HERO HONDA CONTINUES ASSISTANCE TO TSUNAMI VICTIMS Contributes Rs. 2 Crore to PM's Relief Fund

New Delhi, January 11th­­, 2005: Hero Honda Motors Ltd., along with all its associates, is continuing its efforts towards providing relief and assistance to the Tsunami victims, as its foremost priority. As a part of this endeavor, the Hero Honda Management and ancillaries have contributed an aid of Rs. 2 Crore to the Prime Minister's Relief Fund.

Earlier, soon after the tragedy struck, Hero Honda had set up three relief camps to carry out immediate relief operations in the affected areas. These camps, operational in Nagapattinum, Chennai and Cuddalore, provided direct assistance to the survivors. These camps were run by Hero Honda employees and were supported by the local Hero Honda dealers and vendors. In addition to these camps, Hero Honda has also extended aid through the Chief Minister's Relief Fund.

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Limited, expressed his grief over the vast destruction caused by the tragedy. He said, "I feel, in this situation, it is the duty and responsibility of each and every human being to contribute, in whichever way, to help the survivors of this tragedy. We are closely monitoring the situation and will continue our assistance, to the best of our ability, to help the victims."

DR. BRIJMOHAN LALL, CHAIRMAN, HERO GROUP
AWARDED THE PRESTIGIOUS PADMA BHUSHAN

New Delhi, March 28, 2005: Dr. Brijmohan Lall, Chairman, Hero Group, was today awarded the Padma Bhushan by Hon'able President of India, Dr. A.P.J. Abdul Kalam at a ceremony held at Rashtrapati Bhavan to honour the Padma awardees 2005. The awardees, which were announced on Republic Day this year, included people from various walks of life such as Business, Media, Entertainment, Public Affairs, Social Work, Art, Literature and Education, Science and Engineering, Journalism and Sports, among others. Dr. Brijmohan Lall was conferred the Padma Bhushan, one of the highest civilian honours in India , for his invaluable contribution to trade and industry.

The Prime Minister, various cabinet ministers, business leaders, foreign delegates, film personalities and bureaucrats attended the impressive ceremony.

Dr. Brijmohan Lall is one of the most respected business leaders not only in India but also globally. He has led Hero Honda from the front to establish it as the 'World No.1' two-wheeler company. Hero Honda today is one of the best examples of successful JV 's worldwide. Dr. Brijmohan Lall is also the man behind the world's largest cycle manufacturing company, Hero Cycles and is the head of the US$ 2.2 billion Hero Group.

'THE NEW FRONTIER'- NEW 'QUANTUM CORE' ENGINE
FROM HONDA

Hero Honda Launches Super Splendor - The' Sarva Guna Sampanna' Bike

March 3, 2005, Mumbai: Hero Honda, the 'World No.1' two wheeler company, has once again redefined standards in two-wheeler engine technology by introducing, for the first time, a 125 cc 'next-generation' engine in the country. The futuristic Quantum Core engine, developed specially for the Indian customer, powers Hero Honda's new offering, the 'Sarva Gun Sampanna' Super Splendor . The 125cc Quantum Core engine , perfected after a series of refinements, offers the customers an unprecedented combination of top-class fuel-efficiency and high power. The new exemplary engine enables the customer to 'Ride the New Frontier'.

With this launch, the company, credited with pioneering the revolutionary 100 cc 4-stroke motorcycle in India , has reiterated its undisputed leadership of the Indian two-wheeler industry.

Announcing the launch of the new motorcycle, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "As the leading two-wheeler brand in the country, we consider it our responsibility to set and improve standards, for the benefit of the customers, and growth of the industry. We are sure that this breakthrough engine technology, will also reinforce the commitment and support from our joint venture partner- Honda Motors, Japan

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., was also enthusiastic at the launch. Elaborating on the fast changing Indian two-wheeler industry, he said, "Hero Honda is already an undisputed leader in the 'deluxe' segment, which is witnessing the highest expansion currently and will continue to do so in the coming years. The launch of Super Splendor will not only strengthen our domination in the segment but will also redefine the structure of the Indian two wheeler industry."

