Sathish Hero Honda

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Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India.

The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and

the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda

has retained that coveted position till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero

Honda's top-selling motorcycle Splendor.

Vision

The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero

Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so,

maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn

that dream into a reality is by remaining focused on that vision.

Strategy

Hero Hondas key strategy has been driven by innovation in every sphere of activity building a robust product portfolio

across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand buildingactivities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at

Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing

plant is based at Haridwar, in the hill state of Uttrakhand.

Technology

In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the

country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection

(FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Products

Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market

segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to

wide variety of requirements across all the segments.

Distribution

The company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new

geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer

touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets

across the country.

Brand

The company has been continuously investing in brand building utilizing not only the new product launch and new campaignlaunch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground-

level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor

of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the

Commonwealth Games Delhi 2010.

2009-10 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent


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Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent

Hero Hondas mission

Is to strive for synergy between technology, systems and human resources, to

produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards

of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps

the organization forge a unique and mutually beneficial relationship with all its

stake holders.

HEROHONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven

management, extensive dealer network, efficient supply chain and world-class

products with cutting edge technology from Honda Motor Company, Japan. The

teamwork and commitment are manifested in the highest level of customer

satisfaction, and this goes a long way towards reinforcing its leadership status.

CODEOFCONDUCT

FOR DIRECTORS AND SENIOR MANAGEMENT

I. INTRODUCTION

This Code of Conduct has been adopted by the Board of Directors of Hero

Honda Motors Limited for its members and the Senior executives one level

below, the Directors, including all functional heads (hereinafter referred to as

"Specified employee").

There are certain clauses of the Code, which are meant for Directors only such

as attending meetings of the Board and Committee thereof. The Specified

employees need to ignore such clauses.

The principal duty of the Board of Directors, along with management, is to

ensure that the Company is well managed in the interests of its shareholders.The Board of Directors plays the central role in the Company's governance. It is

the Company's decision-making authority on all matters except those reserved

to shareholders or delegated to the management. The Board of Directors is not

expected to assume an active role in the day-to-day management of the

Company.

II. GUIDELINES FORCONDUCT

Each director and Specified Employees seek to use due care in the performance


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of his/her duties, be loyal to the Company, act in good faith and in a manner

such Director and Specified employee reasonably believes to be not opposed to

the best interests of the Company. A Director and Specified employee should

seek to also:

y Make reasonable efforts to attend Board and committee meetings.

y Dedicate time and attention to the Company.y Comply with all applicable laws, regulations, confidentiality obligations

and corporate policies of the Company.

y Be independent in judgement and actions and to take all reasonable

steps to be satisfied as to the soundness of all decisions taken by the

Board of Directors.

III. CORPORATE BUSINESS OPPORTUNITIES

In carrying out their duties and responsibilities, Directors and Specified

employees should avoid:

y Appropriating corporate business opportunities for themselves

that are discovered through the use of Company property or

information or their position as Directors and Specified employees.

y Using Company property or information, or their position as Director

and Specified employees, for personal gain.

y Competing with the Company.

A corporate business opportunity is an opportunity:

1. Which is in the Company's line of business or proposed expansion or

diversification.

2. Which the Company is financially able to undertake.3. Which may be of interest to the Company.

A Director and Specified employee, who learns of such a corporate business

opportunity and who wishes to avail of it should disclose such opportunity to

the Company's Board of Directors. If the Board of Directors determines that the

Company does not have an actual or expected interest in such opportunity,

then, and only then, may the Director and Specified employee avail of it,

provided that the Director and Specified employee has not wrongfully utilized

the Company's resources in order to acquire such opportunity.

IV. CONFLICTS OF INTEREST

y Each Director and Specified employee should endeavour to avoid

having his or her private interests interfere with:

i) the interests of the Company or

ii)his or her ability to perform his or her duties and responsibilities

objectively and effectively.

y They should avoid receiving, or permitting members of their

immediate family to receive, improper personal benefits from the

company, including loans from or guarantees of obligations by the


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Company, except as may be provided in their employment contract.

y They should make a full disclosure to the entire Board of any

transaction or relationship that such a Director and Specified

employee reasonably expects could give rise to an actual conflict of

interest with the Company and seek the Board's authorization to

pursue such transactions or relationships.

V. COMPANY PROPERTY


employees should endeavour to ensure that management is causing the

Company's assets, proprietary information and resources to be used by the

Company and its employees only for legitimate business purposes of the

Company.

VI. CONFIDENTIAL INFORMATION

Director and Specified employees should maintain the confidentiality ofinformation entrusted to them in carrying out their duties and responsibilities,

except where disclosure is approved by the Company or legally mandated or if

such information is in the public domain.

The Company's confidential and proprietary information shall not be

inappropriately disclosed or used for the personal gain or advantage of any

Director and Specified employees or anyone other than the Company. These

obligations apply not only during a Director's and Specified employee's term,

but thereafter as well.

VII. FAIR DEALING

In carrying out their duties and responsibilities, Director and Specified

employees should endeavour to deal fairly, and should promote fair dealing by

the Company, its employees and agents, with customers, suppliers and

employees.

