SALES PERFORMANCE - Hero Honda

SALES PERFORMANCE

STRONG UNDERLYING RETAIL GROWTH CONTINUES

• STRONG UNDERLYING RETAIL GROWTH CONTINUES • BEGINS FISCAL ’11 WITH 2 NEW LAUNCHES – REFRESHED LAMOUR & GLAMOUR FI • CROSSES THE MILESTONE OF 1 LAKH VILLAGES ON COVERAGE UNDER THE RURAL INITIATIVE

Hero Honda Motors Ltd (HHML), the world’s largest two-wheeler manufacturer, continues to post monthly sales of over 3 lakh units. This is the 16th consecutive month that the company has reported three-lakh-plus sales.The company today started the first quarter (April-June) of Financial Year (FY) 2010-11, with sales of 3,71,652 units in the month of April, 2010. Hero Honda had sold 3,70,575  two-wheelers in April last year. Mr. Anil Dua, Sr. Vice-President (Marketing and Sales), Hero Honda Motors Ltd said, ““We have been witnessing a steadily growing demand for our products, and have been ramping up our production levels accordingly. However, as we have already informed, due to certain IR issues at our suppliers' end, we have faced an acute shortage of batteries for over two weeks in the month of April. As a result of this, our despatches have been adversely impacted and currently over 50,000 fully finished motorcycles are stranded at our plants for want of batteries. I am happy to inform that these issues have now been resolved and we have been assured of supply returning to normal within a week’s time." Hero Honda’s retail sales continue on its robust growth trajectory. To further keep up this momentum, the company has introduced two models in April – the refreshed Glamour and Glamour FI. Both these models have been contributing significant volumes to the company’s strong share in the deluxe segment, and the launch of the refreshes are set to further build on this leadership. Hero Honda also recently crossed yet another significant milestone by covering 100,000 villages under its path-breaking rural initiative – “Har Gaaon Har Angan”.The umbrella platform for all rural initiatives which was launched in late 2007, has been instrumental in the steadily growing share of Hero Honda in the rural and upcountry markets, taking the contribution of sales from these markets to 42 per cent of the company’s total sales. Hero Honda crossed several new milestones in the recently concluded fiscal (2009-10). The company posted a stellar top line performance with the total cumulative sales volume of more than 4.6 million units. Hero Honda also crossed the landmark million units in sales in each quarter of fiscal ’10, capping it off with the highest-ever quarter sales of 11, 86,536 units in the fourth quarter. The company also reported an excellent bottomline with its highest-ever annual revenues, net profit and earnings per share.

HERO HONDA SCALES NEW HEIGHTS WITH HIGHEST-EVER MONTHLY SALES OF 4.35 LAKH TWO-WHEELERS GROWS BY 14% WITH SALES OF 4,35,933 UNITS IN MAY’10 HERO HONDA REPORTS OVER 4 LAKH UNIT SALES IN JUNE & A RECORD QUARTER HERO HONDA KEEPS CONSOLIDATING ITS LEADERSHIP HERO HONDA REPORTS 4TH CONSECUTIVE MONTH OF FOUR LAKH-PLUS SALES HERO HONDA REPORTS ITS HIGHEST-EVER QUARTERLY SALES OF 1.28 MILLION UNITS HERO HONDA REPORTS HIGHEST-EVER SALES IN A MONTH WITH RECORD 5-LAKH PLUS UNIT DESPATCHES IN OCTOBER’10 HERO HONDA REPORTS SALES OF 421,366 UNITS IN NOVEMBER’ 10 HERO HONDA RECORDS 5 LAKH UNIT SALES IN DECEMBER CROSSING THE 5 MILLION MARK FOR THE CALENDER YEAR 2010 HERO HONDA BEGINS THE NEW YEAR WITH A RECORD JANUARY SALES OF 4.67 LAKH UNITS HERO HONDA SET TO ZOOM PAST RECORD 5 MILLION UNIT SALES IN FY ‘10-11