Commenting on the new launch, Mr. Atul Sobti, Executive Director - Business Operations, said, "The new motorcycle has been developed after extensive market research. With its USP of technological excellence, which delivers a unique combination of top fuel-efficiency and high power, this 'Sarva Gun Sampanna' bike will surely prove to be an owner's delight. In line with the top performance, we are also offering a three-year warranty on the bike, for the first time in the Indian two-wheeler industry."

Super Splendor will be available in four variants - drum-kick, drum-self, disc-kick, disc-self and ten vibrant colours - Candy Blazing Red, Black (2 types of stripes), Tahitian Blue, High Granite Blue, Cool Mint Green Metallic, Gold, Silver, Maroon, and Forest Blue Metallic.

The motorcycle will be manufactured at the company's state-of-the-art Gurgaon plant and will be available through Hero Honda's wide sales network of almost 2000 sales and service points, spread across the length and breadth of the country.

he motorcycle is attractively priced at Rs.42, 231 (Drum + Kick version Pune ex-showroom) - net of the Rs 1001/- celebration offer.

HERO HONDA TOUCHES NEW HEIGHTS

New Delhi, April 12 th , 2005: Consolidating its leadership in the two-wheeler market, Hero Honda Motors Ltd., the World's No. 1 Two-Wheeler Company, sold an unprecedented 26,21,400 motorcycles in the year 2004-05 at a growth of 27%, way above the industry growth of 20%. Hero Honda increased its lead over the nearest competition by over 10 lakh bikes during this year, up from eight lakh last fiscal.

Hero Honda also strengthened its market share at 50%, up from 48% last fiscal, ensuring that every second motorcycle sold in the country during the financial year 2004-05 was a Hero Honda bike. Hero Honda garnered 40% market share in the overall two-wheeler industry.

MAJOR PERFORMANCE HIGHLIGHTS FOR THE YEAR 2004-05

The company has once again proved to be one of the most investor friendly companies, creating wealth for its legions of shareholders. It announced a dividend of 1000%, i.e. Rs 20/- on each share of face value Rs 2/-.which would entail an outgo of Rs 399.38 crore excluding withholding tax.

Announcing the annual financial results at a press conference here today, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd , said, "The new launches, technological innovation and the productivity agenda have contributed towards our unprecedented growth. This has also been made possible due to the dedication of the entire Hero Honda family including our vendors and suppliers. This success would be incomplete without thanking our partner Honda Motor Co., Ltd., Japan for their unrelenting support."

According to Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. , "Every second motorcycle sold during 2004-05 was a Hero Honda. We have demonstrated the resilience and enterprise of a true world leader in the face of severe challenges in the marketplace and rising input costs. For us at Hero Honda, Year 2005-06 is again full of innovation and exciting launches, and we will continue to set benchmarks in product quality, market execution and customer satisfaction . We have already increased the capacity in both our plants to more than three million units to meet the rising demand of our customers ."

The Operating Margin for the financial year 2004-05 was at 14.50%, as compared to 15.56% last fiscal, a testimony to the company's relentless pursuit of cost rationalization and judicious management of working capital in spite of increase in input cost. Earnings Per Share (EPS) at the end of the year stood at Rs. 40/-. EBIDTA margin was 15.69%.

The company also registered a robust performance for the fourth quarter of the FY 2004-05. The motorcycle sales for the period January - March 2005 grew by a remarkable 16 per cent as compared to the corresponding period in the previous FY. The company sold 685,419 motorcycles in the quarter, up from 5,92,718 units sold during January - March 2004.

The Total Turnover of the company for the same period also went up by 15% from Rs. 1724 crore in the fiscal 2003-04 to Rs. 1976 crore.  Profit before tax (PBT) during the quarter was Rs. 303 crore as compared to corresponding quarter Rs. 311 crore. Profit after tax (PAT) during the quarter was Rs 207 crore during January - March 2005, from Rs. 211 crore during the same period last fiscal.

