HERO HONDA RETAINS WORLD NO.

1 TWO-WHEELER MANUFACTURER
POSITION FOR THE 9TH CONSECUTIVE YEAR

 REPORTS THIRD CONSECUTIVE QUARTER WITH  MORE THAN

A MILLION UNITS IN SALES

 PAT GROWS BY 78.3% TO Rs. 535.77 CRORE

 TURNOVER (NET SALES & OTHER OPERATING INCOME), AT

RS. 3827 CRORE; GROWS BY 32.82%, EBIDTA AT 17.27%

 OVER 59% SHARE IN DOMESTIC MOTORCYCLE INDUSTRY

Highlights of Q3, FY'09-10

 Total turnover (Net sales & Other Operating income) 3827.03  crores,
growth of 32.82 per cent
 Net profit after tax at Rs. 535.77 crores, growth of  78.34 per cent
 EBIDTA margin for the quarter 17.27 per cent
 Total sales for Q3 stands at 11,11,372 units, growth of 29.56 per cent
 Third consecutive quarter with more than a million units in sales

New Delhi, January 25, 2010: Hero Honda Motors Ltd (HHML), the

world's largest two-wheeler manufacturer, today reported a profit after tax
(PAT) of Rs.535.77 for the third quarter (Oct – Dec’09) of Financial Year (FY)
2009-10 - a growth of over 78.34% over the corresponding period in the
last fiscal (Oct- Dec’08). The company has recorded an EBIDTA margin of 17.27
per cent in the quarter. The EBIDTA margin in the previous quarter (Oct -
Dec'08) was 14.47 per cent.

YTD FY ’10 has been a remarkable year for Hero Honda with the
company posting sales of over a million units and a PAT of over Rs.
500 crores in each of the quarters.  With the third quarter of fiscal 2009,
Hero Honda concludes the calendar year with record sales of over 4.4 million
units, a growth of 22 per cent over the calendar year 2008 when the company
had sold 3.6 million units. With this, Hero Honda has retained the coveted
status of World No.1 two-wheeler manufacturer for the 9th consecutive year.

Riding on a record sales of more than a million units (34, 13,594) of two-
wheelers –the third consecutive time that   the company crossed the
magic million mark in a quarter this year – Hero Honda’s total turnover
(Net sales & Other Operating income) grew to Rs 11708.91 crore, a growth of
31.05 per cent over Rs 8934.36 crore recorded in the corresponding period last
fiscal. The company has recorded an EBIDTA margin of 17.55 per cent in the
nine months ending December 09. The EBIDTA margin in the corresponding
previous period (April - Dec'08) was 13.44 per cent.

The company continued with its commendable top line performance as sales
volumes were up 25.31% per cent during last nine months, while the industry
grew by 20.05% per cent during the same period.

Dr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd, said “Hero

Honda’s strong foundation, the value system and partnership with all our
stakeholders have been the key to  our continued success. I am delighted that
the company has been making great strides in fulfilling its larger vision of a
progressive India. I am confident that the company will continue with its
sustainable contribution to making the dream of mobility for every individual in
the country come alive.” 

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors Ltd., said “It has
indeed been a phenomenal year for us, as reflected in our both top line growth
and bottom line performance. In view of the projected GDP growth and the
continued success of the government schemes directed at rural infrastructure
and employment generation, we are expecting market demand to remain
bullish. Therefore, going forward, we would also have to look at further
augmenting our installed capacity in our existing manufacturing plants, and also
at the possibility of a new plant sometime in the near future”. 

“Instead of resting on our laurels, we are indeed relentlessly working towards

bringing more innovative, value-added products for our customers. As we enter
the calendar year 2010, and the fourth quarter of FY’10, we remain quite
optimistic on our performance. In the short term, however, we are closely
monitoring the movement of commodity prices which are on an upward
trajectory. The rising input costs, as indeed the retail financing situation, remain
areas of concern for the industry.”

The consistent growth has been propelled by several factors. The company has
been continuously investing in innovative and ground-breaking brand building
initiatives. Taking forward its commitment to promote sports in the country,
Hero Honda is going to be associated with four global sporting events in 2010 –
Commonwealth Games, the title sponsor of the FIH Men’s Hockey World Cup
2010, to be held in Delhi in March, the team sponsor for IPL, and title sponsor
for Hero Honda India Open ( Golf).

As part of its product strategy, every year the company launches 8-9 new
models. In line with this, Hero Honda has so far launched six new models
during this financial year– the ZMR, Limited Edition Splendor, and the new
Hunk, the new Passion Pro, the new Pleasure and the new Splendor NXG.
During the balance months of the financial year, the company will further
augment its product portfolio with new launches across segments. The scooter
‘Pleasure’ has also been growing strongly, with more than 16,000 units being
sold every month on an average

In an acknowledgement of the trust that customers across the country repose

in the company, Hero Honda has recently been adjudged the “Company of the
Year” 2009 by Economic Times corporate excellence award, “Bike Manufacturer
of the Year” 2009 by Zigwheels and NDTV Profit Car India Bike India 2009“Bike
Manufacturer Award”.  Dr. Brijmohan Lall, has also been honored with the
NDTV Profit Business Leadership Lifetime Achievement Award 2009 and Mr.
Pawan Munjal was adjudged  NDTV Profit Car India Bike India “Man of the
Year” 2009 Award.