Hero MotoCorp sees subdued sales in April 2021 owing to temp closure of plant ops, and closure of dealerships across regions
As Covid-19 infections continue to reach new highs in India, the auto industry is blighted by its spread. Depending on strategies to arrest growth, in recent week many a state government has issued lockdown orders.
This apart, manufacturers are dealing with shortage of parts and interrupted supply chains. While the market hasn’t completely shutdown as was the case in April 2020, current challenges are many.
In this atmosphere of uncertainty, Hero MotoCorp has reported domestic wholesales at 3,42,614 units. The auto manufacturer has also extended plant closures by 6 days to arrest the spread of Covid-19. Operations will be resumed on May 10, 2021. Including exports, total sales in April 2021 is reported at 3,72,285 units. MoM decline stood at 35.47 percent, down from 5,76,957 units. Volume decline is reported at just over 2 lakh units.
Sales in April 2021
Of total sales, motorcycles sales in the domestic market continues to lead from the front. Wholesales was reported at 3,39,329 units accounting for 91.15 percent of domestic sales. MoM decline stood at 35.32 percent, down from 5,24,608 units. Volume loss stood at 1,85,279 units.
Scooter sales is reported at 32,956 units accounting for the remainder of domestic sales. MoM decline stood at 37.05 percent, down from 52,349 units. Volume loss stood at 19,393 units. Exports are reported at 29,671 units, accounting for 7.97 percent of total sales. MoM decline is reported at 9 percent, down from 32,617 units at volume loss at just under 3k units.
Hero says sales in April ’21 was subdued owing to temporary closure of plant ops, and the fact that retail outlets remain have again been shut across many regions. These are state issued orders planned to stop the spread of the current devastation of the pandemic. As manufacturing and dealer dispatches remained shut in April 2020, there is no comparable YoY data for manufacturers for April 2021.
Hero extends closure at plants
Hero is committed to safety and has stopped work at its manufacturing facilities in IndiaIndia, its Global Parts Center (GPC) in Neemrana, and the R&D facility – the Centre of Innovation and Technology (CIT) in Jaipur till May 9, 2021. Plant ops will resume on May 10th.
All corporate offices are on Work from Home (WFH) mode, and personnel that are required to visit office are doing so on a limited and rotational basis. The situation is being monitored continuously, and Hero MotoCorp aims to compensate for production loss during the remainder of the quarter.