• 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

Hero Honda Motors Ltd. (HHML), the world''s largest two-wheeler manufacturer, 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 Honda''s profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore.

Total Turnover (sales turnover plus other income, net of excise) 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-September''07) was 12.39%.

This strong financial performance comes close on the heels of the company''s good overall sales even in the face of the prevailing slowdown in the two-wheeler industry. Hero Honda''s cumulative total turnover for the first three quarters (April–December 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 Honda''s 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 market share 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.