Hero Honda - Corporate Announcements

New Delhi, July 29, 2008: Hero Honda Motors Ltd (HHML), the world’s largest two-wheeler manufacturer, today reported an impressive bottom line growth to match its robust top line performance during the first quarter (April-June) of the financial year (FY) 2008-09.

Hero Honda reported 44 per cent growth in profit after tax (PAT) at Rs 272.87 crore for the first quarter of this financial year. Hero Honda’s profit after tax in the corresponding period last fiscal (April-June, 2007-08) stood at Rs 189.84 crore.

Total turnover (sales turnover plus other income, net of excise) grew to
Rs. 2890.25 crore, a growth of 16 per cent over Rs 2486.90 crore recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 11.99 per cent in the quarter. The EBIDTA margin in the previous quarter (Jan-March ’07-08) was 14.77 per cent.

This strong financial performance comes close on the heels of the company’s good overall sales through the first quarter. Hero Honda kicked off the new financial year with a 9 per cent growth in sales in the month of April, and followed up with 9.5 per cent growth in May and 16 per cent in June. Indeed, Hero Honda’s share in domestic motorcycle market has been growing upward of 55 per cent.

Hero Honda’s cumulative sales for the first quarter (Q1) this FY stands at 8,94,244 units - a growth of 11 per cent over Q1 last FY (2007-08). Hero Honda had sold 8,02,853 units of two-wheelers in Q1 in the last FY.

The consistent performance comes on account of key Hero Honda brands driving strong volumes across segments – CD Deluxe in entry segment, Glamour, the New Splendor NXG, Splendor + and Passion Plus in deluxe segment and Hunk, CBZ X-treme and Karizma in the premium segment. Hero Honda’s scooter Pleasure has also been contributing to the volumes, with more than 10,000 units being sold in June this year.

According to Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, “This financial year is the 25th year of Hero Honda’s existence. We had a befitting beginning to the year with the inauguration of our new plant at Haridwar in April, which is going to substantially augment our installed capacity. This is a significant step towards our future growth. We remain committed to reach out to our customers across the country, and provide them with quality products. I also wish to thank our customers and all our stakeholders for reposing their faith in us, which is consistently reflected in our top line as well as our bottom line growth.”

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said “We continue to demonstrate leadership performance - profitability in tandem with increasing market share. We have continued to invest in further spreading our distribution network, expanding into new markets in semi-urban, rural and upcountry areas; and in brand building initiatives through our customer focused advertising and leveraging our various properties such as cricket etc – resulting in strong top line growth. Simultaneously, we have continued to focus on all-round efficiency improvement and cost rationalization across the board. This two-pronged strategy has helped us maintain profitability, even as we continue to further consolidate our near 55 per cent share in the domestic motorcycle market.”

The industry, however, is severely impacted with the very high costs of raw materials such as steel, aluminum, copper and rubber; double-digit inflation and the continuing uncertainty over interest rates.

“Even amidst the current industry scenario, our strategy has succeeded in delivering growth and profitability. We will continue to follow our winning strategy to keep up the better-than-industry performance,” Mr. Munjal added.

HERO HONDA REPORTS ROBUST BOTTOM LINE GROWTH IN Q4 TO MATCH ITS BETTER-THAN-INDUSTRY TOP LINE PERFORMANCE

REPORTS NET PROFIT AFTER TAX OF RS 298.70 CRORES & EBIDTA MARGIN AT 53% PER CENT IN Q4

PLANS TO KEEP UP THE GROWTH TRAJECTORY WITH NEW LAUNCHES IN FY'08-09

New Delhi, April 24, 2008: Hero Honda Motors Ltd. (HHML), the world's largest two-wheeler manufacturer for seven consecutive years, today reported a robust bottom line growth to match its impressive top line performance during fourth quarter (January-March) of the financial year 2007-08.

Financial Results for Q4, FY'07-08

Total sales for Q4 stands at 884075 units, growth of 3.28%
Total turnover Rs. 2843.79 crores growth of 5.95 %
Net profit after tax at Rs 298.70 crores, growth of 53%
EBIDTA margin for the quarter 14.77 %

Financial Results for FY'07-08

Total unit sales of 33,37,142 two-wheelers
Total turnover of Rs. 10517 crores
Net profit after tax at Rs. 967.88 crores
Dividend pay out of 950 %
EBIDTA margin for the year 13.06 %
EPS of Rs. 48.47

Riding on the impressive tally of 33,37,142 two-wheelers it sold during the FY, the company reported a Profit after tax of Rs. 967.88 crores in this financial year (detail as per annexure attached) , even as the domestic two-wheeler industry remained sluggish on account of high interest rates and low availability of consumer finance. Hero Honda's sales surpassed its tally of previous year, further boosting its share in the domestic motorcycle market to more than 52 per cent, even as the industry saw a decline in domestic motorcycle sales by 12 per cent and overall two-wheeler sales by seven per cent during the financial year.

In a year which saw new launches and landmark achievements by the company, Hero Honda introduced several successful new models including the 150-cc Hunk in the premium segment, Splendor NXG in the deluxe segment, and refreshed Pleasure in the scooter segment which all went on to drive impressive volumes. The company also achieved the landmark of 20 million (Two Crore) cumulative sales during the year.

Announcing the annual results here today, Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said “It is indeed highly satisfying to report such excellent financial numbers at the end of the financial year. As I have always maintained, our customers are the reason for our success. Our growth story has been driven by the immense faith our customers have reposed in our products. We stand committed to carry on with this approach.”

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd., said “We have been able to improve our profitability in tandem with our increasing market share. All through the year, we have demonstrated a winning top line strategy by consistently gaining market share. Now these financial numbers are reflective of our strong focus on the bottom line and financial discipline. During the year, we have focused on all-round efficiency improvement. Several cost rationalization initiatives were also taken which have yielded excellent results in the improved bottom line.

“However, for the industry as a whole, the steadily rising input costs remain a concern area. The price of steel is at an all-time high, and the prices of other commodities are also on the rise. For more than a year, the industry has also been reeling under very high interest rates and lack of consumer finance. Going forward, we expect the government to address these issues for the industry to be able to make a turnaround,” Mr. Munjal added.