HERO HONDA REACHES A MILESTONE WITH 2 MILLION

'RELATIONSHIP PROGRAMME' MEMBERS

Hero Honda Passport Programme - India 's largest Customer Relationship Management (CRM) Program

New Delhi , April 26, 2005: Hero Honda, the 'World No. 1' two-wheeler company, today announced that it has recently achieved a landmark member base of more than 2 million customers for its "Passport Programme". Extending across 1000 authorized Hero Honda dealerships and SSPs, the program has now become India 's largest Customer Relationship Management (CRM) Program. The unprecedented success of the CRM program is a testimony of the faith that the customers repose in the company and its products. It was born out of a need to maximize commitment and strengthen the emotional value that binds our diverse set of customers to the "Hero Honda" brand.

With its apt tagline "Rishta Dil Ka", the Passport Programme is a strong platform for the company to build long-term relationships with its customers, beyond the point of sale, and communicate its brand image of 'trust' and 'reliability'.

The Hero Honda Passport Programme membership is a unique initiative open to the owners of Hero Honda motorcycles. The program offers many tangible and intangible benefits to both the customers as well as to the dealers. Members earn points for incurring expenditure at the Hero Honda dealership/workshop, which can later be redeemed against benefits.

On the occasion of the commemoration of the 2 million-passport program milestone, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said, "At Hero Honda our endeavor is to offer the best in product quality to our customers resulting in highest levels of customer satisfaction. The Passport programme not only builds enduring relationships with our customers but also offer them some 'extra value', beyond just the tangible benefits of our products. This milestone only reaffirms our customers' faith in us, which has been pivotal in the company's growth".

Sharing similar sentiments, Mr. Atul Sobti, Executive Director - Business Operations, Hero Honda Motors Ltd. said, "The Passport Program represents a fundamental change in looking at the customer as a long-term asset rather than a mere target for sales transaction. This landmark figure of 2 million members reaffirms Hero Honda's commitment to be a customer-focused company, continuously striving to provide enhanced value for money to its customers. On this occasion, I want to thank all our customers and dealers who have made enormous contribution in making this program a success."

An extraordinary feature of the programme is the Accumulation model wherein even after redemption, a member's points do not decrease but continues to accumulate to reach the next gift milestone. The basic philosophy behind the programme is to simply reward members for what they do as a routine and not to push them for doing extra to get the rewards.

The Hero Honda Passport programme was rolled out nationally in the year 2001, after a successful pilot in four states in the year 2000. A unique feature of the programme is its reward model, according to which every rupee spent by the member translates into a reward point. These reward points can then be redeemed for exciting gifts.

One of the most significant benefits of this program is a free personal accident policy worth Rs. 1 lakh. Insurance claim of over Rs. 6 crore has already been disbursed to dependent families, exemplifying Hero Honda's concern not just for the safety of its customers, but also their family members.

With the help of this program, the company has already received over 900,000 referrals thus also giving a fillip to sales through favourable word-of-mouth.

Result McCann has been Hero Honda's partner in this initiative right from the beginning. With a dedicated team of more than 100 people, Result McCann looks after the entire back-end operations, from creating and maintaining customer records, to tracking points accumulation, to providing insights about the performance of the programme. The team has also developed special softwares for use at different stages of the programme. Passport processing and dispatch is undertaken at the passport-processing centre on a day-to-day basis. Data processing, bulk mailing and dispatch of gifts and promotional material to dealers are all managed efficiently by the agency, contributing significantly to the success of the programme.

The Passport Programme membership entitles the customer to several other benefits and privileges such as:

•  Participation in the Winner of the Month draw which offers the four winners a Hero Honda Splendor free or Rs. 40,000 cash as per choice

•  Special rewards and discounts an accumulation of specifies points, against purchase of spares accessories and service at the Hero Honda Authorized Dealerships/ Service Centers . The member can earn bonus points even when he visits the dealership for a free service.

•  Invitations to exclusive events such as movie shows, musical nights, etc.

•  Participation in contests through the quarterly newsletter, ' Suhana Safar' , which also keep the members updated on latest developments in the company, new product launches, exclusive offers from other companies etc.

