BusinessDay
Nigeria's leading finance and market intelligence news report.

100m milestone at Hero Motocorp shows path to sustainable growth

As Nigeria and several other countries look to leverage population growth to drive social and economic development, research has shown that one of the viable ways to do so is through deliberate investment in the transportation sector.

Cities in developing countries are experiencing an astonishing pace of urbanization and rapid growth with an unprecedented increase in transportation infrastructure investment.

The growth of urban transit presents an opportunity to improve the standard of living for countless people, connecting them to economic opportunities and jobs.

Because of intensive use of infrastructures, the transport sector is an important component of the economy and a common tool used for development. This is even more so in a global economy where economic opportunities have been increasingly related to the mobility of people and freight, including information and communication technologies.

No doubt, mobility is key to economic development, as it connects people, trade and commerce from one country to another.

Leveraging population to develop transport

For countries with high populations, rather than see this as a challenge, they are leveraging their population to drive development through investment in transportation infrastructure.

For instance, India 2020 population is estimated at 1,380,004,385 people at mid-year according to UN data. India’s population is equivalent to 17.7 percent of the total world population. India ranks number two, in the list of countries (and dependencies) by population.

Hero MotoCorp Ltd, headquartered in The New Delhi (India) has for 20 consecutive years held the position as the world’s largest manufacturer of motorcycles and scooters, in terms of unit volumes sold by a single company in a year, thereby providing feasible mobility solution for the people of India and the several other countries.

In a bid to achieve its vision to ‘Be the Future of Mobility,’ Hero MotoCorp has been at the fore-front of providing mobility to the aspirations of millions around the world and the achievement of this milestone is the success of evolving engineering, operational excellence and sustainable practices.

“It is also the success of the holistic ecosystem built on trust and belief that has grown along with this company. Most importantly, this is a celebration of the customers who continue to shower their love and faith on Hero.

“This significant landmark is also an affirmation of the inherent capabilities in India and Hero’s Brand appeal. We have been making in India, for the world – and this milestone is an acknowledgment of the customers’ preference for Hero across geographies, demographics and generations.

“We are going to continue to ride our growth journey. In keeping with our Vision to ‘Be the Future of Mobility’ we will be launching a host of new motorcycles and scooters over the next five years, in addition to expanding our global footprint. We will also continue to invest in R&D and focus on new mobility solutions,” Pawan Munjal, chairman and CEO, Hero MotoCorp said.

Surpassing milestone of 100m units in cumulative production

Hero MotoCorp, the world’s largest manufacturer of motorcycles and scooters, recently surpassed the significant milestone of 100 Million (10 Crores) units in cumulative production.

In 1994, the company recorded its first million units, in 2001, it recorded five million, in 2004 –10 million, in 2008 – 25 million, in 2013 – 50 million, in 2017 – 75 million and in 2021, the company recorded its 100 million units milestone.

The 100 millionth bike, the Xtreme 160R, was rolled-out of the company’s manufacturing facility in Haridwar, in the northern Indian hill state of Uttarakhand.

This is also the 20th consecutive year that Hero MotoCorp has retained the coveted title of the world’s largest manufacturer of two-wheelers.

Hero MotoCorp’s achievement of this landmark is one of the fastest global achievements of the 100 million cumulative production mark, with the last 50 Million units coming in a span of just seven years.

To mark the occasion, Pawan Munjal unveiled six special celebration edition models at the Company’s manufacturing facility at Gurugram, located in the National Capital Region (NCR) of Delhi.

The six celebration edition models include Splendor+, Xtreme 160R, Passion Pro, Glamour (motorcycles) and Destini 125, Maestro Edge 110 (scooters) – that will go on sale from February 2021.

Focused on Sustainable Growth, Hero MotoCorp has been building value for communities across the globe and acting as an economic multiplier with its sales, R&D and manufacturing ecosystems. It also continuously works towards the progress of the societies it operates in.

The journey of Hero MotoCorp in 37 years

Addressing a global audience including customers, dealers, distributors, investors, suppliers, employees, customers and the media, Pawan Munjal explained how the journey of Hero MotoCorp had been since it was set up in 1984.