Director and Specified employees should not seek to take unfair advantage of

the Company through manipulation, concealment, abuse of privileged

information, misrepresentation of material facts or any other unfair dealing.

VIII. COMPLIANCE WITHLAWS AND REGULATIONS


employees should comply, and endeavour to ensure that the management is

causing the Company to comply, with applicable laws, rules and regulations. In

addition, if any Director and Specified employee becomes aware of any

information that he or she believes constitutes evidence of a material violation

of any securities or other laws, rules or regulations applicable to the Company

or the operation of its business, by the Company, any employee or another

Director and Specified employee, then such Director and Specified employee

should bring such information to the attention of the Chairman of the Audit

Committee.


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IX. INSIDER TRADING

Director and Specified employees should observe all applicable laws and

regulations including the Company policies and Codes as applicable to them

with respect to the purchase and sale of the Company's securities.

It is the responsibility of each Director and Specified employee to become

familiar with and understand these laws, regulations, policies and codes and

should seek further explanations and advice concerning their interpretation, if

required.

Any waiver of or amendments to the Company's policies or Codes may be

made only by the Company's Board of Directors and will be disclosed promptly

as required by applicable laws and regulations including the rules of any

exchange on which the Company's securities are listed or traded.

Director and Specified employees should direct questions regarding the

application or interpretation of these guidelines to the Company

Secretary/Compliance Officer.

X. ENCOURAGING THEREPORTING OF ILLEGALOR UNETHICAL

BEHAVIOUR

Director and Specified employees should endeavour to ensure that

management is causing the Company to promote ethical behaviour and to

encourage employees to report evidence of illegal or unethical behaviour to

appropriate Company personnel.

Director and Specified employees should endeavour to ensure that the

Company will not allow retaliation against any employee who makes a good

faith report about a possible violation of the Company's Code of Conduct.

XI. NON-COMPLIANCE

Suspected violations of this Code may be reported to the Chairman of the

Board or the Chairman of the Audit Committee. All reported violations should

be appropriately investigated.

A Director and Specified employees charged with a violation of this Code should

not participate in or vote on the matter in the meeting of a Committee or the

Board concerning his/her alleged violation, but may be present at a meeting of

the Board or of a Committee convened for that purpose.

Any waiver of this Director and Specified employees' Code must be approved

by the Board of Directors and publicly disclosed if required by any applicable

law or regulation.

XII. EMPLOYEES

The Director and Specified employee should respect each and every employee

of the Company, treat each of them in a fair and equitable manner; respect

their privacy and not to share/disclose their personal information without their


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prior consent; maintain non-discriminatory approach and refrain from harassing

employees, making sexual advancements, coercion, threat by virtue of his/her

position with the Company.

XIII. CUSTOMERS

The Director and Specified employee should ensure to provide products and

services, which meet the desired quality and safety standards and redress the

Customer's grievance genuinely.

XIV. SHAREHOLDERS

The Director and Specified employee should ensure to protect shareholders

interest by ensuring maintenance of accurate and complete records by avoiding

false misleading or artificial entries in the Books of accounts.

This Directors' and Specified employees' Code sets forth guidelines

for conduct for the Board of Directors and Specified employees.

BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro Takedagawa Non-executive Director

8 Mr. Satoshi Matsuzawa(Alternate Director to Mr. Takashi

Nagai)

Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen.(Retd.) V. P. Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. Meleveetil Damodaran Non-executive & Independent

Director

15. Mr. Ravi Nath Non-executive & Independent

Director

16. Dr. Anand C. Burman Non-executive & Independent


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Director

KEY POLICIES

ANENVIRONMENTALLY AND SOCIALLY, AWARECOMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help

you every step of the way in making your world a better place to live

in. Besides its will to provide a high-quality service to all of its

customers,Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the

important issues.

Hero Honda has been strongly committed not only to environmental

conservation programmes but also expresses the increasingly

inseparable balance between the economic concerns and the

environmental and social issues faced by a business. A business must

not grow at the expense of mankind and man's future but rather must

serve mankind.

"We must do something for the community from whose land we

generate our wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our

environmental performance on a continual basis, as an intrinsic

element of our corporate philosophy.

To achieve this we commit ourselves to:

y Integrate environmental attributes and cleaner production in

all our business processes and practices with specific

consideration to substitution of hazardous chemicals, where

viable and strengthen the greening of supply chain.

y Continue product innovations to improve environmental

compatibility.

y Comply with all applicable environmental legislation and also

controlling our environmental discharges through the

principles of "alara" (as low as reasonably achievable).

y Institutionalise resource conservation, in particular, in the

areas of oil, water, electrical energy, paints and chemicals.

y Enhance environmental awareness of our employees and

dealers / vendors,

while promoting their involvement inensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.


