Hero MotoCorp has revealed their sales report for Jan 2020. Motorcycle sales are down 7%, but scooter sales are down to just 7.2k units, declining 87%.
India’s largest two wheeler maker, Hero MotoCorp reports 5,01,622 units sold in January 2020. Sales decline stands at 13.90 percent, down from 5,82,660 units. FY20 YTD sales (April 2019 to Jan 2020) is down 15.78 percent at 5,576,830 units, down from 6,622,245 units sold for the same 10 months last year. The deficit would be difficult to recover from in the last two months of the current fiscal but it would be interesting to see at just what this number stands at the end of the FY.
Ongoing sales slowdown, and the urgency of BSVI transition have together created a difficult market situation. Keeping in mind Hero Motocorp’s sales volume, the manufacturer has processes in place to ensure smooth transition. Production of BSVI vehicles has been ramped up. The brand has already introduced the HF-Deluxe and Pleasure+ 110 BSVI variants in January 2019.
The company has says its complete scooter portfolio has migrated to BSVI, as the company has now stopped production of BSIV scooters. It is this transition that has literally stopped scooter sales on track. For January 2019, Hero MotoCorp reports scooter sales at just 7,232 units. Down 86.64 percent from 54,171 units sold in January 2019.
With smooth BSVI transition endgame in play, and the scooter range now fully transitioned, scooter sales this month should not feel such turbulent disruption. The larger picture though doesn’t look too much brighter. FY20 YTD scooter sales is down 41.58 percent at 3,71,674 units, down from 6,36,291 units.
Luckily for Hero Motocorp, scooters aren’t the bane of its existence. Motorcycles are. And across the range, January 2019 sales decline is limited to 6.45 percent, down to 4,94,390 units from 5,28,489 units. FY20 YTD motorcycle sales is reported at 5,205,156 units, down 13.04 percent from 5,985,954 units.
Of total sales, a tiny percent is attributed to exports, while Hero MotoCorp’s dominance in the market build on its domestic market performance. Exports last month stood at 13,553 units, up 5.93 percent from 12,794 units. Total exports for the current fiscal, YTD stand at 1,42,253 units, down 12.98 percent from 1,63,480 units exported in the comparable 10 months.
Domestic sales for January 2020 is reported at 4,88,069 units, at sales decline of 14.35 percent, down from 5,69,866 units. FY20 YTD domestic sales has fallen to 5,434,577 units, down 15.85 percent from 6,458,765 units sold.