2003

Hero Honda Motors Ltd has launched 223-cc motorcycle 'Karizma' (pronounced Karitzma), priced at Rs 79,000 (ex-showroom, New Delhi). Initially, the premium sports bike will be rolled out in top 175 dealerships (out of its network of 450 dealerships) in 100 towns.

Company Managing Director Pawan Munjal hoped to sell around 20,000 units of Karizma in 2003-04. "Between Karizma and CBZ, we would sell over 45,000 units this fiscal. Margins are certainly better than what we can get in entry-level bikes."

Mr Munjal said that the company was currently working on the next generation of engines, which would drive a wide range of products in the future, including a new batch of bikes targeted at the volume segment in fiscal 2004-05.

Hero Honda's capital expenditure for the fiscal 2003-04 is put at close to Rs 100 crore. This includes development of next generation of engines as well as new products. A month ago, the company rolled out entry-level CD-Dawn. The company has plans to rollout a couple of variants during September-October. Mr Munjal said that the company was waiting for the feasibility report that will be out in September 2003 to take a decision on whether to utilize the existing facilities for further capacity expansion or to set up a separate greenfield operation. "We've already stretched capacity up by around 25 per cent. We certainly need more capacity to grow," Mr Munjal said.

Hero Honda is looking at double-digit growth for volume sales, turnover, and PAT. Company Vice-President (marketing) Atul Sobti said, "We are expecting double digit growth. A clearer picture will emerge only after the first quarter."

The creative account for Karizma has been bagged by JWT. The launch budget for the brand is said to be around Rs 8-9 crore. The company plans to spend around Rs 131- Rs 140 crore on advertising and promotion this fiscal.

Hero Honda Launches India's First Premium Sports Motorcycle - Karizma
New Delhi, Thursday, May 15, 2003

KARIZMA to redefine the Indian motorcycle market; company sets formidable benchmarks in technology & innovation

Advanced Technology features like AMI system with CCVI, ignition cut-off and constant vacuum carburettor to provide superb riding performance
Exclusive Firsts such as digital odometer, digital tripmeter, digital fuel gauge and real time clock guarantee precise measurements
Power Par Imagination: 0 to 60 kmph in 3.8 seconds, the best in the Indian motorcycle industry
Pass Switch and large front disc brake to provide increased safety

Hero Honda, the 'World No.1' two-wheeler company, today demonstrated its 'techpower' with the launch of India 's first premium sports motorcycle, KARIZMA . With this, the company today offers a comprehensive product offering to the discerning Indian customer.

The nationwide launch of this technological marvel took place today at a press conference in New Delhi .

Playing a market leader's role of continuously reinventing the Indian motorcycle industry and enhancing its performance benchmarks, the 223 CC motorcycle, KARIZMA , is aimed at creating a new segment of premium sports motorcycles.

With a maximum power of 17 PS @ 7000 rpm, KARIZMA is targeted at customers seeking to enjoy the 'thrill of power on wheels of style'. A product of combined R&D efforts of Hero Honda-Honda, the motorcycle guarantees exceptional performance with unmatchable style and utmost comfort.

Enthused at the launch of KARIZMA, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Limited, said , "Two model launches in one month gap, in two distinct market segments, exemplifies the technological capability of the company. With this launch, Hero Honda today offers superior product offerings in each segment of the Indian motorcycle market, some exclusive only to Hero Honda. Going forward, we would be launching more models that promise unique experience to our valued customers."

Elaborating on the technological strength of the company, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Limited, said , " KARIZMA showcases our technological supremacy. It is a true reflection of the combined strength of Honda and Hero Honda. Technology has always served as the competitive advantage for us. With KARIZMA , we have taken the industry's technology benchmark a few notches higher."

Mr. Atul Sobti, Sr. Vice-President, Marketing & Sales, Hero Honda Motors Limited, said , " Superior technology plus advanced features plus captivating looks equals KARIZMA . The future of the Indian motorcycle market should be seen through KARIZMA . It is certain to change the way in which the Indian customer looks at a premium bike."

