Hero MotoCorp total sales decline reported at over 22 percent in August 2021
Hero MotoCorp sales fell by a noticeable 22 percent in August 2021. Total fell to 4,53,879 units, down from 5,84,456 units. Volume loss stood at 1,30,577 units. Of this, motorcycle sales made up the bulk of 4,20,609 units. Sales decline stood at 22.78 percent, down from 5,44,658 units. Volume loss stood at 1,24,049 units. Scooter sales fell to 33,270 units from 39,798 units. Sales volume fell by 6,528 units at 16.40 percent decline.
As expected, motorcycle sales contribute to over 90 percent of total sales. Best selling motorcycles include Splendor, HF Deluxe, Passion, Glamour, etc. Scooter sales continue to be a small contributor. Top sellers include Pleasure, Maestro, Destini.
Of total sales, only 22,742 units were exported last month. This was an improvement of 44 percent YoY, up from 15,782 units at volume gain of just under 7k units. Despite sales slowdown last month, YTD FY22 total sales still stands in the green after 5 months. Total YTD sales is reported at 19,32,784 units, up from 16,62,233 units.
Hero MotoCorp MoM August 2021 sales
While YoY sales did take a beating, MoM sales remained more or less stable. MoM motorcycle sales fell by less than percent at 3,517 units volume decline. Motorcycle sales fell from 4,24,126 units.
Scooter sales improved by 10 percent at volume gain of 3k units, up from 20,272 units. Total domestic sales volume improved by 1,929 units, up from 4,28,208 units. MoM exports fell by about 10 percent at volume loss of 2,448 units, down from just over 25k units exported in July 2021.
Hero MotoCorp has been keen on increasing opportunities in export markets. While the manufacturer enjoys market dominance in the domestic market, its export contribution has been far lower than manufacturers who sell far lesser two-wheelers in India.
Gearing up for the 2021 festive season
As an industry, the two wheeler industry is a big one with lakhs of vehicles sold on a monthly basis. This is closely tied to the economy at all times. Market fundamentals remain positive, particularly in rural areas. Agricultural growth has picked up over the past two quarters. Harvest is expected to be above-average with bumper production of key crops including rice and pulses. The ongoing good monsoon coupled with MSPs will lead to an increase in incomes for farmers. This then fuels expectations that they will spend more on two wheelers during the upcoming festive season.
The general outlook for now is that the more people that have their vaccinations on time, the better for all of us. Timely Covid- 19 vaccination has been recommended by WHO for all countries. With India’s population being larger than life, the need to vaccinate is even greater around us. Add to improved vaccination rate, the opening of last mile retail avenues. It portends to an improved business atmosphere, and in turn keeps protections for two wheeler sales in the green.