Hero MotoCorp Sells 14 Lakh Two-Wheelers This Festive Season
With the pandemic taking a toll on the automotive industry, automobile giants like Hero MotoCorp are facing the heat. But this festive season seems to have reversed their fortune with the company making a record sale of 14 lakh motorcycle units in the recently concluded festive month.
The company witnessed an unprecedented customer demand in two-wheelers – both motorcycles and scooters. This retail boom has boosted their market share and strengthened their leadership
Despite the severe disruptions on account of the Covid-19 this year, the good retail off-take during the 32-day festival period – spread between the first day of Navratra and the concluding day after Bhai Duj – was 98% of the festive season volumes sold by the Company in the previous year (2019) and 103% compared to the same period in 2018.
Banking on this sudden retail sale, Hero MotoCorp reduced the vehicle stocks at their dealerships to less than four weeks, the lowest ever post-festive inventory.
The Festive Season Demand
The festive season sale was primarily due to the strong performance of popular models such as
- the 100cc Splendor+ and HF Deluxe,
- 125cc motorcycles Glamour and Super Splendor and
- the Xtreme 160R and the XPulse range in the premium segment.
The Glamour in its BS-VI avatar continues to gain volumes in new markets.
Along with these, there has been a steady demand for Destini and Pleasure scooters, which seemed to be the preferred choice of customers this season. This has resulted in high double-digit growth for the two models.
With the resumption of work at their plant in May and the recent uptick in retail sales this festive season, Hero MotoCorp’s market share has grown by more than 500 bps in the month of October.
Ensuring Safety Revived Business
This is primarily due to the timely planning and preparations of all the stakeholders, dealers and partners of the company that consolidated the whole ecosystem. Hero MotoCorp has successfully led the revival of the domestic two wheeler industry in the last couple of months despite some severe supply chain issues.
The company was quick to ensure that safety protocols were maintained in their customer touch points, thus assuring that safety and well-being of their employees and customers are of primary importance.
With the vaccine round the corner, and the IMF forecasting a double digit growth for the Indian economy in FY’22, Hero MotoCorp is confident that the automobile sector will be on a recovery path as customer sentiments for automobiles including two-wheelers change for the better.