The model would be manufactured at the company's state-of-the-art Gurgaon plant. The motorcycle is priced at Rs 79,000 (ex-showroom Delhi ).

Unique features of KARIZMA:

Advanced Microprocessor Ignition (AMI) System with an Intelligent Carburettor having CCVI (Carb Controlled Variable Ignition), to help in better control of ignition timing. It further improves the drivability, acceleration and also betters the fuel-efficiency.

Ignition cut-off feature to prevent damage to engine at high rpm.

Constant Vacuum Carburettor provides the right air-fuel mixture required by the engine, independent of the external conditions such as air temperature, density and humidity.

KARIZMA also includes several first-time features to provide accurate measurements to the rider, such as: Digital Odometer, Digital Tripmeter, Digital Fuel Gauge and Real Time Clock.

The large front disc brake of the motorcycle offers most effective braking with minimal of effort. Moreover, the braking effectiveness would not diminish even under extreme weather conditions.

The motorcycle would be available in seven appealing colours, including, Candy Blazing Red, Windsor Red, Myth Gold Metallic, Moon Yellow, Sparkling Silver, Turquoise Blue and Black.

KARIZMA would be available from June in a phased manner, through the Hero Honda's wide network of almost 1500 sales and service points, spread across the length and breadth of the country.

Hero Honda May Sales Up
The Hindu, Tuesday, June 03, 2003

Sales of Hero Honda Motors jumped by 12.2 percent in May fuelled by record sales of the flagship model Splendor. The company sold 1.64 lakh motorcycles against 1.45 lakh units in the same month last year, a company spokesperson said. Sales in May were also higher by 21.8 per cent as compared to 1.34 lakh units sold in April this year, he said

Hero Honda achieved its highest-ever sales of 1.02 lakh units of the 100cc Splendor model during the month, the spokesperson added.

Team OVERDRIVE & Hero Honda KARIZMA Establish 12 Time & Distance National Records (Annexure)
Tuesday, July 29, 2003

Experts from India 's leading automotive enthusiast magazine ride India 's first and only premium sports motorcycle non-stop at 105.209kmph for 24 hours, in the process breaking the time and distance barriers and...

...introducing the art form of record breaking, a new discipline of bike sport.

Pune, July 29, 2003: How does the thought of doing a trip from Pune to Chennai and back sound to you? All that in just a day and on a motorcycle? Grabs your attention, doesn't it?

Well, the team of experts from OVERDRIVE magazine, headed by their Editor-in-Chief Adil Jal Darukhanawala did just that and more to herald in the newest discipline of bike sport in India , - time and distance record breaking. Using the latest premium sports motorcycle from Hero Honda, the spanking new 223cc KARIZMA , Adil and his three colleagues - Aspi Bhathena, Bertrand D'souza and Sherri Bhathena established no less than 12 national records and destroyed a million myths as they stroked their way to 2525.033km in a span of 24 hours.

This event was run on July 26-27 (started at 16:00 hrs on Saturday, July 26 and finishing at the same time the next day) on the 4.226km lap length high-speed track at the National Centre for Automotive Testing (NCAT) at the Vehicle Research and Development Establishment (VRDE) in Ahmednagar. Not only was the 24 hour ultimate record established, but eleven other time and distance records were also set, a fact corroborated by the officials from the Federation of Motor Sports Clubs of India (FMSCI), the national motorcycle sports authority in India . Three FMSCI officials monitored the record attempt round the clock, monitoring the times, the speeds, the stops and the lap recording after which they computed the 12 records from the data logged in and declared the same as the first national motorcycle time and distance records in India.

The KARIZMA ran at an average speed of 105.209kmph for 24 hours, of which the last 2 hours and 45 minutes, the VRDE track was awash with high monsoon showers, signifying a high level of endurance for both men and machine. A list of the other eleven records, the rider change stints, the pit stop details, the fuel consumed and other details are given in the accompanying annexes.