Any Hero Honda customer, including those who bought a Hero Honda bike much before the programme was launched, can also become a member of the Passport programme and avail its special benefits.

HERO HONDA ADDS 'GLAMOUR' TO THE DELUXE SEGMENT
INTRODUCES ITS SECOND MODEL WITH HONDA'S
NEXT-GENERATION 'QUANTUM CORE' ENGINE

23 rd June 2005, Chennai: Hero Honda, the 'World No.1' two wheeler company for the fourth consecutive year, today announced the launch of its new Deluxe segment offering, christened Glamour, in South India. The new model, which comes with Honda's 125 cc 'next-generation' Quantum Core engine, is part of the company's strategy to consolidate its undisputed leadership in the fast growing deluxe segment of the Indian two-wheeler industry.

The futuristic Quantum Core engine, first introduced by Hero Honda in its 125 cc offering - Super Splendor - launched earlier this year, has been developed specially for the Indian customers. Perfected after a series of refinements, the exemplary engine offers the customers an unprecedented combination of top-class fuel-efficiency and high power.

The aesthetics of the motorcycle have also been designed keeping in mind the likes and desires of customers in this segment. The Glamour sports a gen-next visor, which lends it a suitable persona and an aerodynamic look, further strengthened by the contemporary shape of multi-reflector winkers. The motorcycle comes equipped with a big and elegantly contoured fuel-tank, which enables the rider to have a comfortable leg position. The seat of the Glamour is also designed to offer enhanced comfort to the rider. The flush-type lock on the fuel tank is the first-of-its-kind in the segment. Glamour comes with a new tripod instrument panel. The stripes and checkered flag lend the bike a distinct shape and a sporty look. The tail-light and rear visor gel perfectly well with the overall body design of the motorcycle. The stylish muffler adds to the beauty of this latest to-be trend-setter in the motorcycle industry.

Announcing the launch of its second Deluxe segment offering in the current calendar year, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, "Hero Honda has always believed in setting standards for the industry by offering products which not just meet but go beyond customers' needs and desires. Earlier this year we introduced the Super Splendor, with the Quantum Core Engine, which has been much appreciated by our customers. I am sure our new offering Glamour will help us further consolidate our position in the Deluxe segment which is witnessing the highest expansion currently and will continue to do so in the coming years."

Commenting on the new launch, Mr. Atul Sobti, Executive Director - Business Operations, said, "Glamour has been developed on the basis of extensive market research. Every aspect of the motorcycle - from technology to its looks to comfort - has been addressed keeping in mind customers' requirements. Its distinctive features make it stand apart from the growing clutter of models in the segment. Legendry reliability and trust that Hero Honda has always stood for is more than evident in initiatives such as the 3 years/ 40,000 kms warranty that Glamour comes with."

Glamour will be available in four variants - drum-kick, drum-self, disc-kick, disc-self and ___ vibrant colours - Candy Blazing Red, Black with Blue Stripes, Excellent Blue Metallic, Vibrant Green Metallic, Cloud Silver Metallic, Black with Yellow Stripes, Palace Maroon Metallic, Impulse Orange Metallic and Frost Blue Metallic.

The motorcycle will be manufactured at the company's state-of-the-art Gurgaon plant and will be available through Hero Honda's wide sales network of almost 2000 sales and service points, spread across the length and breadth of the country.

he motorcycle is attractively priced at Rs._______ (Drum + Kick version Chennai ex-showroom).

HERO HONDA LAUNCHES SPECIAL INITIATIVE
TO HELP ITS AFFECTED CUSTOMERS
IN GREATER MUMBAI AND KONKAN REGION

Mumbai, August 3, 2005: Hero Honda, the 'World No. 1' two wheeler manufacturer, has announced a special initiative for its customers in Greater Mumbai and the Konkan belt, whose motorcycles may have been affected by intensive rains in the region. As a gesture of concern, the company is initiating "Moving Ahead" service camps, proactively offering customers 50% discount on all spares and service.