According to Munjal, “In January, 1984, exactly 37 years ago when this company was incorporated, we were focused on the future and reaching new milestones. A dream was set in motion with a vision for the company on what it wanted to be.

“Continuously targeting milestones with the vision for the dream in motion, little did we know that this will become an organisation that will change the way our nation moves. Our chairman emeritus and my father put the building blocks in place for an ecosystem that is providing mobility to millions globally.

“Today, Hero MotoCorp provides wheels to the aspiration and acts as an economic multiplier across the world. We have a long way to go on our relentless journey of adding value to the world. Today, I feel proud and elated as this great organisation and everybody associated with it are experiencing an achievement and a monumental milestone.”

He noted that the milestone signifies much more than just a sales record, adding that it is the success of an iconic brand and the trust that Hero’s customers have placed on it, its bikes and scooters.

He stressed that these successes were possible because of the hard work of its employees and all its heroes, who have all contributed to the success of India.

“If my father were here, he would be so proud and humbled to see what we have become today. A lot of people get fascinated by all the facilities we have around the world.

“All our hard work, efforts and learning have really paid dividends in this past decade. When many people had many issues because the economy was very slow, this also brought some level of success and growth for India and Hero.

“Hero kept on achieving newer heights but this exponential growth achieved by the organisation in these recent years has an even greater significance. From selling four million units every year, to now selling eight million units every year, adding another five world class manufacturing facilities to our existing three, thereby creating a global benchmark in the ecosystem spreading across India and Germany,” he disclosed.

In achieving all these, he emphasised that balance has been a very crucial aspect in everything Hero does, adding that a critical aspect of its progression and journey has to be focused on a well-rounded growth.

“We at Hero MotoCorp are highly conscious of this fact and ensure that we add more value to everything that we do. Sustainability is very close to my heart and one of the key pillars of our operations is that we ensure we continuously focus on providing sustainable growth in the societies that we operate and also to all our stakeholders. Our manufacturing facilities across the globe are called garden factories for their sustainability and green initiatives,” Munjal said.

Succeeding amid COVID-19 pandemic

Amid the pandemic, Hero MotoCorp kept the industry moving forward and showed the path to survival.

Munjal admitted that the year 2020 had its own impacts and it would have been very easy for the staff of Hero to relax, defer all targets and wait for life to get back to normal but that wasn’t the case.

He said Hero’s entire eco-system came together and ensured that they stay on course to meet the company’s goals, thereby creating hope for the economy. He said in the process, Hero also grew and aided the recovery of the sector.

“It is this work ethic that has kept Hero MotoCorp at the top of the chat for so many years now,” he said.

For Munjal, the story of Hero’s growth and success is synonymous to the growth and success of India.

“From making a single product in 1985 when we started to three in the 1990s. Today, with our youthful and aspirational, global customer base, we have more than 20 products. As the country and its economy opened up, we began to understand its potentials; Hero continued to play the role of an enabler to its aspirations.

“From personal mobility, to setting up an eco-system that provides economic viability to societies and geographic regions. Hero has been providing mobility for its customers, its people, its society, for our country, India and now for multiple nations across the globe.

Hero’s five-year plans and vision

Munjal also outlined Hero MotoCorp’s plans and vision for the next five years.

He said during this timeframe, the company will aim to further consolidate its leadership position, expand its global footprint, launch exciting and relevant products and also work on new innovative product concepts.

As part of the next five-year plan, Hero MotoCorp will introduce over 10 products – including variants, refreshes and upgrades – every year.

Hero MotoCorp also has a steep growth target for its markets outside India. It will continue to grow its operations in these markets and also enter key markets in new geographies.

Hero MotoCorp will continue to reduce its carbon footprint through its green facilities and fuel-efficient products. The Company will also continue to work towards the propagation of new mobility solutions both through its internal programs and by supporting the larger external ecosystem.

Hero Motobike is marketed in Nigeria by Kewalram Chanrai Group.

 

Whatsapp mobile

Get real time updates directly on you device, subscribe now.