The KARIZMA ran like a locomotive, without missing a beat all day long and the only attention it needed was from the service crews to ensure the transponders on the bike (or the timing and lap recording) had not worked loose and the tank needed refueling with IOC's Premium 91 octane petrol. Its handling, its stability, its seamless power delivery and its super riding position allied to its reliability impressed the usually reticent and highly critical staffers of OVERDRIVE magazine.

Enthused by the performance, OVERDRIVE editor and the man who rode the most on the lead bike (for over seven hours) Adil Jal Darukhanawala said, "The unprecedented levels of handling and steering made us all comfortable in the saddle at high speed for consistently long riding stints. Keeping the throttle twisted to the max virtually 24 hours long, says a lot about the performance of the KARIZMA, for under no circumstances did we ever envisage doing 2525km when we took the start. It is fitting that the country's newest contemporary sports bike was put to the ultimate test by the most discerning men in the business and it emerged with flying colours."

Mr Deepak Mokashi, General Manager Sales, Hero Honda Motors Ltd ., said "We are extremely pleased to be the first two-wheeler company in India to have participated in this discipline of motorcycle sport. This sport served as an excellent platform to display the technological superiority of KARIZMA . We are thrilled with the results of the exercise. It is a testimony to the superior technology and capabilities of Hero Honda. I must also thank OVERDRIVE magazine for choosing to set the new record breaking exercise with our motorcycle."

Mr Shrikant Karani, Vice-President of the Federation of Motor Sports Clubs of India , who headed the three-member panels of stewards and technical experts delegated to monitor the event was equally emphatic about the country's first ever record run. "On behalf of the national federation, I am happy that this historical event took place and I congratulate both OVERDRIVE , and Hero Honda not only for setting new benchmarks but also for bringing in a new form of bike sport into the Indian sporting arena."

Hero Honda Continues To Delight Indian Customer
Friday, July 11, 2003

Sales volume grow by 8.8 % and turnover by 5%

PAT grows by 13%
EPS shows consistent growth at 13 %
KARIZMA establishes leadership in premium sports motorcycle category
CD-Dawn, an immediate national success
Splendor continues its dominance

Hero Honda Motors Ltd., the 'World No.1' two-wheeler company, today announced the results for the first quarter of the fiscal year 2003-04, after the company's board meeting held today.

The company's Total Turnover (sales turnover plus other income, net of excise) grew to Rs 1360 crore, a growth of 5 % over Rs 1290 crore recorded in the corresponding period last year.

The company's Profit After Tax (PAT) increased to Rs 158 crore, a growth of 13 % over last year's Rs 139 crore. The Profit Before Tax went up to Rs 234 crore, registering a remarkable increase of 9% over Rs 215 crore recorded in the corresponding period last year.

The company's philosophy of customer focus, cost rationalization, improving working capital management and increasing manufacturing efficiency was reflected at operating margin which is at 15% (This is despite the 'Celebration Offer' shared with the customer.)

The company recorded a sales volume of 4,58,779 motorcycles during the year, registering a jump of 8.80 %, over last year's sales (4,21,679 units of motorcycles).

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "Consistent performance is a mark of a true leader. Hero Honda's successful entry in two new and contrasting market segments in the first quarter demonstrates the technological strength of the company. We have been able to continuously benefit from our cost rationalisation efforts which have reflected on our growing PAT and EPS."

Commending the performance of the company's recently launched new models, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, "The tremendous success of our new models, the entry segment 'New Value' CD-Dawn and the premium sports bike KARIZMA, launched in April and June respectively, exemplify Hero Honda's inherent understanding of the Indian customer. Besides consolidating Hero Honda's leadership position, the two models have also redefined the future shape of the Indian motorcycle industry."

Announcing the company's future launch plans, Mr. Pawan Munjal, said, "We would launch two more enhanced products in the current fiscal year which would offer an additional choice to our valued customers. These products are being developed on the basis of the customer feedback and would further enthuse the Indian motorcycle market."

The company's latest offering, KARIZMA, India 's first true sports motorcycle, launched in early June, has set new standards in the Indian premium motorcycle market. The motorcycle has sold close to 2,000 units within less than a month of its launch.