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We are committed at all levels to achieve high quality in whatever we

do, particularly in our products and services which will meet and

exceed customer's growing aspirations through:

y Innovation in products, processes and services.

y Continuous improvement in our total quality management

systems.

y Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and

other persons who may be affected by its operations. We believe that

the safe work practices lead to better business performance,

motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

y Integrating safety and health matters in all our activities.

y Ensuring compliance with all applicable legislative

requirements.

y Empowering employees to ensure safety in their respective

work places.

y Promoting safety and health awareness amongst employees,

suppliers and contractors.

y Continuous improvements in safety performance through

precautions besides participation and training of employees.

SALES PERFORMANCE

HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50

% NET PROFIT IN Q2, '08-09

DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES &OTHEROPERATING INCOME), AT RS. 3202 CRORE; EBIDTA

AT 13.58 PERCENT

Aug'06 Aug'07 FY 06-07 FY 07-08

Total Sales 2,15,076 2,40,875 12,82,860 12,63,254

Exports (incl in above)

Highlights of Q2, FY'08-09

Total turnover(Net sales & Other Operating income)Rs

3202 crores, growth of 35.6 per cent

Net profit after tax at Rs 306.30 crores, growth of 50 per

cent

EBIDTA margin for the quarter 13.58 per cent

Total sales for Q2 stands at 9,72,095 units, growth of 28.5

per cent

Total sales for H1 stands at 18,66,349, growth of 19.7 per

cent

Over 55 per cent share in domestic motorcycle market

Launches first-of-its kind music video to celebrate 25 years

of Hero Honda


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New Delhi, October 21, 2008: Hero Honda Motors Ltd

(HHML), the world's largest two-wheeler company for seven

consecutive years, today firmly reiterated its undisputed

leadership in the domestic two-wheeler market with

impressive bottom line growth for the second quarter (Q2)

July to September - of this financial year (FY) 2008-09.

Even as the industry continued to face tough market

conditions on account of uncertainty over interest rates and

overall credit squeeze, the company reported 50 per cent

growth in profit after tax (PAT) at Rs 306.30 crore for the

second quarter. Hero Honda's profit after tax in the

corresponding period last fiscal (July - Sept, 2007-08) stood

at Rs 204.33 crore.

Total turnover (Net sales & Other Operating income) grew to

Rs 3202 crore, a growth of 35.6 per cent over Rs 2361 crore

recorded in the corresponding period last fiscal. The company

has recorded an EBIDTA margin of 13.58 per cent in thequarter. The EBIDTA margin in the previous quarter (April -

June '08) was 12.20 per cent.

The strong financial performance is in line with the

company's better-than-industry top line growth. After

posting a growth 11.38 per cent in the first quarter, the

company kicked off the second quarter with a 39.8 per cent

growth in sales in the month of July, and followed up with

26.8 per cent growth in August and 22.4 per cent in

September. Hero Honda consistently keeps growing its share

in the domestic motorcycle market, and currently enjoys over

55 per cent share.

Hero Honda's cumulative sales for the second quarter (Q2)

this FY stands at 9,72,095 units - a growth of 28.5 per cent

over Q2 last FY (2007-08). The cumulative sales for the first

six months (H1) stands at 18, 66,339 units of two-wheelers

compared to 15, 59,486 units sold in H1 in the last FY

reflecting a consistent 19.7 per cent growth in cumulative

sales.

Dr. Brij Mohan Lall,Chairman,Hero Honda Motors Ltd, said

"We are happy with our financial performance. It gives

immense joy to see this kind of results in the 25th year of our

company. I wish to thank all our stakeholders customers,associates, dealer friends, ancillaries and also our joint

venture partners Honda Motors Co for their continuous

support."

Mr. Pawan Munjal, MD & CEO,Hero Honda Motors Ltd., said

"Our numbers speak for themselves. Even in this volatile and

competitive environment, our top line continues to outpace

the industry growth, our market share is at an all time high,

and the financial balance sheet is a delight all the factors


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which form the hallmark of a resilient company with cutting-

edge management. We will continue to keep innovating in

bringing in technologically-superior products, in our network

expansion, in brand building, in our financial management,

and in our communication."

"Going forward, we will have to keep a close watch on thecommodity prices movement, and other factors such as

inflation, interest rate scenario and availability of retail

finance. These factors will play a crucial role in the industry

growth in the subsequent quarters," he added.

Hero Honda has already rolled out its festive season

initiatives, with the launch of four new models the all-

new "Passion Pro" and three refreshes of its existing models

- new CBZ X-treme, a selfstart version of Splendor NXG and

the refreshed Pleasure. During the coming months, the

company will further augment its product portfolio with new

launches across segments.

Key Hero Honda brands continue to drive 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.

Celebrating its 25th year,Hero Honda released an innovative

music video in the month of September. Titled "Hero Honda

Dhak Dhak Go", and involving as many as eight brand

ambassadors of Hero Honda, the music video has been

receiving rave reviews.

Hero Honda recently won two very coveted awards - "The

Most preferred Brand of two-wheelers" award at the recent

CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit

Business Leadership Award".

