Hero MotoCorp total sales have crossed the 8 lakh mark in a single calendar month for the first time in history
Hero MotoCorp Ltd has sold 8,06,848 motorcycles and scooters in October 2020. This isn’t just a high point but to put it in perspective, it’s the manufacturer’s highest-ever sales in any single month at 34.64 percent gain, up from 5,99,248 units sold in October 2020.
While this isn’t enough to recover sales lost at the start of FY21 on account of Covid-19 pandemic related lockdown, the high sales milestone is a shot in the arm considering a few months earlier now one new if any sort of sales recovery was possible this year.
Clearly those uncertainties are behind Hero Motocorp, and the brand would be quite hopeful about November sales too. The festive season each year is a time when auto manufacturers count on the increased number of footfalls to dealerships to seal a deal, and this year that has been in plenty. Keeping in mind current positive sales sentiment, November too is a period manufacturer’s will be closely monitoring.
Hero Sales Report
Motorcycles make up the majority of Hero MotoCorp sales and accounted for 7,32,498 units at 32.54 percent growth from 5,52,672 units having gained 1,79,826 units in volume. The remainder 9.21 percent sales is contributed by scooters, sales for which accounted for 74,350 units, up 59.63 percent from 46,576 units sold a year earlier. Majority of motorcycles sales were thanks to Splendor and HF Deluxe. These two register about 70% of total sales of Hero Moto.
Hero’s dominance in the domestic market accounts for 7,91,137 units of total sales, up from 5,86,988 units sold last year. Exports are reported at 15,711 units having gained 28.15 percent, up from 12,260 units last year.
Hero MotoCorp has reported double-digit growth of 35 percent over 5,99,248 units sold in October 2019. This is partly on account of low base sales last year as the auto industry was already dealing with slowdown as FY20 progressed.
Sales Momentum To Continue In Nov
Furthermore, current safety requirements harbour on personal vehicles because of the risks posed by using public transport, and their unavailability in large tracts of public transport routes.
As the job and labour market limp back to regular commutes, a company like Hero MotoCorp can rely on its mass market commuter bike reputation to tide by. Sudden sales slowdown in April also means deferred buying decisions are now being realised. In all, the sum total of circumstances is seeing Hero MotoCorp enjoy its numero uno position even more this season.
Current positive turnaround in customer sentiment in motorcycle segments, and restarting of the supply chain, logistics and business ops has helped Hero MotoCorp do what seemed unthinkable just a few weeks earlier.
Higher dispatches during the month means Hero’s touch-points now have adequate inventories in line with market demand. In Q2 FY21(July-September), market share across product categories and geographies has improved. The company expects to continue building on current momentum.