Hero Honda's Splendor, the world's largest selling motorcycle, crossed yet another landmark in May by becoming India 's first motorcycle to cross the 1 lakh sales mark, in a single month. Splendor has been India 's largest selling model since year 2000, and today has over three million satisfied customers in the country.

Hero Honda sets the market on fire
Friday, October 31, 2003

Establishes new world record - 2 lakh plus motorcycles sold in single month

Market share increases

Record retail sales: Over 2.5 lakh motorcycles
Passion Plus & Splendor+ off to flying starts
CD-Dawn becomes the 2nd largest selling model in the country

On the back of a buoyant demand, further propelled by the excellent response to its two most recent launches in the executive segment, Splendor + and Passion Plus , Hero Honda, the World No.1 two-wheeler company, recorded an outstanding performance in October 2003.

The company sold more than 2 lakh motorcycles in October 2003, as against 1,65,066 units sold during October 2002 - registering a strong growth of 21%. As compared to the sale in September 2003 (1,57,583), the company recorded a growth of 27%. And far more in terms of retail share.

Two lakh plus units sale in a single month is the highest ever sales recorded by any two-wheeler manufacturer in a single country, in the world. The retails crossed 2.5 lakh units in October.

There is an expected impact on competition, with a sizeable market share swing to Hero Honda. From 43% market share recorded in October 2002, the company's market share in October 2003 is expected to jump to 47% plus.

The demand for the Hero Honda motorcycles was so high across the country, that most dealers' stocks dried up, otherwise the sales growth could have been even higher.

The company's robust performance was led by the nationwide success of its new models introduced during the current fiscal year - Splendor +, Passion Plus and CD-Dawn.

In the beginning of the year, the company had launched CD-Dawn in the entry segment. Within 6 months of its launch, it has become the second highest selling motorcycle model in the country, after the Splendor. CD Dawn was an immediate hit and had recorded a sale of 1,00,000 units within 100 days of its launch.

In the executive segment, the company further consolidated its leadership by launching Splendor + and Passion Plus in September/October 2003.

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said, "With these superb results, we are ever more confident that we will retain the World No. 1 title for the 3rd consecutive year."

Mr. Pawan Munjal, Managing Director, Hero Honda Motors, said, "Splendor + and Passion Plus performance has been truly impressive. They were developed keeping in mind the changing customer needs and demands. This performance exemplifies the company's comprehensive understanding of the Indian customer and the unparallel brand equity both models enjoy in the country."

Mr. Atul Sobti, Senior V.P., Marketing and Sales, Hero Honda Motors Ltd, added, "The festival promotion titled, 'Dil Se', touched the hearts of the Indian customer. The customer response has been phenomenal." Everybody who bought a Hero Honda motorcycle during the festival period received a special Hero Honda gold ring, as a part of the promotion.

Hero Honda Announces Robust Half Yearly Financial Results New Model Launches Fuel Company's Leadership
Tuesday, October 14, 2003

Demonstrates growth of 9 % in Sales Volume
Profit After Tax (PAT) up by 13%;
Operating Margins (EBIDT) 16.4%
Successful performance of new CD-Dawn and Passion Plus reaffirm Hero Honda's customer centric outlook

Hero Honda, the 'World No. 1' two-wheeler company, today announced impressive half-yearly financial results for the period April-September 2003.

The company's Profit After Tax (PAT) during the first half of the current FY jumped to Rs. 314 crore, a growth of 13 per cent, over Rs 279 crore recorded in the corresponding period last year. The Profit Before Tax has gone up from Rs 428 crore to Rs 467 crore, registering an increase of 9 %.

The operating margin (EBIDT) for the second quarter was an impressive 16.5%, versus 16.3 % in the first quarter of the current financial year. This marks a further improvement of 1%, reflecting Hero Honda's continued success in cost rationalization, improved working capital management and an increase in the manufacturing efficiency.

The company's Total Turnover (sales turnover plus other income, net of excise) grew to
Rs 2661 crore, a growth of 4% over Rs 2549 crore recorded in the corresponding period last year.