As a part of the initiative, the company is offering to repair motorcycles of its customers at a 50 per cent discount on all spare parts, engine oil as well as labor cost. The repairs will be carried out by specially trained Hero Honda technicians. Additionally, the company is also offering the facility of picking up stranded motorcycles of its customers, free of cost.

HERO HONDA SBI CREDIT CARD FOR PASSPORT
PROGRAMME MEMBERS LAUNCHED IN RAJKOT

Hero Honda SBI Credit Card - The First Co-Branded Credit Card
In The Two-Wheeler Industry

Rajkot , October 3, 2005: Hero Honda, the World No. 1 two-wheeler manufacturer, and SBI Card today launched the first Two Wheeler Co brand Card - "Hero Honda SBI Card" in Rajkot .

The first Hero Honda SBI Card was handed over to Mr.... by Mr. Gurvinder Singh Rana, Area Sales Manager ( Gujarat ), Hero Honda Motors Ltd.

The Hero Honda SBI Card already has 21 lakh member base, spread over 50 cities across the country. It can be used at more than 2 lakh outlets in India and more than 30 million outlets around the world displaying the Visa logo. Bringing together two of India 's power brands , the Hero Honda SBI Card would be given Free for first year to all Passport Programme members of Hero Honda.

The Hero Honda Passport Programme members in Rajkot will be able to apply for the credit card at any of the Hero Honda dealerships in the city.

On the occasion of the launch of the credit card in Rajkot , Mr. Gurvinder Singh Rana said, "With a member base of more than 21 lakh customers extending across 1000 authorized dealers and SSPs, Hero Honda Passport Program is today the country's largest Customer Retention Management (CRM) program. The program, under the apt tagline "Rishta Dil Ka", has become a strong platform for Hero Honda to build long-term relationships with customers beyond the point of sale, and take forward the brand image of 'trust' and 'reliability'. This innovative step reiterates our commitment to provide enhanced value to our customers."

Some of the exciting features offered by the Hero Honda - SBI Card include:

•  Tiered rates of interest on Retail outstanding, with interest rates varying with outstanding amount.

•  'Flexi pay' - an easy installment plan at one of the industry's lowest rate of interest @ 10%.

•  'Balance transfer' facility @ 0% interest for 75 days.

•  Free Purchase Protection against fire and theft up to Rs. 15,000 for 90 days

•  Transaction fee waivers on IOC and IBP petrol pumps for fuel purchase of more than Rs. 250

•  Accident insurance cover of Rs one lakh with additional Rs one lakh insurance in case of loss of life on Hero Honda.

•  24 hour SBI Card Customer Helpline in India and Visa Emergency Services in 75 countries.

About Hero Honda Passport Programme:

It was born out of a need to maximize commitment and strengthen the emotional value that binds our diverse set of customers to the "Hero Honda" brand. The 'Passport' program represents a fundamental change in looking at the customer as a long-term asset rather than a mere target for sales transaction.

After the test-launch in four states in 2000, we rolled out the program nationally in April 2001, and extended it to Sales and Service points in October 2001, taking it to the members' neighborhood all over the country. It's been a rewarding journey for members as they earn rewards for all regular transactions for which they were not getting anything extra in the past. They are also treated in a special way, with a host of other benefits as members.

One of the most significant benefits this program gives to its members is the free personal accident policy. Insurance claim of over Rs. eight crore has already been disbursed to dependent families, a fine example of the fact that we care not just for the safety and wellbeing of our customers, but also their family members.

As part of this program, we have built up over 12,00,000 referrals, with tremendous potential to give fillip to sales through favourable word of mouth. We send out a quarterly newsletter called "Suhana Safar" to all 21 lakh members. This constant one-to-one touch with customers keep Hero Honda top-of-mind amongst our customers. Over four lakh members, along with their families, were invited to over 170 entertainment events over the last few years. Birthday greeting are also sent to all members, thus retaining customers for life through such a simple gesture.

Any Hero Honda customer, including those who bought a Hero Honda bike much before the programme was launched, can become a member of the Passport programme and avail its special benefits.  