HEROHONDA CLOSES CALENDARYEAR 2007 WITH SALES OF

OVER 33 LAKH BIKES

HEROHONDA CONSOLIDATES MARKET LEADERSHIP WITH

IMPRESSIVE GROWTHOF 15% IN MARCH08

HEROHONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER

CENT INCREASE IN MAY SALES

HEROHONDA CONTINUES TOCONSOLIDATE MARKET

LEADERSHIP WITH 27 PERCENT GROWTH IN AUGUST SALES

HEROHONDA NET PROFIT ZOOMS 31% TORs 275 CRORE IN Q3

(FY 2007-2008)

HEROHONDA PASSES ONEXCISE DUTYCUT BENEFIT TO


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CUSTOMERS

HEROHONDA POSTS RECORD 6 LAKH-PLUS UNITS INRETAIL

SALES INOCTOBER 2008

HEROHONDAS POSITIVE PERFORMANCECONTINUES INNOV08

HEROHONDAS SEPTMEBER08 SALES JUMP 22 PERCENT

HEROHONDAS STRONG SALES PERFORMANCECONTINUES INTO

2008

REPORTS 13% GROWTH INCUMULATIVE SALES IN APR-NOV08

HERO HONDA CLOSES CALENDAR YEAR 2007 WITH SALES OF

OVER 33 LAKH BIKES

New Delhi, Tuesday, April 21, 2009: Recap of year 2007

Slew of launches across various segments this calendar

year

Multi-focal strategy leading to better-than-industry

performance and gain in market share

Doubled volume and share in the premium segment

Consolidated over 50 per cent share in domestic motorcycle

market

New Delhi, January 2, 2008: Hero Honda Motors Ltd

(HHML), the worlds largest two-wheeler manufacturer,

today reported cumulative sales of 33, 09,051units of two-

wheelers for the period JanuaryDecember 2007. The

companys cumulative sales for the calendar year 2006 was

32, 53,229. This achievement is significant in view of the

prevailing slow down of the two wheeler industry.

For the month of December 2007, HHML reported sales of

240,532 units of two-wheelers. The companys sales for the

corresponding period last year were 252,462 units.

The better than industry performance of HHML through 2007

has been possible due to the companys multi-focal strategy

of bringing in new products across segments, supporting

them with extensive 360 degrees communication, leveragingproperties such as cricket and entertainment for brand

building and augmenting its distribution network. As a result,

Hero Hondas share in the domestic motorcycle market has

grown to upward of 50 per cent.

Year 2007 saw Hero Honda launch new models across

segments. The company more than doubled its volume and

share in the premium segment this year, with the new all-

muscle and macho Hunk, and the sporty and stylish CBZ X-


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treme both doing very well.

New 100cc bike Splendor NXG, refreshed Pleasure, new

Super Splendor, refreshed Passion Plus, were other additions

to Hero Hondas product portfolio in 2007. The company

crossed the twenty million cumulative sales mark this year

and launched the special edition Splendor Plus to mark theoccasion. In the month of December, continuing with its

engagement with youth,Hero Honda brought the legendary

rock band Scorpions to India, for performances in Mumbai

and Bangalore as part of the bands Humanity World Tour

2007-08. This came close on the hills of the very

popular Hero Honda Campus Rock Idols, a nationwide

contest of amateur rock bands that culminated into a grand

finale in Delhi in the first week of December.

HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH

IMPRESSIVE GROWTH OF 15% IN MARCH08

FOR FY 2007-08, HERO HONDA OVERTAKES PREVIOUSFISCALS SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE

INDUSTRY DECLINES BY MORE THAN 10 %

New Delhi, Tuesday, April 21, 2009: Achievements and

Highlights for FY 07-08

o Defying the industry trend,Hero Honda achieved sales of

33,37,142 units of two-wheelers, thereby consolidating

leadership in domestic motorcycles market with more than

52 per cent market share.

o Hero Honda retained the coveted position of 'World's No 1

two-wheeler company' on unit sales by a single company

during calendar year 2007 for the seventh year in a row.

o Crossed half a million retail sales in the festive season in

2007, and achieved landmark cumulative sales of twenty

million bikes in course of 2007.

New Delhi, March 31, 2008: Hero Honda Motors Ltd


further consolidated its undisputed market leadership,

reporting impressive sales numbers for the month of March.

Once again, defying the industry trend, the company

sold 3,20,594 units of two-wheelers in the month, a growth

of 15 per cent. Hero Honda had sold 277,915 units of two-

wheelers in March 2007.

The companys total sales for the financial year 2007-08

stand at 33,37,142 two-wheelers, as compared to 33,36,756

units for the previous financial year (2006-07). This is

significant in view of the severe slowdown that the domestic

two-wheeler industry is going through for the past more than

a year.

Mr. Pawan Munjal, Managing Director, Hero Honda Motors

Ltd said, The year 2007-08 has seen a leadership


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performance from us. Despite the industry slowdown, we

have been able to manage positive growth thereby taking our

share in the domestic motorcycle market upward of 52 per

cent. At the end of the financial year, I would definitely like

to thank our millions of customers across the country, who

have made it possible. We will continue to focus on our

customers and they can surely look forward to many morelaunches and various initiatives in the coming year.