The company recorded a volume sale of 9,05,233 motorcycle units during the six-month period, registering a jump of 9 per cent over sales volume in the corresponding period last fiscal year (8,29,292 units).

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "We are quite pleased with our performance. We thank all our associates, for their noteworthy contributions. With good monsoons and the current festival season, the third quarter looks very promising. We are confident of recording even better financial result for the full year period."

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, "Our results clearly show that our new product strategy has been an overwhelming success. It also reconfirms our excellent relationship with Honda Motor Company. The recently launched, Splendor+, a variant of the world's largest selling motorcycle - Splendor, would further strengthen our product portfolio."

"On one hand the immensely successful CD-Dawn has cemented our leadership in the entry level segment on the other hand KARIZMA has created a new premium segment in the Indian motorcycle industry. It has showcased the technological superiority of Hero Honda, and our capability to offer the very best and the latest to the Indian customer. The market success of Passion Plus, in the first month of its launch, exhibits the company's comprehensive understanding of the customer needs," he added.

Hero Honda's 'customer centric' philosophy received the highest form of recognition recently. The company received an unmatched endorsement for its superior product and service quality from its valued customers. It won the NFO 2003 Total Customer Satisfaction (TCS) Awards for Splendor in the 'Executive' segment and for "CD100SS" in the 'Standard' segment.

Also, as a company, Hero Honda achieved the most consistent TCS Performance in the entire motorcycle industry.

Hero Honda Sweeps Entry and Executive Segment Awards with its Splendor and CD100 SS Models.at the NFO 2003 Total Customer Satisfaction Awards
Thursday, October 09, 2003

Hero Honda, the world No. 1 two-wheeler company, has received an unmatched endorsement for its superior product and service quality from its valued customers .It has won the NFO 2003 Total Customer Satisfaction Awards for two of its models viz Splendor and CD100SS. The NFO Automotive is a specialist division within NFO World Group, a leading global market research and consulting firm. In the India Motorcycle Total Customer Satisfaction study, Hero Honda models received the highest customer satisfaction ratings in two out of the four segments.

Hero Honda Splendor received highest customer satisfaction ratings in the 'Executive' segment and Hero Honda CD100SS achieved the same distinction in the 'Standard' segment. In the Executive segment, Passion ranked No.2 in terms of Total Customer Satisfaction. Hero Honda also achieved the most consistent TCS performance with three of its models, Splendor, CD100 SS and Passion recording a score of above 80.

On receiving the awards, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said, "Customer satisfaction has been the key to our success. It is a privilege to receive this distinction. Splendor has been the world's largest selling model for three consecutive years and this award symbolizes the reason for its incredible success. Even CD100 SS, a 13-year-old model, receiving highest customer satisfaction award, scoring over the newer models, truly exemplifies the company's long-standing commitment to offer superior and advanced products and services."

The Motorcycle TCS study is based on responses from over 5,400 motorcycle owners surveyed this year on the basis of their experience in the first three years of ownership. Analysis focused on the performance of 30 motorcycle models (including model variants) on parameters such as: sales satisfaction, product quality, product performance and design, after-sales service, brand image and cost-of-ownership.

The TCS study was conducted across all motorcycle segments to provide comparisons among similar groups of motorcycles. Customer evaluations were captured at three distinct ownership periods: 1 to 6 months, 7 to 18 months and 25 to 36 months respectively. This helped in understanding the difference in satisfaction levels during initial ownership, during warranty and post-warranty ownership periods.

The study was conducted at 16 centres, including Ahmedabad, Bangalore , Bhopal , Chandigarh , Chennai , Cochin , Coimbatore , Delhi & NCR, Gorakhpur , Hyderabad , Indore , Lucknow , Ludhiana , Mumbai, Pune and Surat .
The study is based on NFO TRI*M-NFO World Group's proprietary Stakeholder Management System. The NFO TRI*M Index score provides a measure of the relationship strength that a given model or brand enjoys with its customers.

