Indian motorcycle manufacturer Hero MotoCorp, owned by the Munjal family, has elevated second-gen Pawan Munjal to the role of vice chairman, clarifying the family’s succession plans.
The 59-year-old accepted the role at Hero MotoCorp this week – a move that many believe signals a forthcoming power shift wherein Pawan will soon succeed his father as chairman of the family business.
Brijmohan Lall Munjal, the current chairman of Hero MotoCorp and the Munjal family patriarch, who owns 52% of the motorcycle manufacturer, said the appointment was an acknowledgement of Munjal’s inspiring leadership.
“Pawan's vision has helped Hero MotoCorp strengthen its number one position in a highly competitive market. There are undoubtedly challenging times ahead but, under the leadership of Pawan, the future looks promising,” the 91-year-old said.
A predecessor company to Hero MotoCorp was established by the four Munjal brothers in the 1950s and proved popular because of the motorcycle’s low cost and fuel economy.
Hero MotoCorp in its current form was established in 1982.
Alongside the news of Pawan's ascension, Hero MotoCorp said net sales at the company went up by 14.2% to Rs 6,999 crore (€852 million) in 2014’s first quarter.
Pawan said he was grateful for the faith and confidence of the company’s board and stakeholders. "I take this as an acknowledgement of all the good work that we have done as a team in building on our leadership over the past several years”.