HERO HONDA NET PROFIT ZOOMS 31% TO Rs 275 CRORE IN Q3 (FY 2007-2008)
REPORTS TURNOVER OF Rs. 2795 CRORE
RECORDS EBIDTA OF 13.95%

Q3 Highlights

Corporate performance:

Consolidated over 50% share in the domestic motorcycle market
Reported highest ever sales in a month in October 2007 (365,022 units)
Crossed half a million retail sales in the festive season
Closed calendar year 2007 with sales of over 33 lakh two-wheelers

Achievements:

Retained the coveted position of World No 1 two-wheeler company for the seventh consecutive year
Crossed landmark sales of Two Crore bikes; celebrated the achievement with “Hero Honda BIKE-A-THON”- a nationwide marathon of Hero Honda bikes under the “Hero Honda Country” campaign

New Launches:

Launched two new models Hunk (150cc) & refreshed Splendor+ along with a Special Edition
Doubled volume and share in the premium segment - currently own almost 20% share

New Delhi, January 31, 2008: Hero Honda Motors Ltd. (HHML), the world's largest two-wheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275 crore for the third quarter (October-December) of this financial year (2007-08). Hero Honda's profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore.

Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17 crores, a growth of 3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin in the previous quarter (July-September'07) was 12.39%.

This strong financial performance comes close on the heels of the company's good overall sales even in the face of the prevailing slowdown in the two-wheeler industry. Hero Honda's cumulative total turnover for the first three quarters (April–December 2007) of this financial year stood at Rs. 7673.43 crores.

Hero Honda's strategy for aggressive top line growth through new product launches, brand building initiatives backed by innovative communication has resulted in market share gain across every segment. Indeed, Hero Honda's share in domestic motorcycles market has been growing upward of 50 per cent, despite the slowdown in the two-wheeler industry.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd ., “Our performance during the third quarter of this fiscal has been very encouraging considering the current slowdown in the two-wheeler industry. We have been consistently reporting better-than-industry sales numbers, and it has also been reflected in our bottom line. We wish to thank all our customers and stakeholders for reposing their faith in our company and our products.”

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd . said, “Given the industry slowdown scenario, we are very enthused by our robust financial numbers for the third quarter. However, this was not unexpected. We had undertaken some strategic initiatives since the beginning of this fiscal, including a conscious effort to rationalize costs across the board, and its results are now visible. Our bottom line has seen a consistent improvement, and we have been able to demonstrate that it is possible to keep gaining market share while maintaining a robust bottom line.

“With input costs softening and our sharp focus on cost efficiencies, we should be able to further improve upon our financial results,” he added.

HERO HONDA SET TO REWRITE THE BASICS OF THE PREMIUM SEGMENT
UNVEILS THE ALL MUSCLE, MACHO, 150CC "HUNK", TO AUGMENT ITS GROWING STRENGTH IN PREMIUM SEGMENT

New Delhi , October 17, 2007: The "Hero Honda Hunk" is here. And it is set to re-write the basics in the premium space of the Indian two-wheeler industry.

Hero Honda Motors Ltd (HHML) today augmented its steadily growing strength in the premium segment (150cc and above) by launching a new brand - the 150cc Hunk . Hero Honda has already doubled its volume and share in the premium segment during the period January - September 2007, while the overall share of Hero Honda in the domestic motorcycle market is currently more than 50 per cent.

Unveiling the new bike here, Mr. Brijmohan Lall, Chairman, HHML, said "With the launch of the 'Hunk', we have strengthened our product portfolio in the premium segment, so our customers looking for a higher-powered bike now have a large variety to choose from the Hero Honda stable only. True to our leadership position in the Indian two-wheeler market, we now have range of models in every segment of the market, to meet specific needs and requirements of customers."

Mr. Pawan Munjal, Managing Director and CEO, HHML , said "The 'Hunk' is our tribute to the Youth of India today - confident and ready to take on the world. It personifies the very fighting spirit and resilience of our youngsters, who are making a mark for themselves in their chosen fields of vocation. Some of the key findings of our extensive research amongst the youth have been incorporated into the 'Hunk' to make it a complete package of world class technology, unprecedented features and stunning looks. I am sure there will be many more 'Hunks' on Indian roads soon."

The 'Hunk' will be immediately available for test drives and bookings through the company's wide network of dealers. It would be available commercially by the last week of this month.

With this, Hero Honda now has as many as four strong product offerings in the premium segment to meet all customer requirements within that space. While CBZ X-treme is the sporty, stylish bike, it's the new Achiever with alloy wheels which fits the bill for consumers looking for a stronger bike for commuting purpose. And then within that segment - there's the most aspirational bike on Indian roads - the new Karizma .

A sure-shot head-turner, the Hunk comes with never before features and looks:-

Product highlights:

150cc Engine, delivering raw power of 14.2 BHP @ 8500 RPM and a torque of 12.80 N-m @ even at a low RPM of 6500
Unmatched super acceleration of 0-60 Km ph in flat 5 seconds
New Generation "Advanced Tumble Flow Induction" (ATFI) Technology engine - which delivers the best balance of Fuel efficiency and Power
Advanced Microprocessor Ignition System -"AMI" with Multi Mapping Digital CDI along with "Carburetor controlled Variable Ignition" delivers the optimum Power, quicker throttle response and Fuel efficiency
Unique "Anti-Kick back" device prevents Kick back during starting - convenient, safe and effortless kick start

True to its name, "HUNK" is a Macho & Muscular machine designed for Bikers who love "HUNKY" styling:-

Styling elements:

Large Muscular fuel tank and Aerodynamic Tank Shrouds
Aggressive Visor and Trapezoidal Multi reflector Head light
Muscular Rear Cowls
Classic, 3 pod console with chrome ringed large speedometer
Stylish, Clear lens Multi reflector Indicators
Large & inclined "HUNKY" Muffler
Dual coloured Aircraft type fuel tank cap
Matt Grey engine
5 Spoke black alloy wheels
Raised Rear fender
Contoured Saddle with Pillion seat hump
Chrome finished 3 D " HUNK" Emblem
Contemporary new Fuel Cock
Aluminium Handle Bar holder cover - extra detailing to enhance the solid & macho feel
5 Exciting body colours with 2 new colours - Panther Black and Fighter Blue

Additional features:-

New 5 step adjustable "Gas Reservoir Suspension" - "GRS" for the smoothest and comfortable ride even in extreme rough road conditions.
Puncture resistant Rear Tuff -up Tube.
1325 MM long wheel base for solid stability.
Wide 100 / 90 low aspect ratio Rear tyre.
240 mm front Disc Brakes as standard.
Self Start option.
3 year / 40,000 kms warranty & 6 Free Service - Hero Honda's assurance of Quality and Peace of mind for the user.
New Generation 10W30 SJ Grade, JASO MA Grade Engine oil for longer oil change intervals of 6000 kms - reduced maintenance cost and excellent cold starting ability.

HERO HONDA WORLD NO 1 FOR SIX YEARS IN A ROW

Turnover increases 15% to Rs 2700 crore for Q3 2006-07

Investments in capacity expansion, brand building and new models begin to yield results

New Delhi, January 31, 2007: Hero Honda Motors Ltd., (HHML) which has achieved the unique distinction of being the World No1 two-wheeler company for six consecutive years in terms of unit sales in a calendar year by one single company today announced the financial results for the quarter ending December 31, 2006.

