Hero motorcycle and scooter production has been affected due to corona virus, as a result sales for Feb 2020 is down
Hero MotoCorp sold a total of 4,79,310 motorcycles in February 2020. While that number is huge by itself, and keeps the manufacturer at the top of the pecking order in the two wheeler industry, it is in fact a sizeable decline. Sales fell 14.28 percent from 5,58,884 units sold in February 2019. YTD FY20 motorcycle sales has fallen 13.14 percent to 56,84,466 units from 65,44,838 units.
Scooter sales decline was way sharper. Sales fell to a mere 18,932 units, down 67.54 percent from 58,331 units. YTD FY20 scooter sales fell 43.76 percent to 3,90,606 units from 6,94,622 units. Total sales last month fell to 4,98,242 units, down 19.27 percent from 6,17,215 units. YTD FY20 total sales has fallen to 60,75,072 units, down 16.08 percent from 72,39,460 units.
In the domestic market, Hero total sales stood at 4,80,196 units as against 600,616 units in Feb 2019. This is a decline of 20.05%. Exports in February 2020 fell to grew to 18,046 units, up 8.71 percent from 16,599 units. YTD FY20 exports, though much smaller in volume has gone down the same path. Numbers are down to 1,60,299 units, down 10.98 percent from 1,80,079 units.
Last month was significant for Hero Motocorp. The manufacturer transitioned to manufacturing only BSVI vehicles as production of BS-IV two-wheelers were stopped. Following this, Hero MotoCorp commenced dispatch of BS6 models of Splendor+, Super Splendor, Glamour and Passion Pro motorcycles, and Maestro Edge 125 and Destini 125 scooters. New Xtreme 160R too has been showcased. An XPulse 200 Rally Kit has been introduced.
Ongoing COVID-19 pandemic has adversely impacted production at Hero MotoCorp manufacturing plants in India in February. The company has in the meantime made substantial progress in developing alternate sources for component procurement. As of now, component makers in China have restarted production, and are expected to resume normal supplies soon. This will help the manufacturer get back on track in regard to production disruption.
While the COVID-19 matter has caught affected manufacturers off guard, the Indian auto industry is already plagued with an ongoing sales slowdown that has spanned many months. Add to this, adjustment in process and production to ensure smooth BSIV to BSVI transition has also affected manufacturers in some quarters. BS6 transition is mandated from April 1, 2020, and manufacturer’s are required to work well within the set deadline so as to not leave dealers in a tight spot with an abundance of dead stock.