NFO World Group is one of the world's leading providers of research-based marketing information and counsel. "Marketing minds specializing in research"(TM), NFO has facilitated Fortune 500 clients' business decisions for more than 50 years by providing in-depth knowledge and understanding of consumers and brands through research. NFO Automotive has launched its services in India with a long-term plan of providing actionable marketing information and counsel. NFO Automotive is well positioned to support the Indian automotive industry with its dedicated team of automotive experts and a strong field network in the country.

Hero Honda's sales to grow 16%
Economics times, New Delhi, Friday, December 26, 2003

Hero Honda Motors, the country's largest motorcycle maker, is likely to post about 16% growth in sales this fiscal ending March 31, 2004, at 1.95 million units due to heavy rural buying after a good monsoon and buoyant demand in the festival season. Sales during the October-December quarter are expected to grow by about 20% to 5.6-5.7 lakh units, a top company official said. He said sales in December 2003 was likely to jump 26% to 1.55 lakh units from 1.22 lakh units sold in the same month last year. "The sales during the festival season have been very good this year," the official said. During April-November 2003, Hero Honda's sales grew by 13% to 1.29 million units. Its sales had grown by 18% during 2002-03 to 1.67 million units. As against this, sales during 2001-02 increased by 38% while in 2000-01, it was 35%. The company's market share, however, slipped from a high of 48% in 2001-02 to 44% in 2002-03.

Hero Honda's Karizma Awarded The BBC Wheels "Bike of the Year 2003"
New Delhi, Wednesday, December 24, 2003

The most celebrated motorcycle of the year has now gone a step ahead. Hero Honda KARIZMA has been awarded the BBC World's Wheels "Bike of the Year 2003", an honour bestowed following a thorough study by a team of experts. The award was announced by BBC World. KARIZMA, India 's only premium sports bike, also won the award for the best two-wheeler in the category of over Rs 70,000.

Speaking on this achievement, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said, "KARIZMA exemplifies advanced technology and unmatched style. We are extremely happy that KARIZMA has received this award which is a testimony to our continued focus on providing the consumers with products and technology par excellence."

Hero Honda, the World's No.1 two-wheeler company, had launched KARIZMA, India 's first premium sports motorcycle, earlier this May, completely redefining the Indian two-wheeler market's premium end. KARIZMA, a 223 cc powerhouse has set formidable benchmarks in technology and performance. During the year, KARIZMA has also been credited with creating a record by taking on THE 24 HRS X-TREME CHALLENGE and running continuously for 24 hours at an average speed of 105 kmph - a true test of a motorcycle's technology and endurance.

BBC World's Wheels Awards aims at assisting the consumers looking to purchase an automobile and arrive at a well-balanced decision. The awards are decided by a panel of experts who follow stringent criteria to arrive at the list of winners.

Hero Honda Inks MoU with PNB On Consumer Finance For Bikes
The Financial Express, New Delhi, Friday, December 19, 2003

Hero Honda Motors Ltd has signed a memorandum of understanding (MoU) with Punjab National Bank (PNB) to offer consumer financing option for Hero Honda motorcycles for a period of up to five years.

The project will be rolled out in the states of Punjab and Haryana before being launched nationally.

The new tie-up with Hero Honda is in line with PNB's new focus on the retail market.

Speaking to FE, PNB chairman and managing director SS Kohli said that out of the overall credit of Rs 43,000 crore, the retail segment's contribution is Rs 7,200 crore.

"We expect retail's contribution to jump to 21 per cent of overall credit by 2004-05-up from 18 per cent last fiscal," he added.

Mr Kohli acknowledged that to compete with aggressive private sector and MNC banks the bank needed to formulate intensive marketing strategies.

"We've made presentation to the RBI to allow us to utilise the services of direct selling agents just like private sector banks are doing. Retail schematic lending is growing and with Hero Honda, we intend to intensify marketing," Mr Kohli said.

Hero Honda chairman Brijmohan Lall said that the over a quarter of its sales of 18 million bikes in the fiscal 2002-03 were sold through consumer financing.

"The percentage of non performing assets (NPA) on overall Hero Honda consumer financing is around 0.75 per cent. And considering a high re-sale value for a Hero Honda product, lenders have lesser risk to undertake," Mr Lall added.