HHMLs good run through the industry slump in 2007 has

been possible due to the companys multi-focal strategy of

bringing in new models and variants across segments,

supporting them with innovative communication across

media, leveraging properties such as cricket and

entertainment for brand building and augmenting its

distribution network.

Hero Honda also recently associated itself with the Indian

Premier League (IPL) as a partner and is also the official

sponsor of the Delhi Daredevils (Delhis IPL Team).

Fiscal 2007-08 saw Hero Honda launch new models across

segments. The company more than doubled its volume and

share in the premium segment this year, with the new all-

muscle and macho Hunk, and the sporty and stylish CBZ X-

treme both doing very well. Other new launches such as

Splendor NXG, and refreshes of successful models including

Pleasure, Super Splendor, and Passion Plus, were added to

Hero Hondas product portfolio in the FY 07-08.

The company also crossed the landmark 20 million

cumulative sales during the course of year.

For further information:

Sanjiv Singh / Santanu Gogoi,

9818430943 / 9810424271.

HEROHONDA CONTINUES GROWTH MOMENTUM WITH 9.5 PER

CENT INCREASE IN MAY SALES

NEW LAUNCHES SUCH AS THEREFRESHED SPLENDORNXG &

HUNK DRIVING VOLUMES IN RESPECTIVE SEGMENTS

New Delhi, Tuesday, April 21, 2009: New Delhi, June 1,

2008:C

arrying on its impressive growth momentum in thenew financial year (2008-09), (HHML), the worlds largest

two-wheeler manufacturer for seven consecutive years,

today reported a 9.5 per cent growth in its sales in May

2008.

Hero Honda sold 3,12,317 units of two-wheelers in May

2008, as compared to2,85,109 units in the corresponding

month last year. This comes close on the heels of a nine per

cent growth the company had reported in the month of April


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with sales of 2,86,252 units of two-wheelers. Thus Hero

Honda has already clocked a total sales of 5,98,569 units of

two-wheelers in this financial year.

According to Mr. Anil Dua, Sr. Vice President (Marketing &

Sales),Hero Honda Motors Ltd., Our recent launches such as

the refreshed Splendor NXG and the 150cc Hunk have beendriving volumes in their respective segments. While Hunk has

contributed largely to doubling our volume and share in the

premium segment, the refreshed Splendor NXG has been

driving the volumes in the deluxe segment. Our new

campaign for Splendor NXG is currently on air on all mainline

TV channels. We continue our strategy of brand building, and

we will continue to utilize our various properties in the field

of cricket and youth entertainment towards this end. We

have carried forward our commitment to the promotion of

cricket by partnering the highly-successful Indian Premier

League (IPL), as well as being the official team sponsor of

the Delhi Daredevils.

Hero Honda was bestowed the Enterprise Excellence Award

2007 by the Indian Institution of Industrial Engineering

(IIIE) at an awards function held in Goa in the month of May.

HERO HONDA CONTINUES TO CONSOLIDATE MARKET

LEADERSHIP WITH 27 PERCENT GROWTH IN AUGUST SALES

New Delhi, Tuesday, April 21, 2009: Reports robust sales of

305,516 units during the month

Cumulative sales in April August 08 grows by 19 per

cent

New Delhi, September 1, 2008: Hero Honda Motors Limited


further consolidated its leadership in the domestic

motorcycle market, with a robust 26.8 per cent growth in

sales for the month of August 2008. The company

sold 305,516 units of two-wheelers in August 2008,

compared to 240,875 units in the corresponding month last

year.

With this,Hero Hondas cumulative sales in this financial yearso far (April-August 2008) stands at 14,81,077 units as

against 12,44,919 units in the corresponding period last year

reflecting a 19 per cent growth in cumulative sales.

This carries forward the companys positive growth trajectory

since the beginning of this financial year (2008-09), further

augmenting its more than 55 per cent share in the domestic

motorcycle market.


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Sales), Hero Honda Motors Ltd, Our strategy is yielding

results. The strategy hinges on creating winning brands

across segments, investing in brand building, exploring

untapped markets in rural and upcountry areas while

consolidating urban presence and rapidly expanding our

network. However, the industry continues to face uncertaintyon account of high interest rates and overall credit squeeze.

The festival month of October is going to be crucial in

determining the overall outlook of the industry for the year.

Key Hero Honda brands continue to drive 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 Hondas scooter Pleasure has also been growing

strongly, with more than 12,000 units being sold in August

this year.

HEROHONDA NET PROFIT ZOOMS 31% TORs 275 CRORE IN Q3

(FY 2007-2008)

REPORTS TURNOVEROFRs. 2795 CRORERECORDS EBIDTA

OF 13.95%

New Delhi, Tuesday, April 21, 2009: 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.


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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 Hondas profit after tax in

the corresponding period last fiscal stood at Rs 209.18 crore.

Total Turnover (sales turnover plus other income, net ofexcise) 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-September07) was 12.39%.

