Wednesday, October 25, 2006

Hero Honda launches 2 new variants, the new Glamour and Passion Plus Limited Edition

Hero Honda Motors Ltd on October 25, 2006 has 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 on October 25, 2006 for the financial results for the second quarter 2006-07.

Meanwhile, the Company 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, the Company has been placed overall 7th in the rankings by the prestigious report.

The Company 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 the Company in the deluxe segment where it enjoys clear leadership position.

During the quarter, the Company 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. The Company 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 the Company this fiscal to four. These new models, coupled with the 4 new launches planned during this fiscal will help the Company 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 the Company - 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 the Company's ongoing campaign "Heroes for Heroes", as part of which the "Mobike Pe Mobile" initiative has been rolled out for customers.

Source: Equity Bulls