Hero MotoCorp Share Price

Founded in: 1984

Hero MotoCorp Ltd

Hero MotoCorp Limited, based in India, holds the title of the world’s largest two-wheeler manufacturer. The company maintains its leadership position primarily due to its consistent innovation, strong production systems, and wide range of products.

Hero MotoCorp is a world-famous brand when it comes to trust and quality. It continues to be the first choice for bike enthusiasts. The company, as far as design, manufacturing, and marketing are concerned, offers an exhaustive range of motorised two-wheelers along with spare parts and accessories.

A Glorious Beginning and Evolution

Hero MotoCorp was incorporated on January 19, 1984, as Hero Honda Motors Ltd. The joint venture was between India's Hero Group and Japan's Honda Motor Company. The company was formed based on a collaboration agreement signed in 1983.

Such a strategic alliance between the two conglomerates was pivotal in making it the world's largest manufacturer of two-wheelers. This joint venture soon created a stir in the market by introducing the motorcycle CD 100 in 1985, which set the foundation for the brand's success.

Hero Honda promised to manufacture only top-quality, fuel-efficient motorcycles, which resonated well with the Indian populace and quickly made it a popular brand in India.

Towards the late 1980s and 1990s, Hero Honda introduced several new models, such as Sleek in 1989 and CD 100 SS in 1991. These motorcycles built a vast reputation for reliability and affordability. It was in 1995 that the company launched its flagship motorcycle, Splendor, which became an instant hit.

To cater further to the surged demand, Hero Honda established its second manufacturing unit in Gurgaon, Haryana, in 1997. The company expanded and, at the same time, came up with new models, for instance, the Hero Honda CBZ in 1999, which was the first ever 150cc motorcycle.

Expansion and the End of the Joint Venture

In 2001, it introduced models like Passion and Joy to cater to a larger segment. Several successful models followed in its wake, such as CD Dawn, Splendor+, Passion Plus, and Hero Honda Karizma, which was the first-ever 223cc motorcycle in India. The product line was further expanded with the launch of Ambition 135 and CBZ in 2004.

The partnership between Hero and Honda lasted for several decades, but in 2010, the Indian promoters led by the Munjal family restructured their shareholding and realigned their stake in the company. This resulted in Hero Cycles capitalising its stake to Hero Investments Pvt Ltd HIPL, and then in 2011, Hero Honda was rechristened as Hero MotoCorp Ltd, which ended the major partnership with Honda.

Post this shift, Hero MotoCorp emphasised its development as an independent entity, thereby concentrating on the expansion of product mix, manufacturing process improvements, and customer service enhancements.

Strategic Innovation and Global Expansion

Under its new identity as Hero MotoCorp, the company took bolder strides to grow outside India. In 2015, it set up its first overseas plant in Colombia, followed by another in Bangladesh. This was just the beginning of a global strategy that would footprint the company across diverse continents. It also forayed into the electric vehicle (EV) segment with the launch of the Vida brand in 2022, which was a monumental step toward defining the future of sustainable mobility.

This phase saw the launch of several new and updated models by Hero MotoCorp, such as the Xtreme 200S, Splendor iSmart 110, and the Duet E, an electric scooter that was showcased in 2016. All these were part of a larger plan aimed at changing market dynamics, especially towards performance, aesthetics, and environmental sustainability.

The company also launched its Global Centre of Innovation and Technology (CIT), a state-of-the-art facility in Jaipur. It designed advanced concepts and technologies that would help the company sustain its competitive advantage in the global marketplace. The launch of the Hero Harley-Davidson X440 in 2023 marked Hero MotoCorp's foray into premium segments and a strategic alliance with Erik Buell Racing (EBR) in 2012, created an opportunity for the company to develop and introduce high-performance motorcycles.

The venture into electric vehicles under the Vida brand is yet another sign of Hero MotoCorp's versatility and commitment to innovative technologies.

Technological Leadership and Sustainability

In the past few years, Hero MotoCorp has really stepped up its game by boosting its tech to meet world-class auto standards. In 2020, they made a big leap forward in controlling emissions by meeting the BS-VI (Bharat Stage 6) norms. This move helped them stick to important environmental rules.

Furthermore, the company has invested significantly in research and development to retain its leadership position within the two-wheeler market. Another initiative toward sustainability was taken by the company with the GARDEN factory, set up in 2014, as a move toward reducing its carbon footprint and ensuring that its manufacturing processes are eco-friendly.

Hero MotoCorp's electric vehicle subsidiary, Vida, launched a new chapter in the company's diversification into electric mobility in 2023. The Vida V1 was introduced in Delhi, Jaipur, and Bengaluru — India's first fully integrated electric scooter. This step was essential for competing in the very fast-growing EV segment, which is anticipated to significantly influence the future of two-wheeler mobility.

Quick Overview

Since it kicked off in 1984, Hero MotoCorp has gone from strength to strength. Today, it holds the title of the world's largest two-wheeler manufacturer. It has done an impressive job of becoming a global brand by making big moves in tech, sustainability, and growth. Plus, it is also ahead of the curve in the electric vehicle scene.

With its creative products and focus on expanding, Hero MotoCorp is set to keep leading the way in the two-wheeler industry. As a result, the Hero MotoCorp share price and reputation are expected to skyrocket in the following years.