The Company clocked an impressive 896,113 units of two-wheeler sales during Q3¬ 2006-07, more than 12 per cent higher than 798,302 units sold in Q3 of 2005-06. This has resulted in Hero Honda’s market share in two-wheelers going up to 40 per cent from 39.5 per cent in the corresponding quarter previous fiscal. Turnover increased from Rs 2351 crore to Rs 2700 crore, a healthy growth of 15% per cent.

HHML significantly increased its investments in brand building initiatives which helped the company achieve world record dispatch and retail sales in the festive season. This coupled with rising input costs resulted in EBIDTA margin of 11.32% per cent. The profit before tax ( PBT) was Rs. 303.43 crore and profit after Tax ( PAT) was Rs 209.18 crores in Q3 of 2006-07 as compared to Rs 382.72 crore and Rs 261.78 Crores respectively in the corresponding quarter of previous financial year.

Mr. Pawan Munjal, MD and CEO, Hero Honda Motors Ltd., said "in this quarter, Hero Honda crossed significant milestones and received recognition from various quarters. We fulfilled our commitment to our customers by providing the latest technology and styling in our five new products launched in Q3 2006-07. Significant investment in marketing, coupled with current levels of raw material prices have impacted operating margins as we had predicted at the time of Q2 results announcement and subsequently."

Recap of Q3 2006-07
The third quarter of 2006-07 witnessed significant action at Hero Honda - a new manufacturing facility, world record sales figures, an array of new launches across segments and recognition received from industry experts for innovations in product design and technology. In Q3 2006-07, the company aggressively focused on gaining market share via topline growth.

Record Sales Numbers
Posted World record dispatch sales of 3.63 lakhs and retail sales of over 5.31 lakhs in October 2006.

Exciting New Products
Aggressive products launch strategy for increased market share across segments. Launch of five exciting new offerings in Q3:

Premium segment: CBZ X-treme set new standards in product design and performance in the 150cc premium segment. An exciting offering targeted at today’s youth, the fastest 150cc on Indian roads, has received a very encouraging market response and will positively impact HHML’s share in the premium segment. The bike walked away with majority of the auto awards in this category.
Executive segment: Two best-sellers from HHML in their new avatar have captured the imagination of the market. These are the special festival edition of Passion Plus and the new Glamour with alloy wheels.
Entry segment: CD Delux and CD Dawn with all new engine and features and specifications customized for Indian conditions, have strengthened the company’s presence in the entry segment.

Capacity expansion to consolidate leadership

State-of-the-art capacity expansion completed in existing manufacturing plants
New manufacturing facility at Haridwar in Uttarakhand (Uttaranchal) coming up at fast pace, to start operation by the middle of this year with an initial capacity of 500,000

Aggressive initiatives in marketing and brand building

ICC Champions Trophy
Hero Honda Indian Golf
Hero Honda ITA Awards
Hero Honda Star Screen Awards
Hero Honda Sa Re Ga Ma

Awards and accolades

Hero Honda named amongst the top 10 companies in India by the Asia 200 Leadership Report by the Wall Street Journal Asia
CBZ X-treme – Bike of the Year 2007 – BS Motoring
                        Bike of the Year 2007 - Overdrive Magazine
                        Bike of the Year - NDTV Profit Bike India & Car India Awards
                        Bike of the Year (150 cc) NDTV Profit Bike India & Car India
Programmed fuel injection ( PGMFI ) – Bike Technology of the Year 2007
CD Delux – No 1 standard motorcycle – TNS Voice of the customer Awards 2006
Splendor + - No 1 Executive motorcycle - TNS Voice of the customer Awards 2006
Pleasure – No 1 Un-geared scooter- TNS Voice of the customer Awards 2006
Hero Honda – TNS Most Trusted Company 2006

Hero Honda announces launch of 2 New Models Passion Plus Limited Edition & The New Glamour with alloy wheels

Reports Turnover of Rs. 2289 Crore for Q2 2006 - 07

Named amongst Top 10 companies in India by Wall Street Journal Asia

New Delhi, October 25, 2006 : Close on the heels of the new CBZ X-treme hitting the roads, Hero Honda Motors Ltd., the world's largest manufacturer of two-wheelers, today announced the launch of two new variants - the new Glamour and Passion Plus Limited Edition. The new launches were announced on the sidelines of the meeting of the Company's Board of Directors here today for the financial results for the second quarter 2006-07.

Meanwhile, Hero Honda was the only two-wheeler Company named amongst the top 10 Companies in India by the Asia 200 Leadership Report by the Wall Street Journal Asia, reinforcing the Company's market leadership. Judged on the parameters of reputation, financial soundness, innovation, long-term vision and quality of products and services, Hero Honda has been placed overall 7 th in the rankings by the prestigious report.

In the second quarter (July 06 - Sept. 06) for financial year 2006-07, Hero Honda posted turnover of Rs. 2289 crore, as compared to Rs. 2209 crore in the corresponding quarter last year.

According to Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, "Hero Honda continues on its planned growth path. The launch of the four new models will positively impact our topline growth. The company has increased investments in brand building which will help the company achieve long term market growth and further consolidate its leadership position."

The company posted a net profit (PAT) of Rs. 216 crore for the quarter as against Rs. 238 crore for the same period last year. In this second quarter (July 06- Sept 06), Company has achieved EBIDTA margin of 13%.

Commenting on the same, Mr. Munjal said, "the impact on operating margins has been due to increased inflationary costs in raw materials - steel, aluminum and rubber etc. The company has significantly countered this increase in raw material cost through improved efficiencies in production and cost management", he added.

Hero Honda has recently undertaken a slew of initiatives in various fronts to consolidate its market share, with new product launches, augmenting capacity and innovative consumer campaigns. The Prime Minister Dr. Manmohan Singh last week laid the foundation stone of the Company's new manufacturing plant in Haridwar, Uttaranchal. The plant will be operational by the middle of 2007 with an initial capacity of 500,000 units. This will further augment the existing installed capacity of the Company.
Passion Plus is a very important model for the company with significant sales contribution, next only to Splendor. The new Passion Plus Limited Edition restates its position as the original style bike, and the initiative has been backed by strong communication through a new TVC. Hero Honda Glamour is being refreshed with stylish 5-spoke alloy wheels. Both these new models will further enhance sales growth for Hero Honda in the deluxe segment where it enjoys clear leadership position.