This strong financial performance comes close on the heels of

the companys good overall sales even in the face of the

prevailing slowdown in the two-wheeler industry. Hero

Hondas cumulative total turnover for the first three quarters

(AprilDecember 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 Hondas 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 marketshare 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 PASSES ON EXCISE DUTY CUT BENEFIT TO

CUSTOMERS


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New Delhi, Tuesday, April 21, 2009: REDUCES PRICES ON ALL

MODELS, RANGING FROM RS 1000/- TO RS 2400/-

SALES 265,431 UNITS OF TWO-WHEELERS IN FEBRUARY

New Delhi, March 1, 2008: Passing on the excise duty cutbenefit in Budget 2008 to customers,Hero Honda Motors Ltd

(HHML), the worlds largest manufacturer of motorcycles,

today reduced prices on all its models, ranging from

Rs1000/- to Rs 2400/-.

The company, which sold 265,431 units of two-wheelers in

the month of February, reduced the price of Splendor+ by

about Rs 1300/- (ex-showroom Delhi) and on Karizma by

about Rs 2400/- (ex-showroom Delhi). Similarly, the price of

its best-selling 150cc bike Hunk has been reduced by about

Rs 1800/- (ex-showroom Delhi).

Mr. Pawan Munjal, MD & CEO,HHML, said Hero Honda hastaken the voice of the customer to the government, and

consequently the excise duty on two-wheelers has been

reduced to 12 per cent from 16 per cent. This is a welcome

move, and we are happy to pass on the entire benefit to

customers. The reduction in excise duty cut will enable us to

draw more customers to our fold, but the basic factors

causing the industry slowdown still remain unattended.

Credit financing has been withdrawn in some key markets,

while interest rates on consumer loans also remain very high.

This credit squeeze continues to be the most critical factor

adversely impacting industry growth, and we still dont see

any indication from the banks and the government to address

this concern. For the industry to make a turnaround and get

back on the path of growth, the government has to address

these key issues.

HERO HONDA POSTS RECORD 6 LAKH-PLUS UNITS IN RETAIL

SALES IN OCTOBER 2008

New Delhi, Tuesday, April 21, 2009: New Delhi,November 1,

2008: Close on the heels of an outstanding performance in

the second quarter (July September 2008) with 50 per cent

growth in net profit, Hero Honda Motors Ltd (HHML), theworld's largest two-wheeler manufacturer, today reported its

highest-ever retail sales in a month, with more than six lakhs

units of two-wheelers being sold in the festive month of

October. This highest-ever retail sales in a month represents

more than 12 per cent growth over its previous highest

5.31 lakh units sold in October 2006.

The dispatch numbers for the month of October stood at

352,449 units, as compared to 365,022 two-wheelers sold in


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October 2007.


Sales),Hero Honda Motors Ltd, "We are delighted with our

retail performance in October. We have always maintained

that we were expecting robust retail sales in the festive

month of October, and the number of more than six lakhunits in retail sales is a vindication of that. With the festive

season being over now, we do expect to see a slowdown in

the industry with the prevailing credit squeeze and interest

rates taking their toll on consumer sentiments. Keeping this

in mind, we have consciously restricted our dispatch sales in

October.

"However, we will stay true to our winning strategy, and

keep refreshing our product portfolio and continue to invest

in brand building. We introduced four new models in the

month of October, and going forward, we will be launching a

few more in November as well."

Hero Honda launched four new models in the festive month

the all-new "Passion Pro Power Start", one variant the

Splendor NXG Power Start, and two refreshes - new CBZ X-

treme and the Pleasure. During the coming months, the

company will further augment its product portfolio with new

launches across segments.

Despite all odds, Hero Honda - the world's largest two-

wheeler manufacturer for seven consecutive years - has been

consistently strengthening its share in the domestic

motorcycle market and it has been steadily moving upwards

of 55 per cent. During the month of October,Hero Honda was

honoured with the "NDTV Profit Business Leadership Award"

in the two-wheeler category. The NDTV Profit Business

Leadership Awards acknowledge "the best, the brightest and

the most dynamic of Indian organisations that have emerged

leaders in their respective verticals and are leading India in

her journey toward being an economic superpower."

HEROHONDAS POSITIVE PERFORMANCECONTINUES INNOV08

REPORTS 13% GROWTH IN CUMULATIVE SALES IN APR-

NOV08

New Delhi, Tuesday, April 21, 2009: New Delhi, December 1,2008: Hero Honda Motors Ltd continues to buck the

prevailing trend in the two-wheeler industry.

Close on the heels of record retail sales of more than 600,000

units in the festive month of October, Hero Honda today

reported dispatch sales of 289,426 units of two-wheelers in

November. The company had sold 288,027 units in November

2007. This achievement is significant, coming as it does

immediately after the bumper festive season, when the sales


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are usually expected to slacken considerably.

The companys cumulative sales in the financial year so far

(April-November08) has now risen to 25,08,214 units a 13

per cent growthover the corresponding period last year

(April-November07) when Hero Honda had sold 22,12,535

units.

According to Mr. Anil Dua, Senior VP (Marketing & Sales),

Hero Honda Motors Ltd, Our performance in November

comes against several odds. Scarcity of retail finance in many

key markets and the high rates of interest remain a major

concern. As the industry leader, our focus has been on driving

growth despite these constraints. Therefore, our performance

in November is of added significance, as it has surpassed the

numbers of November07 which was the high-sales Diwali

month last year.

