COMPANY PROFILE -Hero MotoCorp
Business Sector :Automobile
Operating Geography :India, Asia, Global
About Hero MotoCorp :
Hero MotoCorp is an Indian motorcycle and scooter manufacturing company. Founded by Mr. Brijmohan Lall Munjal on 19th January 1984 as Hero Cycles, Hero MotoCorp is a Largest two-wheeler selling company in the world for any particular country in terms of unit volumes sold by a single company in a calendar year, for 19 years in a row. Hero started its operation as a joint venture with Honda Motor Company, Ltd., a Japanese public multinational conglomerate. The partnership with Honda was dissolved on 16 December 2010. Hero MotoCorp has eight globally benchmarked manufacturing facilities, including six in India and one each in Colombia and Bangladesh each.
In India, the facilities are namely in Dharuhera and Gurugram Haryana, Chittoor in Andhra Pradesh, Haridwar in Uttarakhand, Neemrana in Rajasthan, and at Halol in Gujrat. Neemrana and Halol plants are also known as ‘Garden Factories’ which have redefined green manufacturing. The facility in Colombia is located at Villa Rica in Cauca province (first Indian Company to start its manufacturing plant in Latin America) and at Jessore in Bangladesh, situated in the southwestern region of the country. The annual aggregate production capacity stands at 9 million units of two-wheelers. The company headquarters are situated in New Delhi, India.
As put in the annual report for FY 20, Hero Motor Corp’s strategy is “Our overarching strategy is to deliver efficient and accessible mobility solutions to the present and future generations through innovation and inclusiveness. We continue to set global benchmarks through our scale of operations and products.” Hero MotoCorp works with the vision to: “Be the future of mobility”. Hero MotoCorp’s mission statement has three aspects: 1. Create: A mobility roadmap 2. Collaborate: with partners and broader teams 3. Inspire: our stakeholders. Hero MotoCorp believes in 5 value: Passion, Courage, Respect, Responsible, Integrity.
Hero MotoCorp Revenue :
INR 29,614 Crore - FY ending 31st March 2020 (y-o-y growth -13.76%)
INR 34,342 Crore - FY ending 31st March 2019
Competitive Analysis of Hero MotoCorp
The SWOT analysis for Hero MotoCorp is presented below in a table followed by the detailed analysis report.
Strengths | Weaknesses |
1. Strong distribution network across India leading to huge customer base
2. World-class Research and Development capabilities
3. World’s largest manufacturer of two-wheelers with global operations
4. Debt free with a strong balance sheet
5. Fortifying base in premium motorcycle and scooter segments
6. Dedicated huge customer base and strong market share
| 1. Declining RoE, RoA, RoCE for the past two years |
Opportunities | Threats |
1. Green energy and ongoing buzz of Electric vehicles
2. Opportunities in emerging mobility segments
3. Growing ‘youthful’ premium segment
4. Current capacity utilization is 72.5% (average) which can be increased
| 1. Termination of BSIV norms have impacted demand
2. Globally hit Covid-19 pandemic impacting the automobile industry
|
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Detailed SWOT Analysis of Hero MotoCorp
Strength
This section is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
This section is available only in the 'Complete Report' on purchase.
Threats
1. Termination of BSIV norms have impacted demand: In March 2020, Government of India declared that BS IV standard vehicle henceforth won’t be allowed to run on the Indian roads. This triggered a turmoil in automobile market. All the dealers and car manufacturing companies started giving attractive discounts on available inventory of vehicles having BS IV emission norms. BS VI standards were made compulsory which made vehicles costlier hampering the demand. Things changed when Corona pandemic hit and country went into total lockdown on 25th March 2020. This relaxed the previous orders giving people some relief and time to register for BS IV vehicles at discount. The short-term turmoil it created, made auto industry stocks to crash. Hero also felt the heat of this novel compliance standard wherein it wrestled to clear its stable of old stock and push sale for new ones with increased prices.
The remaining section of “Threats” is available only in the 'Complete Report' on purchase.
The PESTLE / PESTEL analysis for Hero MotoCorp is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Government promoting loans taken to purchase EVs through tax deductions
2. Fame India Scheme II for the faster adoption of electric mobility
| 1. Average family and disposable income rising despite families being nuclear
2. Emerging markets (EMs) to lead economic growth though short-term volatility in India and other developing markets remains
3. Favourable credit scenario to drive growth
4. India on track to grow to a $5 Tn economy by 2025
|
Social | Technological |
1. Increasing preference for personal mobility
2. Increasing people’s preference for premium vehicles
| 1. Technological advancements driving development of electric vehicles
2. Leveraging digitalization in automobile industry
|
Legal | Environmental |
1. Safety regulation systems and policies
2. Emission control and regulation policies
| 1. Focus on sustainability in operations
2. Organizations increasingly conscious about carbon footprints they leave
|
On purchase the Hero MotoCorp SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.
Detailed Pestle Analysis of Hero MotoCorp
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
1. Technological advancements driving development of electric vehicles:
Electric vehicles are the future of tomorrow. The world is consuming energy at the rate never seen before. To cater to this growing demand of energy, conventional energy sources are not sufficient. Sustainable and clean energy sources are being discovered and harnessed. Commonly used fuels such as petrol, diesel is deteriorating the environment hence EV (Electric Vehicle) is the sought after concept these days. Hero is also working on the same following their strategy to develop customer focused mobility solution. In 2016, Hero invested in India’s best two-wheeler EV start-up named Ather Energy. Hero also has in-house team of 11 youngsters working on design of EV. Hero is considering installing charging stations at all possible touch-points.
The remaining section of “Technological” is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
1. Focus on sustainability in operations: Sustainable development/operation is a method of evaluating whether a business can maintain existing practices without placing future resources at risk. Hero claims to “have sustainability at the heart of everything they do”. They have taken significant steps toward this. They have adapted Green Building Capacity on various manufacturing plants along with Green Roofs, Green Factories. Regarding energy conservation, Hero MotoCorp has set target to become 100% Carbon neutral by 2030 and they are heading towards it enhancing renewable energy portfolio. The company also holds “Zero Waste to Landfill (ZWL) certification for plants in Dharuhera, Gurgaon and Global Parts Centre, Neemrana. Hero has also installed rain-water harvesting projects and enabled manufacturing facilities for zero water discharge.
The remaining section of “Environmental” is available only in the 'Complete Report' on purchase.
Major Brands :
- Passion
- Splendor
- Maestro
- Pleasure
- Glamour
On purchase the Hero MotoCorp SWOT and PESTLE Analysis PDF report will reach you within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Hero MotoCorp SWOT & PESTLE Analysis Report
1. Hero MotoCorp Limited Annual Report 2019-20 –
https://www.heromotocorp.com/en-in/uploads/Annual_Reports/pdf/20200717171801-pdf-207.pdf
2. Indian Emissions Regulations –
https://www.araiindia.com/pdf/Indian_Emission_Regulation_Booklet.pdf
3. A GLOBAL CORPORATE. A GLOBAL BRAND.-
https://www.heromotocorp.com/en-in/about-us.php
4 . Hero MotoCorp working on multiple electric Velical products – https://www.carandbike.com/news/hero-motocorp-working-on-multiple-electric-vehicle-products-2066259
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Hero MotoCorp SWOT and PESTLE analysis has been conducted by Utkarsha Sawant and reviewed by senior analysts from Barakaat Consulting.
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