During the quarter, Hero Honda launched CBZ X-treme, which was supported by innovative and high-visibility print and TV campaigns, along with on-ground activation. The pre-launch teasers on television built up the expectation for the new bike, and received a very enthusiastic response from the youth. Hero Honda has witnessed an excellent market response during the festive season for all its models. The Glamour FI, which was launched in June, has exceeded sales expectations. The CBZ X-treme, with its unique combination of design and first time features will help the company achieve strong growth in the premium segment. This takes the tally of new models launched so far by Hero Honda this fiscal to four. These new models, coupled with the 4 new launches planned during this fiscal will help Hero Honda achieve strong topline growth and aggressively consolidate its market leadership across all segments.

During the quarter, the company sold 751,967 two-wheelers, including 21,703 scooters.

In Q2, the company also signed on 2 new brand ambassadors, promising Indian cricketers Irfan Pathan and Suresh Raina to leverage their mass appeal with the Indian youth. These brand ambassadors stand for the brand attributes of Hero Honda - performance, passion, commitment and winning, and the company will actively use their services to promote the brand and the exciting new models yet to be launched in the market. Both Irfan and Raina feature in Hero Honda's ongoing campaign "Heroes for Heroes", as part of which the "Mobike Pe Mobile " initiative has been rolled out for customers.

Hon'ble Prime Minister Dr. Manmohan Singh lays foundation stone of Hero Honda's Haridwar plant

Hero Honda's state-of-the-art manufacturing plant to be operational by mid-2007
Hero Honda and its ancillaries to generate direct employment opportunities for 7,000 people in Uttaranchal and contribute to the economic development of the state
Initial production capacity of 500,000 units by mid-2007, with an investment of Rs. 400 crore
Capacity to be expanded to 1.5 million units by 2010, with a combined investment of Rs. 1,900 crore by Hero Honda & its ancillaries
Company is moving with 80 Tier I and Tier II suppliers to ensure local availability of parts

Haridwar, October 19, 2006 : Hon'ble Prime Minister of India, Dr. Manmohan Singh today laid the foundation stone of Hero Honda's Haridwar plant at a glittering ceremony at the plant site. The momentous occasion was also graced by Sh. N D Tiwari, Hon'ble Chief Minister of Uttaranchal, Sh. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., Sh. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., senior government officials and other dignitaries.

The upcoming state-of-the-art manufacturing plant of Hero Honda, the World's largest two-wheeler company, is located in the Integrated Industrial Estate in Haridwar, developed by SIDCUL (State Industrial Development Corporation of Uttaranchal Ltd.). The Hero Honda plant and its main ancillaries will be located on a 275 acre plot in the prime area of the industrial estate. The plant will be operational by the middle of 2007 with an initial production capacity of 5,00,000 units, at an investment of approximately Rs. 400 crores.

Hero Honda has always been known to bring about significant improvement in the life of the community as a whole, through its Corporate Social Responsibility (CSR) initiatives, such as Healthcare, Education, and Vocational training. The company will undertake similar initiatives in Uttaranchal, thereby improving the lives of the community at large. As the company grows its operations in Uttaranchal, the infrastructure development would attract more entrepreneurs and business firms, resulting in creation of an industrial cluster which will multiply generation of wealth and prosperity in the region.

The new plant in Haridwar will have flexible production for all models in the Hero Honda portfolio, including the recently launched 150 cc stunner CBZ X-treme and the most advanced Fuel-injection based Glamour FI. In addition to manufacturing for the domestic market, the company also aims to use the new plant to cater to export requirements.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., "The Hero Honda family is extremely grateful to our Hon'ble Prime Minister for gracing this very momentous occasion in the illustrious journey of Hero Honda. From setting up of its first plant in Dharuhera in 1984-85, to this new plant in Haridwar, Hero Honda has achieved many milestones, including the prestigious landmark of being the world's leading two-wheeler company and achieving the highest levels of production efficiency. Keeping in line with our philosophy of contributing to the growth of the Indian economy, the new plant will help generate direct employment opportunities for over 7,000 people in and around the region."

Speaking on the occasion, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said , "Hero Honda's new plant will set new benchmarks in terms of lay-outs, processes, supply chain management and human resource management. With the new plant, we will strive to create a center of excellence for the manufacturing industry in the country.

"Hero Honda has an aggressive strategy of growth in the domestic and export markets. We have already announced 8 new models this year. The CBZ X-treme was the second exciting launch of this year after the Glamour FI, and we will be launching 5 more exciting models in this fiscal. These new models will offer our customers an unparalleled range of state-of-the-art two-wheelers with the world's best technology, latest designs and many exciting new features," he added.

The company has already announced an expansion in its existing plants in Gurgaon and Dharuhera by an additional 9,00,000 units. The new plant will help the company achieve an annual production capacity of 4.4 million units by the middle of 2007.

By 2010, Hero Honda and its ancillaries will invest Rs. 1900 crore in the new plant, achieving a capacity expansion to 1.5 million units, thereby enabling the company to cater to future market demand and consolidate its market leadership.

The location has been chosen taking into consideration a number of factors, including the existing support infrastructure available and the tax sops offered by Government for setting up manufacturing units in the hill states. These sops include a 100% excise exemption for 10 years and 100% Income Tax exemption for the first 5 years and 30% for the next 5 years, amongst other benefits. These tax benefits will help the company to significantly improve operating margins.

Hero Honda has strategically chosen the new plant location in Haridwar, Uttranchal which is today, one of the fastest growing States in India . The State has made tremendous progress in the infrastructure sector on all fronts - power, roads, telecommunication, information technology, water supply among others. Hero Honda aims to assist in the economic development of the state through its new plant in Haridwar.

Hero Honda conferred with “Dun & Bradstreet – American Express Corporate Award 2006” as India’s Top Company in Automobiles (Two-Wheelers) Sector

New Delhi, August 18, 2006: Hero Honda Motors Ltd., the 'World No.1' two-wheeler company has been conferred the prestigious " Dun & Bradstreet - American Express Corporate Awards 2006" as India's Top Company in the Automobiles - Two-Wheelers sector.

The Dun & Bradstreet - American Express Corporate Awards 2006 seek to recognize the twin virtues of size and growth in organizations in corporate India . The awards event is closely tied to the premier Dun & Bradstreet India (D&B India) publication, India's Top 500 Companies 2006 . The Dun & Bradstreet - American Express Corporate Awards 2006 for respective sectors were decided from amongst these top 500 companies in the country. The seven parameters considered in ranking companies for awards were Total Income, Net Profit, Net Worth, Net Profit Margin, Net Profit/Net Worth, Growth in Total Income and Growth in Net Profit.

Receiving the award at a glittering ceremony in Mumbai, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said , "This award is recognition of the outstanding growth Hero Honda has had over the years. The Company's phenomenal success in redefining the two-wheeler industry in the country has been possible mainly due to the unstinted trust that our customers, dealer friends, joint venture partners, shareholders and all other stake holders have reposed on us. Indeed, this award goes a long way in endorsing the huge success that Hero Honda has achieved through its value-based, customer-centric initiatives and world class technological innovations".