Having already launched five new models in this financial

year, including variants and refreshes,Hero Honda is set toannounce a few more launches in the coming weeks. The

new launches will be across segments to further augment the

already strong Hero Honda range.

Hero Honda brands have been driving volumes in their

respective segments - CD Deluxe in the entry segment;

Glamour, Splendor NXG, Splendor+ and Passion Plus in the

Deluxe segment, CBZ X-treme and Hunk in the Premium

segment and Pleasure in scooters.

The new CBZ X-treme, which was introduced in October, is

being communicated through a new cutting-edge, fast-paced

TV Commercial (TVC) currently on air across channels. The

new refreshed Pleasure, which is clocking an average of

approx 12,000 units per month, is also being supported by a

new TVC featuring its brand ambassador Priyanka Chopra.

Hero Honda continues to invest in brand building and

strengthening its association with properties such as cricket.

Hero Honda was the title sponsor of the recently-concluded

Hero Honda Cup One-Day International (ODI) Series between

India and England which India won 5-0.

HEROHONDAS SEPTMEBER 08 SALES JUMP22 PER CENT

New Delhi, Tuesday, April 21, 2009: Reports robust sales of 385,262 unitsduring the month Cumulative sales jump by 19.6 per cent


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Company launches first-of-its kind musicvideo to celebrate 25 years of Hero Honda

New Delhi, October 1, 2008: Hero HondaMotors Limited (HHML), the worlds largest

two-wheeler manufacturer, has reiteratedits undisputed market leadership byrecording an impressive 22.4 per centgrowth in sales for the month of September2008.

The company sold 385,262 units of two-wheelers in September 2008, compared to314, 567 units in the corresponding monthlast year. With this, Hero Hondascumulative sales in this financial year so far(April-September 2008) stands at18,66,349 units as against 15,59,486 unitsin the corresponding period last year reflecting a robust 19.6 per cent growth incumulative sales.

According to Mr. Anil Dua, Sr. VicePresident (Marketing & Sales),Hero HondaMotors Ltd, It gives us immense pleasureto see our strategy consistently yielding

results and the company recordingprogressive sales numbers in its twentyfifth year. We have been driving the growthin the industry despite the interest ratescenario and overall credit squeeze in themarket remaining unchanged. With newlaunches on the anvil and the forthcomingfestive season, we are confident ofperforming well in the coming month.

Celebrating its 25th year, Hero Honda

Motors Limited (HHML) released aninnovative music video in the month ofSeptember. Titled Hero Honda Dhak DhakGo, and involving as many as eight brandambassadors of Hero Honda, the musicvideo has been receiving rave reviews.


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Hero Honda won the coveted, The Mostpreferred Brand of two-wheelers award atthe recent CNBC Awaaz Consumer Awards2008.

HERO HONDAS STRONG SALESPERFORMANCE CONTINUES INTO 2008Reports sales of 298,050 units in January2008

New Delhi, Tuesday, April 21, 2009: NewDelhi,February 1, 2008: Close on the heelsof a robust bottom line growth for the thirdquarter ended December07,Hero HondaMotors Ltd (HHML), the worlds largest

two-wheeler manufacturer, today reportedexcellent sales numbers for the month ofJanuary, yet again defying the industrytrend.

Despite an industry slowdown, thecompany reported an impressive 298,050unit sales for the month of January 2008,as against 297,554 in January 2007. Withthis,Hero Hondas cumulative sales for the

current fiscal now stand at 27,51,376units.

HHML on Thursday reported 31 per centgrowth in profit after tax (PAT) at Rs 275crore for the third quarter (October-December) of this financial year (2007-08).Hero Hondas profit after tax in thecorresponding period last fiscal stood at Rs209.18 crore.

According to Mr. Pawan Munjal, ManagingDirector & CEO, Hero Honda MotorsLtd., The sales numbers reflect a goodstart to the calendar year. Given theindustry performance all through thisfiscal, we are extremely enthused by ourrobust financial numbers for Q3 as well as


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our outstanding sales performance thismonth. Our new launches have been doingvery well across segments, e.g. our latestlaunch, the 150cc Hunk has been a bigdraw with our customers, and has helped

us double our volume and share in thepremium segment.

Hero Honda was recently honored as the Bike Manufacturer of the Year at theOverdrive Awards, and also at the NDTVProfit - Car India Bike India Awards.

Additionally, its premium bike 150 cc Hunkwon the coveted Viewers Choice Awardat the NDTV Profit - Car India Bike India

Awards.

Three of Hero Hondas leading brands alsowon the TNS Voice of the Customer Awardsin their respective segments - TNS Voice ofthe Customer No1 Executive Motorcycle -Splendor NXG,No 1 standard Motorcycle -CD Deluxe and No 1 Premium MotorcycleCBZ X-treme.

Hero Honda also won two prestigious

customer loyalty awards in the month ofJanuary - the Best Customer LoyaltyProgram Award (Automotive) at therecent Asia Retail Congress, and Customerand Brand Loyalty Award in automobilesector (two-wheelers) at the LoyaltySummit 2008. These recognitions trulyexemplify the customers enduring trustand faith in the company and its products.