According to MoU, PNB will offer motorcycle financing for all Hero Honda bikes at 11 percent for a period of 1 year and 11.5 per cent for a period of five year. PNB will finance up to 90 per cent of the on-road price of Hero Honda bikes.

The PNB tie- up is expected to give a fillip to consumer finance - driven sales in rural areas, where adequate financing is not available.

HERO HONDA does it again
Business Standard, Friday, December 05, 2003

Hero Honda sold 2,04533 units in November, registering a superb growth of 26%. Hero Honda has sold over 2 lakh motorcycle units a month, for two consecutive months repeating its performance of October. The success has been well spread across all major motorcycle segments. The Splendor+ and Passion Plus duo together consolidated the company's leadership in the executive segment. Launched in mid-April 2003, CD-Dawn cemented its leadership in the entry segment. CD-Dawn is now the second highest selling motorcycle model in the country, after the Hero Honda Splendor.

Commenting on the record performance, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd. said, "Our new products strategy, to identify and satisfy emerging and latent needs, has shaped this success. On this achievement, I would like to thank and congratulate our customers, employees and all stakeholders for their continued faith in the brand - Hero Honda". Speaking on the future outlook of the company, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said "Passion Plus, with its national appeal, has got back the 'style' customer, thereby leading to an increase in our market share in the executive segment. CD-Dawn's tremendous success, since launch, continues strongly. Going forward, we would aim to further strengthen our leadership in the entry and executive segments. And also augment our product offering in the premium segment." Following this incredible performance, the company's outlook for the year look to be great." The company had sold 2,07,472 units in October 2003, as against 1,65,066 units sold during October 2002 registering a strong growth of 26%.

Far Eastern Economic Review

Maintaining third place in the survey of corporate India is Hero Honda Motors, India 's largest maker of motorcycles and scooters. Market watchers expect the company to benefit from this summer's good monsoon that's putting more money in the pockets of rural consumers.

Hero Honda
Business Standard, Friday, December 05, 2003

Hero Honda sprang in a positive surprise, clocking sales of over 2.04 lakh motorcycles in November, just 1.4 per cent lower compared with the previous month. Since October sales were boosted because of festival sales, it's impressive that Hero Honda has maintained sales at similar levels. Year-on-year, the company's motorcycle sales grew 26.4 per cent.

Going forward, industry sales are expected to continue at a strong pace, given that financing continues to be easy, interest rates continue to be low, and public transport systems continue to be poor.

HERO HONDA does it again Sells 2lakh plus units for the second consecutive month
Monday, December 01, 2003

New Models Consolidate Their Market Leadership

- Splendor+ & Passion Plus off to a dream start
- CD Dawn consolidates its position as the new market leader in the 'entry' segment

Repeating the Success of October, Hero Honda, the 'World No.1' two-wheeler company, has sold over 2 lakh motorcycle units a month, for two consecutive months. Hero Honda sold 2,04,533 units in November, registering a superb growth of 26 %.

The success has been well spread across all major motorcycle segments. The Splendor + and Passion Plus duo together consolidated the company's leadership in the executive segment. Launched in mid-April 2003, CD Dawn cemented its leadership in the entry segment. CD Dawn is now the second highest selling motorcycle model in the country, after the Hero Honda Splendor.

Commenting on the record performance, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "Our new products strategy, to identify and satisfy emerging and latent needs, has shaped this success. On this achievement, I would like to thank and congratulate our customers, employees and all stakeholders for their continued faith in the brand - Hero Honda."

Speaking on the future outlook of the company, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said, "Passion Plus, with its national appeal, has got back the 'style' customer, thereby leading to an increase in our market share in the executive segment. CD Dawn's tremendous success, since launch, continues strongly. Going forward, we would aim to further strengthen our leadership in the entry and executive segments, and also augment our product offering in the premium segment." Following this incredible performance, the company's outlook for the year looks to be great".

The company had sold 2,07,472 units in October 2003, as against 1,65,066 units sold during October 2002, registering a strong growth of 26 %.

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