Mr. Munjal particularly recognized the efforts of Dun & Bradstreet and American Express, and congratulated them on the successful launch of the Corporate Awards and the release of the premier publication " India 's Top 500 companies" .

Since inception, Hero Honda has been committed to deliver value proposition to its customers. This year, Hero Honda achieved the distinction of being the world's largest two-wheeler company for the 5th consecutive year. The company also achieved the record setting cumulative figure of 15 million two-wheelers in March 2006. In the past years the company has consistently delivered highest possible returns to its shareholders and has been recognized for the same.

HERO HONDA & ANCILLARIES TO INVEST RS. 1900 CRORES IN NEW PLANT IN HARIDWAR, UTTARANCHAL

To commence operation from May 2007, with initial capacity of 5,00,000 units
New plant capacity will be expanded to 1.5 million units by 2010
275 acre industrial plot for Hero Honda and its ancillaries
Company to benefit from attractive tax sops offered by the Government.

New Delhi, August 8, 2006… Hero Honda, the Worlds largest two-wheeler company, today announced its new plant in the Integrated Industrial Estate in Haridwar, developed by SIDCUL (State Industrial Development Corporation of Uttaranchal Ltd.). The Hero Honda plant and its main ancillaries will be located on a 275 acre plot in the prime area of the industrial estate. The plant will be operational by May 2007 with an initial production capacity of 5,00,000 units, at an investment of approximately Rs. 300 crores. By 2010, Hero Honda and its ancillaries will invest Rs. 1900 crore in the new plant, achieving a capacity expansion to 1.5 million units, thereby enabling the company to cater to future market demand and consolidate its market leadership. Hero Honda has received the letter of allotment from the Uttaranchal Government.

The location has been chosen taking into consideration a number of factors, including the existing support infrastructure available and the tax sops offered by Government for setting up manufacturing units in the hill states. These sops include a 100% excise exemption for 10 years and 100% Income Tax exemption for the first 5 years and 30% for the next 5 years, amongst other benefits. These tax benefits will benefit the company to significantly improve operating margins.

The new plant in Haridwar will have flexible production for all models in the Hero Honda portfolio including its highly successful model, Splendor. In addition to manufacturing for the domestic market, the company also aims to use the new plant to cater to export requirements.

The company has already announced an expansion in its existing plants in Gurgaon and Dharuhera by an additional 9,00,000 units, to be completed this month. The new plant will help the company achieve an annual production capacity of 4.4 million units by May 2007.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., “Today’s announcement is an important landmark in the illustrious history of Hero Honda. It has been a long and fruitful journey for Hero Honda, from setting up of its first plant in Dharuhera, to this new plant in Haridwar. Along the way we have achieved many milestones, including the prestigious landmark of being the world’s leading two-wheeler company and achieving the highest levels of production efficiency. The additional capacity will cater to market requirements till 2010, thereby helping Hero Honda consolidate its market leadership. Keeping in line with our philosophy of contributing to the growth of the Indian economy, the new plant will help generate substantial employment opportunities for the people in and around the region.”

Speaking on the occasion, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said, “Hero Honda has an aggressive strategy of consolidating market leadership through growth in the domestic and export markets. We will be launching 7 new models this year and have similar plans for the future, to offer customers an unparalleled range of state-of-the-art two-wheelers that will offer the world’s best technology, latest design options and many exciting new features, which will be introduced for the first time in the Indian market. Apart from producing the current models, the new plant will be used by the company for the production of its new models. Hero Honda views India as a strong growth market for two-wheelers and the new plant will play a vital role in realizing our growth vision.”

Hero Honda has had a track record of building world-class two-wheeler plants. Both its facilities in Gurgaon and Dharuhera are technological marvels with state-of-the-art machineries. The new plant in Haridwar will continue this tradition and surpass technological capabilities of the current plants.

HERO HONDA ANNOUNCES PRICE INCREASE
- Price increase ranges between Rs. 500 – Rs. 1000

New Delhi, July 31st, 2006: Hero Honda, the ‘World’s No.1’ two-wheeler company, today announced a marginal increase in prices of their motorcycles. This decision has primarily been taken to compensate for the increased inflationary costs in raw materials - steel, aluminum and rubber. The new price revisions will be effective from August 1, 2006 and will positively impact the company’s operating margins.

The price increase ranges between Rs. 500 – Rs. 1000 across various models. The company has increased the price of Hero Honda CD Dawn by Rs. 1000. Prices of Hero Honda Splendor +, Hero Honda Passion Plus and Hero Honda Achiever have been increased by Rs. 750. A price increase of Rs. 500 will be adopted on Hero Honda Super Splendor. Hero Honda Pleasure and Glamour will be available at their current showroom price in all zones.

Commenting on the prices increase Mr. Pawan Munjal, Managing Director, Hero Honda Motors, stated, “Basis our philosophy of offering the best value for money to our customers, Hero Honda has resisted passing on the increased raw material costs to customers for some time. However, the substantial increase in the prices of steel, aluminum and rubber was impacting our operating margins. To offset the increase in raw material costs we have announced a marginal price increase. This will positively impact our operating margins for the remaining quarters.”

Hero Honda Splendor declared “Most Preferred Two-Wheeler Brand” once again

Conferred ‘Awaaz Consumer Award’ for the second consecutive year

Hero Honda leads the two-wheeler category with its largest selling bike brand – Splendor.

New Delhi , July 18 th , 2006: Hero Honda Splendor was conferred the " Awaaz Consumer Award 2006 " for the ' Most Preferred Two Wheeler Brand' in India . The award was handed over at a glittering ceremony to Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. This is the second year when 'Awaaz Consumer Awards' have rated Splendor to be the ' Most Preferred Two-Wheeler Brand' in India . This award reiterates Hero Honda's customers' faith and loyalty in the company's product.

Splendor has set a precedent in the two-wheeler industry and received many recognitions and accolades including being the world's single largest selling motorcycle brand for the past five years. T he cumulative sales of the Splendor family - Splendor, Splendor+, Super Splendor - has crossed the 7 million mark.

'The Most Preferred Brands Survey' is a comprehensive study by TV18 in partnership with AC Nielson ORG-MARG Pvt. Ltd. This survey was initiated to find India 's most preferred consumer brands in different categories. In this survey, Hero Honda leads the two-wheeler category with its largest selling bike brand - Splendor .

