December 2020 domestic sales and exports in the green for Hero Motocorp
No doubt, 2020 has presented challenges that the world hadn’t expected. In the face of such adverse conditions, two wheeler sales in recent weeks and months have stepped on a growth pedestal.
Hero MotoCorp sold 4,47,335 units in December 2020 at 5.29 percent growth from 4,24,845 units in Dec 19. Total YTD FY21 sales was reported at 42,23,225 units, down 16.79 percent from 50,75,208 units sold in the same 9 months in 2019 at percent decline.
December sales volumes indicate improved consumer sentiment. The company is upbeat about the positive trend, and expects it to continue in 2021 in the face of the ongoing Covid-19 pandemic. The manufacturer relies on its wide range of tech savvy products to support strong growth impetus in 2021.
Hero MotoCorp YTD FY21 domestic sales and exports
Of December sales, motorcycles accounted for 4,15,099, up 2.84 percent from 4,03,625 units. YTD FY21 motorcycle numbers are reported at 38,96,089 units, down 17.29 percent from 47,10,766 units. Unchallenged and all-encompassing demand for the Splendor commuter variants makes Hero MotoCorp untouchable. The lead gained makes it difficult for any other manufacturer to catch-up.
Though demand for Hero Motorcycles is unprecedented, its scooters don’t enjoy the same fandom. Scooter sales did grow to 32,236 units from 21,220 units at 51.91 percent growth. YTD FY21 scooter sales is at a decent 3,27,136 units, at 10.24 percent decline from 3,64,442 units in YTD FY20. The deficit is one Hero Motocorp should be able to overcome by the end of the ongoing fiscal. However, deficit in motorcycle sales is another story.
The majority of vehicles sold by Hero MotoCorp is in the domestic market. Domestic sales in December 2020 was reported at 4,25,033 units, up 3.16 percent from 4,12,009 units sold a year earlier. YTD FY21 domestic sales was reported at 41,03,381 units, down 17.04 percent from 49,46,508 units. Last month, exports accounted for 22,302 units, up 71.64 percent from 12,836 units dispatched overseas a year earlier. YTD FY21 exports stands at 1,19,844, down 6.88 percent from 1,28,700 units exported in the same 9 months in 2019.
Build of to Q3 FY21
Demand for two-wheelers hasn’t just been backed by deferred demand being met. It gets a further boost because more people have felt the need to consider a two wheeler purchase as a safe commuter option that enables them to maintain physical distancing. As FY21 commenced, the stakes were high. A period of inactivity stretched on for weeks before sales and manufacturing resumed.
Albeit in a phased manner, starting up allowed folks to sort supply chains and logistics, and prep for the next big challenge. Timely dispatches of pent-up demand. By the time to festive season was upon us, Hero MotoCorps order books were bursting at the seams. Resultantly, the manufacturer has been able to post its best ever third quarter. A feat that gains even more prominence considering its 2020, and anything could have happened.
Q3 FY21 (October-December period) wholesale dispatches was reported at 18.45 lakh units. That’s an impressive growth of 19.7 percent over the corresponding quarter in the previous fiscal (FY ’20). At the time, Hero has reported sales at 15.41 lakh units.