REPORTS 13% GROWTH IN CUMULATIVESALES IN APR-NOV08

New Delhi, Tuesday, April 21, 2009: NewDelhi, December 1, 2008: Hero HondaMotors Ltd continues to buck the prevailing


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trend in the two-wheeler industry.

Close on the heels of record retail sales ofmore than 600,000 units in the festivemonth of October, Hero Honda today

reported dispatch sales of 289,426 units oftwo-wheelers in November. The companyhad sold 288,027 units in November 2007.This achievement is significant, coming asit does immediately after the bumperfestive season, when the sales are usuallyexpected to slacken considerably.

The companys cumulative sales in thefinancial year so far (April-November08)has now risen to 25,08,214 units a 13 percent growth over the corresponding periodlast year (April-November07) when HeroHonda had sold 22,12,535 units.

According to Mr. Anil Dua, Senior VP(Marketing & Sales), Hero Honda MotorsLtd, Our performance in November comesagainst several odds. Scarcity of retailfinance in many key markets and the highrates of interest remain a major concern.

As the industry leader, our focus has beenon driving growth despite theseconstraints. Therefore, our performance inNovember is of added significance, as it hassurpassed the numbers of November07 which was the high-sales Diwali month lastyear.

Having already launched five new modelsin this financial year, including variants andrefreshes,Hero Honda is set to announce a

few more launches in the coming weeks.The new launches will be across segmentsto further augment the already strong HeroHonda range.

Hero Honda brands have been drivingvolumes in their respective segments - CD


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Deluxe in the entry segment; Glamour,Splendor NXG, Splendor+ and Passion Plusin the Deluxe segment, CBZ X-treme andHunk in the Premium segment andPleasure in scooters.

The new CBZ X-treme, which wasintroduced in October, is beingcommunicated through a new cutting-edge, fast-paced TV Commercial (TVC)currently on air across channels. The newrefreshed Pleasure, which is clocking anaverage of approx 12,000 units per month,is also being supported by a new TVCfeaturing its brand ambassador PriyankaChopra.

Hero Honda continues to invest in brandbuilding and strengthening its associationwith properties such as cricket. Hero Hondawas the title sponsor of the recently-concluded Hero Honda Cup One-DayInternational (ODI) Series between Indiaand England which India won 5-0.

Sales Promotion.Sales promotion is any initiative undertaken by an organisation to promote an increase in

sales,usage or trial of a product or service (i.e. initiatives that are not covered by the other

elements ofthe marketing communications or promotions mix). Sales promotions are varied.

Often they areoriginal and creative, and hence a comprehensive list of all available techniques is

virtuallyimpossible (since original sales promotions are launched daily!). Here are some

examples ofpopular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating

promotion.For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you

sell twofor $1, you are still in profit - especially if there is a corresponding increase in sales. This

isknown as a PREMIUM sales promotion tactic.(b) Customer Relationship Management (CRM) incentives such as bonus points or money offcoupons. There are many examples of CRM, from banks to supermarkets.


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(c) New media - Websites and mobile phones that support a sales promotion. For example, in

theUnited Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a

consumerwould enter the code into a dynamic website to see if they had won a prize. Consumers

couldalso text codes via their mobile phones to the same effect.(d)Merchandising additions such as dump bins, point-of-sale materials and productdemonstrations.(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwichpurchase. Once the card was full the consumer was given a free sandwich.

2

(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their

customerswith the latest low-price deals once new flights are released, or additional destinations

areannounced.(g) Joint promotions between brands owned by a company, or with another company's

brands.For example fast food restaurants often run sales promotions where toys, relating to a

specificmovie release, are given away with promoted meals.

(h)Free samples (aka. sampling) e.g. tasting of food and drink at sampling points

insupermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to

potentialconsumers at supermarkets, in high streets and at petrol stations (by a promotions team).(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on TheInternet, and on packs.(k) Cause-related and fair-trade products that raise money for charities, and the less well offfarmers and producers, are becoming more popular.(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that promotions can

beaimed at wholesales and distributors as well. These are known asTrade Sales

Promotions.Examples here might include joint promotions between a manufacturer and a

distributor, salespromotion leaflets and other materials (such as T-shirts), and incentives for

distributor salespeople and their retail clients.3

OBJECTIVES


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To have an overview of HERO HONDA BIKES.

To know the reputation of HERO HONDA BIKES in the market.

Howtheconsumer preference towards the brand HERO HONDA BIKES. The main objective how to increase the reputation of HERO HONDA BIKES brand inthe market. To understand its competitors in business. How HERO HONDA BIKES will create a good image in the market. To understand the 4 Ps used by the HERO HONDA BIKES in business. A study of present & potential various market of HERO HONDA BIKES. It has been based on a survey over the market and other behavior aspect. The survey is also aimed at reviewing the competitiveness of various HEROHero herohonda bikes toward the YOUNG BIKE RIDER

Sathish Hero Honda

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