On this momentous occasion Mr. Pawan Munjal, Managing Director, Hero Honda Motors, said , " We at Hero Honda constantly strive to provide the best quality and value for money products to our customers. Since the inception of the company, we have adopted a customer driven approach for all our initiatives. It is stimulating to know that we have again succeeded in earning the trust and loyalty of the consumers. Splendor is India 's and indeed the world's largest selling single brand. This award is an endorsement of the customer centric work being done at Hero Honda". Mr. Munjal particularly recognized the efforts of TV 18 and AC Nielson ORG MARG and congratulated them on a successful roll-out of the 'Awaaz Consumer Award' for the second year.

Hero Honda Reports 21 % Jump In Sales Volume For Q1 2006 - 07

Total turnover up by 20%

New Delhi, July 11th, 2006….Hero Honda Motors Ltd., the ‘World No.1’ two-wheeler company for the fifth consecutive year, today announced their financial results for the first quarter (April - June) of 2006.

The two-wheeler sales for the period April - June 2006 continued to demonstrate encouraging performance as the sales volume grew by 21%, as compared with the corresponding period in the FY 2005-06. The company sold 8,32,692 two-wheelers in Q1 FY 2006-07. A total of 8,10,592 motorcycles were sold in the quarter, significantly up from 6,87,567 units sold during April-June ’05. The company sold 22100 of scooters, which was launched early this year.

The company reported a Net Profit of Rs. 238 crores, as against Rs. 204 crores in the corresponding period last year. Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 2417 crores, a growth of 20% over Rs. 2008 crores recorded in the corresponding period last year.

The company continued to provide better performance and posted a healthy growth rate in volume sales, despite increased inflationary costs in raw materials - steel, aluminum and rubber, which has had a short-term impact on the operating margins and net profit. The company has countered this increase in raw material cost through improved efficiencies in production and cost management.

Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., said, “Hero Honda continued to grow consistently in the first quarter of 2006-07 with the support of our business partners and customers. We would also like to thank our partner Honda Motor Co. Ltd. for providing the futuristic Fuel-Injection two-wheeler technology for the first time in India”. He further added, “We are committed to delivering the highest returns to our shareholders. This quarter has witnessed a number of industry firsts from Hero Honda, including the launch of India’s first Fuel Injection motorcycle technology - the 125cc Hero Honda Glamour FI. Hero Honda Super Splendor continues to showcase an excellent response from the market and delivered excellent sales growth in this quarter “

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, “Hero Honda continues on its robust growth path. We have announced several initiatives in this quarter to consolidate our market leadership including 8 new launches planned for 2006, capacity expansion in existing plants at Gurgaon and Dharuhera by 4,50,000 units each, which will be completed by August 2006 and will increase our product capacity to 3.9 million units for this year. In this quarter, we also announced the setting up Hero Honda’s third plant with a production capacity of 5,00,000 units, which will cater to market demand beyond 2007. Basis its philosophy of offering the best value for money to its customers, Hero Honda has not passed on the increased raw material costs to its customers. However, in the past months there has been a substantial increase in the prices of steel, aluminum and rubber, and we will shortly be announcing a price increase in certain models to offset the increase in raw material costs.”

For the period Jan-June 2006, Hero Honda continued its upswing, in terms of volume sales, recording month over month growth. The company achieved a total volume sale of 15,64,584 motorcycles during the period, as compared with 13,72,986 motorcycles during the corresponding period in the previous financial year. This translates into a significant jump of 14% over the first half of calendar year 2005.

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HERO HONDA REINFORCES TECHNOLOGY LEADERSHIP WITH INDIA’S FIRST FUEL INJECTION MOTORCYCLE TECHNOLOGY

Hero Honda Glamour FI will feature Honda’s first 125 cc PGM-FI Engine (Programmed Fuel Injection).

Programmed Electronic Fuel Injection (PGM – FI) for the best drivability & lesser gear changes in traffic
Real time Mileage indicator (RTMI) for achieving optimum mileage
Bank Angle Sensor – Cuts off fuel supply in case of a tip over - an industry first safety feature
Lowest Emissions – will meet even the most stringent emission norms of the future
No carburetor – less maintenance
Starts easily in all weather conditions – even in very low temperatures

New Delhi, June 26th, 2006: Hero Honda Motors Ltd., the ‘World No.1' two-wheeler company, today announced the launch of India's first Fuel Injection technology for two-wheelers, with the 125 cc Glamour FI. The new technology eliminates the need for a carburetor, offers the most comfortable drive and the lowest emissions, in addition to a host of other features, which will be available for the first time to Indian two-wheeler riders. The Glamour FI will be launched in 2 variants – Drum Kick at Rs. 49,990/- and the fully loaded Disc Self at Rs. 53,990, ex-showroom Delhi . and will be available in 60 towns at over 180 Hero Honda dealerships throughout the country. Hero Honda plans on extending the Fuel Injection technology to other models gradually.

Glamour FI, based on stylish 125cc motorcycle Glamour, has better fuel efficiency and ease of engine start, due to the effect of PGM-FI. Riders can view the digital real-time fuel economy indicator situated at meter face, to know the bike's fuel efficiency at any given point of time. Its design is more refined, with its engine integrated with black color and its unique FI logo.

Speaking on this momentous occasion, Mr. Brijmohan Lall, Chairman, Hero Honda Motors said, “The Hero Honda family is elated to have set yet another precedent in the Indian two-wheeler industry. Fuel Injection Technology has till now been used in cars and is being introduced in two wheelers for the very first time in India by Hero Honda, with the help of Honda Motor Company. This is the technology of the future for all two-wheelers and we feel privileged to be the first company to offer this technology in India , with the launch of the Glamour FI.”

According to Mr. Pawan Munjal, Managing Director, Hero Honda Motors , “Today's launch reiterates Hero Honda's superior technological edge and pedigree of bringing world class technology to India . Through the years, we have successfully endeavored to deliver the best value proposition to our customers and we will continue to provide them with products that incorporate the most advanced technology, design and fuel-efficiency”.

The Glamour FI has a distinctive PGM - FI feature (Programmed Fuel Injection) , a first in two-wheelers. This is an intelligent computer controlled electronic fuel injection system which scans critical engine operating conditions through sensors and provides input to the Electronic Control Unit (ECU) to inject the accurate amount of fuel as per the requirement. The sensors include - throttle position, engine operating temperature, intake air temperature, manifold absolute air pressure and crank angle.

Offers improved fuel efficiency & better emission performance
Excellent drivability owing to quick throttle response
Excellent cold starting ability (no choke operation)
Consistent engine performance at varying altitudes and ambience temperature
Ability to run the bike at lower speeds on top gear without engine knocking that translates into less gear changes in congested traffic conditions.
No starting problems after long storage periods.

The RTMI takes input on distance travelled and fuel consumed from the speed sensor and ECU and displays the average mileage for the preceding 10 seconds.