About SBI Cards  

SBI Card is a joint venture between State Bank of India and GE Money to offer Indian consumers extensive access to a wide range of world-class, value-added payment products and services. The partnership leverages the competitive advantages of SBI's brand equity, 100% blind brand recall, customer relationship and incomparable market presence with GE Money's global expertise and experience in technology and processes.

SBI Cards is today ranked third in the industry with a base of about 1.9 million at present.

HERO HONDA RIDES INTO A NEW SEGMENT
Launches "PLEASURE" - First Hero Honda Scooter
Also Introduces 150 CC 'ACHIEVER' to Strengthen its Range Of Premium Motorcycles

New Delhi, October 5, 2005: Hero Honda , the 'World No.1' two-wheeler manufacturer, today announced yet another significant milestone in its long and illustrious journey - its first scooter - " Pleasure" . In keeping with its agenda of innovation, Hero Honda also unveiled 'Achiever' , its new offering in the 150 cc segment, further adding muscle to its already strong product portfolio.

Hero Honda, which revolutionized the Indian two-wheeler industry with the first 4-stroke 100 cc motorcycle (CD-100) more than two decades ago, is set to unleash 'Pleasure' in the market by mid-November.

Delighted at the beginning of a new phase in Hero Honda's journey, Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd. , said, "The launch of our first scooter is going to be a momentous occasion for everybody at Hero Honda. With this, we are now ready to extend our services to a wider customer profile. Our first scooter is yet another testimony to the technology support being extended by our joint venture partner to us. We thank them for their support and contribution in making this day a historic day for Hero Honda."

Announcing the dual launches, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd ., said, "The Achiever is our third new motorcycle to be launched during this calendar year. With the exceptional combination of power and fuel-efficiency, which are also the best in the segment, we are confident that Achiever will soon establish itself as the preferred choice of customers and would help in consolidating our position in the premium segment."

Talking about the first Hero Honda scooter, he said, "The scooter segment in India is over one million units and the segment has been witnessing an impressive growth for the past few months. We are confident that with the launch of Hero Honda Pleasure in mid-November, we would be able to carve out a place for ourselves in the industry and also contribute towards its further growth."

One of the most fuel-efficient in the scooter segment, the 100cc Pleasure has distinctive features, including an ABS body, variomatic transmission and high pulling power. It also comes equipped with the tuff-up tube - a technology which offers an immediate remedy in case of a tyre puncture by secreting an a nti-puncture sealant gel. With such diverse features, Pleasure will help Hero Honda cater to a much wider customer base, thereby strengthening its undisputed leadership position in the two-wheeler industry. Self-start will be offered as a standard feature in the scooter.

Pleasure will offer customers a contemporary style and attractive aesthetics through the following features:

In addition to Pleasure, Hero Honda today also introduced its new offering in the 150 cc motorcycle segment - the Hero Honda Achiever. The Achiever promises to deliver a combination of high power of 10kw (13.4 bhp) in its segment, with a high fuel efficiency. Other striking features include:

Both Hero Honda Pleasure and Achiever will be available nationally through the company's existing wide network of dealers. In addition, Pleasure would also be sold through outlets targeted exclusively for women customers at 24 locations covering 20 towns nationally.

While Pleasure will be offered in a wide range of eight attractive colours including Orange , Grey Silver, Aqua Green and Light Purple, the Achiever will be available in seven colours including Magnetic Blue and Spring Violet. Achiever is available in four variants - drum/kick, drum/self, disc/kick, disc/self. There would also be two versions viz. with round headlight and visor with traphezoidal headlight.

The motorcycle is attractively priced starting Rs. 47,900 /- (ex-showroom Delhi ), which is the festive celebration price offer. The price for Pleasure would be announced shortly.

For Further Information please contact:

Sanjiv Singh | Rajni Kumar
Corporate Voice | Weber Shandwick
M: +91-9818430943 | +91-9312501958
E: sanjiv@corvoshandwick.co.in; rajni@corvoshandwick.co.in
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