Enables the rider to know the "Real Time Mileage"
Provides an opportunity to adjust riding style to get the optimum mileage

The Glamour FI has a Bank Angle Sensor , an industry first feature, is an important safety feature which cuts off the fuel supply & ignition if the bike tips over (falls). Apart from these the motorcycle has a FI Malfunction Indicator Lamp which diagnoses any malfunction of sensors and indicates the same to the rider and a LCD Fuel Gauge displays fuel level in the fuel tank which is easy to read and contemporary. Apart from the new FI technology, Hero Honda's Glamour also showcases new body coloured grab rail and rear view mirrors.

The overall two-wheeler market in India has been growing rapidly, reaching approximately 7,300,000 units in 2005, a 15% increase from 2004. The market is expected to grow further in 2006, up to approximately 8,500,000 units, a 17% increase from 2005.

Hero Honda Motors was incorporated in 1984 as a joint venture between Honda Motor Company and the Hero Group. Hero Honda began production of motorcycle in 1985. Its annual capacity of production at the moment is 3,450,000 units together with its first plant in Dalhera and the second in Gurgaon. This September, the annual capacity of production in the first plant in Dalhera will be expanded to 1,950,000 units from 1,500,000 units by adding a new line. Moreover, its annual capacity will increase to 4,400,000 units in 2007 when the third plant with 500,000 units of annual capacity of production will be constructed.

Hero Honda's product range includes successful motorcycles that have redefined the Indian motorcycle market: Hero Honda Super Splendor, Hero Honda Glamour; Hero Honda Karizma; Hero Honda Passion Plus; Hero Honda Splendor +, Hero Honda CD Deluxe, Hero Honda CD Dawn and Hero Honda Achiever. Hero Honda Splendor is the largest selling motorcycle brand in the world. The company recently ventured into the scooter market with launch of Hero Honda Pleasure, which has been very well received in the market.

HRITHIK ROSHAN TO RIDE HERO HONDA'S 15 MILLIONTH BIKE IT'S A STUNNING ALL-CHROME KARIZMA

Hero Honda achieves Fastest 15 Million in a span of 21 years

New Delhi, June 8, 2006: Hero Honda, the world's largest two wheeler manufacturer, today presented its 15 Millionth bike - a special ‘All – Chrome' Karizma to Hero Honda Brand Ambassador and superstar Hrithik Roshan. The keys to this very special bike were handed over to Hrithik by Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., at a special function organised in the capital today.

Speaking on this momentous occasion Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd., said, “The Hero Honda family is elated to have achieved the landmark figure of 15 million motorcycles in the shortest ever time-span. To celebrate this occasion, our R&D team has created a very special 15 millionth motorcycle - the customised all-chrome Karizma, a very stylish bike that truly befits our brand ambassador and style icon Hrithik Roshan.”

He further added, “This achievement is a reflection of the success of our vehicles, which truly offer customers a combination of the most advanced technology, latest innovative designs and unmatched fuel-efficiency. We are very pleased that Hero Honda has been successful in setting new benchmarks for the global two-wheeler industry. This year, Hero Honda will be launching 8 exciting new products to consolidate our market leadership”.

Hero Honda achieved the cumulative figure of 15 million two-wheelers in March 2006, in the shortest span of 21 years. The company has recently announced its third plant in Jaipur, which will be set up in Jaipur with an investment of Rs. 320 crore and will be commissioned in a year. Capacity expansion of 900,000 units has also been undertaken in the company's exiting plants with an investment of Rs. 141 crore.

During its illustrious history of offering the best value-for-money to its customers, Hero Honda has consistently focused on technology innovation in design and manufacture, while setting benchmarks in product quality, market execution and customer satisfaction. In 2006, the company achieved the distinction of being the world's largest motorcycle manufacturer for the fifth year in a row.

Hero Honda's product range includes successful motorcycles that have redefined the Indian motorcycle market: Hero Honda Super Splendor, Hero Honda Glamour; Hero Honda Karizma; Hero Honda Passion Plus; Hero Honda Splendour Plus, Hero Honda CD Deluxe, Hero Honda CD Dawn and Hero Honda Achiever. Hero Honda Splendour is the largest selling motorcycle brand in the world. The company recently ventured into the scooter market with launch of Hero Honda Pleasure.

HERO HONDA LAUNCHES "Just4her"
THE FIRST AND EXCLUSIVE SHOWROOM FOR WOMEN
CUSTOMERS FOR ITS FIRST SCOOTER - 'PLEASURE'
IN DELHI

• 22 exclusive 'Just4her' scooter showrooms and workshops being opened across the country

• Introduces 'Lady Rider Club' - an exclusive women's club; a first in the automobile industry

• Product features - 100cc variomatic; light body; soft colours; self-start as standard, etc. - designed keeping women riders in mind

• Warranty of 2 years and 24,000 kms on Hero Honda Pleasure

New Delhi, January 20, 2006: Hero Honda , the company recognized as the 'World No.1' two-wheeler manufacturer for five consecutive years, today announced yet another significant milestone in its long and illustrious journey.

The company, credited with several industry firsts to its credit, has once again pioneered a unique concept in product distribution for its first scooter, "Pleasure". The company today launched "Just4her", the first exclusive showroom for women customers of "Pleasure" in Delhi . The showroom here was inaugurated by Mr. Pawan Munjal , Managing Director of Hero Honda Motors Ltd., and Ms. Priyanka Chopra , popular Bollywood actor and former Miss World.

Hero Honda is opening 22 "Just4her" outlets for Pleasure across the country, exclusively for women customers. These exclusive outlets will offer special facilities to women customers, besides exuding warmth and service assurance to them.

Apart from female service supervisors and sales executives for attending to women customers, 'Just4her' outlets will also provide 'Anytime' pick-up and emergency service on a 12 hr basis. Additionally, if the actual user of the scooter is a female, she will be eligible to join the Lady Rider Programme - the first ever women's club initiated in the industry. The Lady Rider Club will offer special benefits to its members including milestone rewards, personal accident insurance, participation in Winner of the Month and invitation to special events, among others.

Delighted at the beginning of a new phase in Hero Honda's journey, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. , said, "The launch of our first scooter is a momentous occasion for everybody at Hero Honda. The scooter segment in India is over one million units and the segment has been witnessing an impressive growth for the past few months. Further, there is a huge untapped segment of women customers, which offers immense growth potential. With this launch, we are now ready to extend our products and services to this vast customer profile."

Talking about the unique concept of 'Just4her', he added, "Women customers need to be handled more delicately. That is why we are making special efforts to ensure that they feel comfortable visiting our showrooms both during the purchase process and thereafter. It's going to be unique experience when they visit our 'Just4her' showrooms."

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. Its light and zippy body has been designed specially for women customers.

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

multi-reflector headlight;
body-coloured mirrors;
multi-reflector winkers beautifully nestled in the front;
new age oval-shaped instrument panel;
aluminium cast rear grip,
stylish muffler
modern tail-light cluster;
broader seat for comfortable riding;
light-weight body;
more-than-sufficient luggage space
hook and glove box for extra utility

Hero Honda Pleasure will be available nationally through the company's existing wide network of dealers, in addition to the 22 exclusive 'Just4her' Scooter outlets in 20 towns.

Pleasure will be offered in a wide range of eight attractive colours including Orange ,Grey Silver, Aqua Green and Light Purple.

The scooter is attractively priced at Rs. 36,240/- ex-showroom Delhi .

HERO HONDA MAKES A CLEAN SWEEP
AT THE NDTV PROFIT CAR AND BIKE AWARDS
WITH FIVE PRESTIGIOUS WINS

Hero Honda Awarded Bike Maker Of The Year
Glamour, Achiever Rated Top Bikes In Their Respective Segments
NDTV Viewers Choice Award Goes To Hero Honda Glamour

New Delhi, January 14, 2006: Hero Honda Motors Ltd., which recently retained its World No 1 two-wheeler manufacturer position for the fifth consecutive year, made a clean sweep of the "NDTV Profit Car & Bike Awards 2006", winning top awards in the two-wheeler category.

While Hero Honda was adjudged the 'Bike Maker of the Year' , "Achiever" the new 150-cc offering from the company was adjudged the "Bike of the Year" at a glittering ceremony held here last evening.

The jury comprising eminent motor experts, writers and automobile enthusiasts adjudged Hero Honda's Glamour as the 'Bike of the Year' in up to 125 cc category . ' Bike of the Year up to 150 cc' went to Hero Honda's Achiever , the company's latest addition in its vast portfolio of products.

The most coveted amongst these awards was the 'NDTV viewers' choice award in the bike category' that was awarded to Hero Honda "Glamour". This award truly exemplifies the customers' enduring trust and faith in the company.

Accepting the awards, Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd. said "we are delighted to get the NDTV Profit Car and Bike Awards. We take it as an acknowledgement of Hero Honda's excellent overall performance during the year in terms of products, sales, customer care, innovation and profitability."

Earlier this week at the CNBC TV 18 Awards, Hero Honda Splendor was also rated the best bike company in terms of Total Customer Satisfaction, by leading research agency TNS.

HERO HONDA IS 'WORLD NO. 1' TWO-WHEELER MANUFACTURER
FOR 5th CONSECUTIVE YEAR

Hero Honda's Sales Volume Escalates 123% in 5 years
Closes the year with sales of over 29 lakh motorcycles

New Delhi, January 10, 2006: Hero Honda , the company recognized and respected globally as the world's largest two-wheeler manufacturer, has reached another momentous milestone in its not-so-long journey. The company has retained the coveted position of 'World No.1' for five years in a row by selling record number of motorcycles during the calendar year 2005. As a corollary to this milestone, the company has further consolidated its leadership position in the Indian two-wheeler industry.

Hero Honda sold a total of over 29 lakh motorcycles during the calendar year 2005, a magnificent jump from 13,00,899 motorcycles sold in 2001 - the year Hero Honda took over as the world leader for the first time. Over the past five years, the company's sales have escalated 123%, reflecting the company's superb performance. In the process, the company has also outdone its own record of 25,28,699 motorcycles, set in the calendar year 2004.

On this landmark occasion, Mr. Brijmohan Lall, Chairman, Hero Honda Motors said "It is our customer focused approach which had helped us achieve this milestone four years back and it is the same approach which has helped us retain this position all these years. We thank our partner - Honda Motor Co., Japan , all our dealers, vendors and suppliers, as well as the entire Hero Honda team, whose combined efforts can be credited with this landmark achievement. We assure our customers as well as partners that we will continue to move forward with this same goal in mind."

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd said "As the market leader, we have consistently brought innovations for our customers, in product development, distribution and after-sale service and in customer relationship management (CRM). All these initiatives have helped us retain the World No. 1 position for the fifth consecutive year. We will continue to provide value-for-money world class products to our customers."

Hero Honda's retention of the 'World No.1' position is also a reflection of the successful performance of the company's models launched during 2005. The company had introduced three new motorcycle models during the year - Super Splendor, Glamour and Achiever. Super Splendor and Glamour marked the company's entry into the 125 cc segment, the segment fast gaining popularity in the Indian two-wheeler industry. Achiever, Hero Honda's 150 cc model has helped strengthen Hero Honda's position in the premium segment. 2005 also marked Hero Honda's much-awaited entry into the scooter segment. The company introduced its first scooter model - Pleasure to the Indian customers. The model will be available in the market shortly.

Despite increasing competition in the two-wheeler market and rising input costs, the company has continued to demonstrate consistent performance over the past five years.

HERO HONDA ACCOMPLISHES A HISTORIC MILESTONE
'WORLD NO. 1' FOR THE 5TH YEAR IN A ROW

• Volume grows by 15.3% in CY 2004-05

• 5 new products launched in 2005

New Delhi , January 2006: Hero Honda, the largest player in the motorcycle industry in India has achieved another momentous milestone. Despite cut-throat competition in the industry, Hero Honda managed to stay ahead and emerge as the World No. 1 for the 5 th year in a row.

On this landmark occasion, Mr. Brijmohan Lall, Chairman- Hero Honda Motors said "this achievement consolidates Hero Honda's market leadership position. It gives me great pride and satisfaction to see the formidable position that Hero Honda has attained over the years. This is evident from the fact that we have retained the World No. 1 title for 5 years in a row. Our present landmark sales is the testimony of our customers' continued faith in our products.

This achievement consolidates Hero Honda's market leadership position. In the calendar Year 2005, the company did astounding numbers in terms of sales where they sold a total of 29,16,523 motorcycles, up from 25,28,699 in 2004 thereby registering an impressive growth of 15.3%. The year which was marked by a trend of slowdown in the auto industry, these numbers are a proof of Hero Honda's consistent performance year after year.

Hero Honda's motorcycle model 'Splendor' is still the world's largest selling two wheeler, and Hero Honda Motors Ltd. is Honda Japan's JV No. 1. Thus, Hero Honda is truly leading the way.

The calendar year 2005 also saw a slew of new launches in various segments by the company. One of the biggest milestones was the launch of 'Pleasure'- the first scooter by Hero Honda. 'Pleasure' which is slated to hit the roads in January is targeted primarily at women. Having established its leadership in the industry, Hero Honda further consolidated its position by launching three new motorcycles - 'Super Splendor', 'Glamour' and 'Achiever'.

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